The shipping industry has seen an increase in major vessel casualties for 2016, the second year in a row, according to a report by the International Union of Marine Insurance (IUMI).
Major vessel casualties had been on a decline in the years prior to 2015, but, for that year, a sharp upturn was recorded, which continued further into 2016, said IUMI.
However, total vessel losses continued to decrease, with the decline in claims frequency being offset by the higher average cost of claims.
For example, the latest generation of container ships can carry as much as 20,000 TEUs, with cargo value of around US$985 million. This is much larger compared to older vessels, such as the MSC Flaminia, which suffered a fire in 2012 with US$115 million in cargo on board.