THE cost of claims from containership fires far exceed the loss of anything else in the industry, says marine insurance giant AXA XL, reports Sydney's Insurance Business magazine.
'When we examine the overall value of insurance claims, it becomes evident that fires on containerships actually far exceed any other type of loss in the industry,' said Tom Hughes, head of marine in Australia for Connecticut-based AXA XL.
The International Union of Marine Insurance (IUMI) regards fire risks as a 'huge issue' and 'on everybody's mind', said Mr Hughes.
In a recent interview with Insurance Business, Hendrike Kuhl, the IUMI policy director said cargo fires on containerships 'have become a common occurrence' causing 'numerous casualties' and 'severe damage.'
'It is not unusual for people outside of marine insurance or the shipping industry to believe that the main source of financial losses in this sector stems from incidents like containers falling overboard, or shipping incidents such as sinking or collision,' said Mr Kuhl. 'However, this is not the case.'
Said Mr Hughes: 'Studies show a clear upward trend in fires occurring on both general cargo and container vessels in recent years. This situation is particularly troubling for container vessels given the distinct challenges involved in preventing and extinguishing fires once they ignite out at sea.'
A 2020 IUMI report found that between 2000 and 2015, more than 50 of these fires caused just over US$1 billion in damages (excluding hull damages).
Mr Hughes said it's widely recognized that when containerships get bigger, and their volume of cargo increases, the frequency of fires also increases.
'When there are more containers on board, there's a higher chance that a container might hold materials prone to self-ignition, potentially resulting in a fire,' he said.
'As the size of the ship increases, the impact of the worst-case fire scenario grows exponentially,' Mr Hughes said.
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'When we examine the overall value of insurance claims, it becomes evident that fires on containerships actually far exceed any other type of loss in the industry,' said Tom Hughes, head of marine in Australia for Connecticut-based AXA XL.
The International Union of Marine Insurance (IUMI) regards fire risks as a 'huge issue' and 'on everybody's mind', said Mr Hughes.
In a recent interview with Insurance Business, Hendrike Kuhl, the IUMI policy director said cargo fires on containerships 'have become a common occurrence' causing 'numerous casualties' and 'severe damage.'
'It is not unusual for people outside of marine insurance or the shipping industry to believe that the main source of financial losses in this sector stems from incidents like containers falling overboard, or shipping incidents such as sinking or collision,' said Mr Kuhl. 'However, this is not the case.'
Said Mr Hughes: 'Studies show a clear upward trend in fires occurring on both general cargo and container vessels in recent years. This situation is particularly troubling for container vessels given the distinct challenges involved in preventing and extinguishing fires once they ignite out at sea.'
A 2020 IUMI report found that between 2000 and 2015, more than 50 of these fires caused just over US$1 billion in damages (excluding hull damages).
Mr Hughes said it's widely recognized that when containerships get bigger, and their volume of cargo increases, the frequency of fires also increases.
'When there are more containers on board, there's a higher chance that a container might hold materials prone to self-ignition, potentially resulting in a fire,' he said.
'As the size of the ship increases, the impact of the worst-case fire scenario grows exponentially,' Mr Hughes said.
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