According to Allianz Global Corporate & Specialty (AGCS) annual ”Safety and Shipping Review ” there were 71 reported shipping incidents in Arctic Circle waters during 2015, up 29% year-on-year and the highest in a decade. In 2006 there were just 8 incidents. Machinery damage/failure was the cause of 65% of incidents, driven by the harsh environment. The mandatory Polar Code, expected to enter into force in 2017, will help ensure more responsible shipping in such high-risk waters but safety questions remain.
Lower oil prices have had an impact on the uptake of commercial sailing activity on the Arctic’s Northern Sea Route, (see graph below). With bunker prices virtually a third of the price they were two years ago, there is less incentive to find sailing routes which will burn less fuel. That said, evident pressures on operating margins means that operators are still interested in reduced sailing times that promise a saving of more than 10 days over a more traditional routing. There is also increased interest in cruises in sensitive Arctic water, and oil and gas exploration continues, albeit on a reduced level.
Captain Andrew Kinsey, Senior Marine Risk Consultant at AGCS believes a reduction in shipping activity in Arctic waters is temporary as the need for passages through this route will intensify when oil prices recover.
In December 2015 vice premier Dimitry Rogozin said “Russia has all the technological possibilities to make the Northern Sea Route operational round the year and in any season” in future at an Arctic international forum.
Despite the adoption of the International Code for Ships Operating in Polar Waters (The Polar Code) by the IMO during 2015ii, tremendous challenges to operations in this area remain.
When we look at the Arctic we really can’t wait until the last minute to ensure safe operations,” warns Kinsey. “These things need to be studied and developed in advance of wider use of the Northern Sea Route. We have to try and get away from the reactive mindset and get into the proactive mindset.”
was the second top cause of incident. Almost a third of incidents involved fishing vessels (130), while 17% involved cargo vessels (71).
Further details may be found by reading Allianz’s Safety and Shipping Review 2016
Source: Allianz
