There is some useful context from Allianz here, for the wider insurance sector not just Marine/Hull. The impact on supply chains, cargo delays, extra expenses plus the ongoing infrastructure rebuild locally, will all be considerable. But how frequent are harbour or estuary collisions? Some interesting analysis of the port collision and safety issues here;
Baltimore’s Francis Scott Key Bridge collapsed into the Patapsco River in the early hours of March 26 after a container ship, the Dali hit a column. Initial reports suggested that as many as 20 people from the bridge may be in the water. There were no reported crew casualties.
About the vessel:
The Dali is a 9-year-old, Singapore flagged container ship, which is approximately 300m long (almost 1,000 feet), about the length of three football pitches. Gross tonnage is 95,218, so under half of that of the Ever Given, the vessel that blocked the Suez Canal in 2021
About Baltimore port:
The Dali just left the Helen Delich Bentley Port of Baltimore, which is the largest port in the US for specialised cargo (specifically for wheeled cargo, such as trucks and trailers) and bulk handling facilities.
It is estimated that around 800,000 vehicles passed through the port in 2023, moving a record 1.3 million tons of imported cargo.
Collisions Frequency
Shipping collision and contact incidents statistics from the Allianz Commercial Safety and Shipping Review (applies to vessels over 100 gross tonnage and reported incidents only)
· There have been close to 2,000 reported incidents of vessels colliding with port infrastructure such as harbor walls etc. over the past decade around the world (1,980 between 2013 and 2022), making it the fourth most frequent cause of more than 27,000 shipping incidents during this period (around 7%). Machinery damage/failure (10,753), collision involving vessels (3,098) and groundings (2,936) are the other top causes of incidents during this period.
· There have been 203 contact with infrastructure incidents involving container ships around the world during this period. The most common incidents involve colliding with port infrastructure such as harbor walls, piers, quays, locks. Bridge incidents such as this one are rare (no exact data on how many).
· The shipping industry has made significant Improvements when it comes to maritime safety over the past decade in particular. Thirty years ago, the global fleet was losing 200+ vessels a year. At the end of 2022 fewer than 40 losses were reported. Annual shipping losses have declined by 65% over the past decade reflecting the positive effect of an increased focus on safety measures over time. Nevertheless, while total losses have declined the number of shipping incidents reported around the world every year has remained consistent. There were 3,032 reported incidents during 2022 compared to 3,000 a year earlier.
· Machinery damage/failure accounted for close to half of all of these incidents globally in 2022 (1,478). There were 280 collision incidents involving vessels (the second top cause), over 200 reported fire incidents (209) – the highest total for a decade, while contact with port infrastructure such as harbor walls was the fifth top cause of shipping incidents (155 incidents)
· Based on the causes of previous contact incidents, common causes of this type of incident can include human error and machinery/equipment/engine failure such as main engine failure, steering failure, generator blackout.
· Total losses of vessels following collision incidents with other vessels and contact with port infrastructure are thankfully rare. Over the past decade (across all vessel types) there have been just 30 total losses from collision incidents (with other vessels) and just four from contact incidents (with port infrastructure). Collectively these account for just 4% of the total number of vessels lost overall (807 reported between 2013 and end of 2022).
Possible insurance implications
Initial reports indicate the nature of the incident is likely to fall within the scope of P&I coverage which covers third party liability for vessels including damage to fixed or floating objects. Outside of the implications from any tragic loss of life, the nature of the incident points to a sizeable loss, given the extent of the damage to the bridge and the surrounding area. Other potential losses could result from blocked port access, cargo loss, any environmental implications etc.,
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