Global insurer Allianz reports that shipping has become far safer over the past decade, with vessel losses down sharply despite war risks and the rise of the shadow fleet, as reported by Fort Lauderdale's Maritime Executive.

In 2016, there were 127 total losses of vessels over 100 gross tonnes, averaging one every three days. By 2025, the number had fallen to 43, which is less than one a week, even as the global fleet expanded.

Allianz credited stronger regulations, improved ship designs, technological advances such as ECDIS, and better risk management under the STCW and ISM Code for the decline in casualties.

Fires and explosions remain a persistent concern, with 218 incidents reported in 2025. The insurer noted that this was the second-highest annual total of the past decade, exceeded only by 2024.

Looking ahead, Allianz expects war risk and geopolitical tension to weigh more heavily on casualty numbers. Conflicts involving Russia, Ukraine, the US, Israel, and Iran have already caused substantial damage to shipping, with high claims anticipated for P&I clubs in 2026.

The insurer warned that maritime commerce faces structural challenges, including fragmented trade routes, volatile bunker prices, new fuels, regulatory demands, and climate disruption. It concluded that shipping is entering a new era of greater complexity, capital intensity, and risk exposure.