Has economic gloom created a sea safety boom?

Unprofitable shipping rates, more stringent Port State Control inspections and fewer severe weather events are, it seems, likely factors behind declines in the number of ship casualties say analysts at the service.

Lloyd’s List Intelligence Casualty service, the world’s only constantly manned global casualty reporting network, also showed an apparent accident hot spot in the eastern Mediterranean areas of Greece, Turkey and the Black Sea, which experienced a year-on-year rise in accidents of more than 4% in 2010.

“Indeed, the eastern Med region accounts for a hefty fifth of all incidents reported by the Casualty service,” says Adam Smallman, head of content for Lloyd’s List Group. “These numbers may support anecdotal and movements evidence that the region is a magnet for sub-standard vessels. Vessel traffic in the region is dense but other regions have seen traffic rise and incidents fall. Stricter implementation of regulations in those other regions may be a factor,” he added.

However, the global picture is a better one despite the rise in eastern Mediterranean casualties and the high profile oil spills of 2010. “Oil rig incidents are included in shipping casualty data and BP’s Deepwater Horizon disaster in April was the most noteworthy,” continues Smallman. “Another high-profile casualty seen last year was an explosion in July aboard the tanker M. Star, loaded with 270,000 tonnes of crude, in the Strait of Hormuz.”

Why the better picture overall, though? Winter weather, unsurprisingly, appears to play a role in worsening casualties, as data from the Baltic shows. There, casualties last year doubled in the winter months to 119 against only 59 in the summer period. This pattern may hold implications for insurers and operators as a World Meteorological Organisation panel of experts suggests global warming will bring fewer but more intense hurricanes and typhoons over the next few years.

Weather aside, the fall in global incidents may be related to shipowners laying up vessels as rates made it uneconomic to operate them last year. Economic woes may also have contributed to less demanding and strenuous schedules.

“In addition, we are continuing to see the impact of stringent Port State Control regulations in ports all around the world, with shipowners now aware that sub-standard tonnage will be routinely detained in port until the problems on board are resolved,” explained Steve Olley, head of the Lloyd’s List Casualty service. “PSC inspectors will jump on anything from faulty navigation equipment to hygiene in the vessel’s kitchens to inadequate fire-fighting and life-saving drills. But also the economic situation is undoubtedly a factor, with the pressure taken off crews to fulfil such demanding schedules,” he added.

In theory, ongoing economic weakness in parts of the world and the tougher Port State Control regime may continue to contribute to declining casualty numbers.