One vessel in the Great Lakes region of North America claimed the title of unluckiest ship. AGCS's analysis showed it reportedly had been involved in 19 incidents in the past eight years – including six in one year. It suffered a fire, engine failure, steering failure, and even hit a submerged log, according to AGCS.

AGCS said that although the long term downward trend in shipping losses was encouraging, recent casualties such as Sewol and Norman Atlantic once again have raised significant concerns over training and emergency preparedness on passenger ships three years after the Costa Concordia disaster. Seven passenger ships were lost during 2014, accounting for almost 10 percent of total losses. “In many cases construction of the vessel is not the only weak point. These two incidents underline a worrying gap in crew training when it comes to emergency operations on ro-ro ferries or passenger ships,” said Sven Gerhard, global product leader for hull and marine liabilities at AGCS.

The general shipping trend for smaller crews meant seafarers were being asked to do more with less. Minimum manning levels reduced the ability to train people onboard, which could provide invaluable insight and should not become the normal day-to-day level for safe operations, AGCS said.

AGCS added that container ship safety also was under the spotlight with ever-increasing ship sizes, as evidenced by the January 2015 inauguration of the world's largest container ship, the MSC Oscar (19,224 teu). The length of four football pitches, it can carry 19,000 containers. Yet ships as large as 22,000 teu were expected to be in service soon. “Larger ships can also mean larger losses. The industry should prepare for a loss exceeding $1 billion in future featuring a container vessel or even a specialized floating offshore facility,” Mr. Gerhard said. Maximum exposure would not necessarily be limited to vessel and cargo value but also could include environmental or business interruption backlash. AGCS said that this raised concerns about whether risk management needed reviewing after a more than 80 percent container ship capacity increase in a decade.

AGCS said there were a number of risks for such mega-ships, including the fact operation was limited to a small number of deep water ports, meaning an increased concentration of risk. There is also a worldwide shortage of qualified seaman. Salvage and removal also is challenging. As the wreck removal of the Costa Concordia passenger ship demonstrated, such costs easily can be a multiple of the hull value, according to AGCS. “The shipping industry should think long and hard before making the leap to the next ship size,” added Captain Rahul Khanna, global head of marine risk consulting at AGCS.

AGCS pointed out that cyber risks represented another new threat for a shipping sector that is highly interconnected and increasingly reliant on automation. “Cyber risk may be in its infancy in the sector today, but ships and ports could become enticing targets for hackers in future. Companies must simulate potential scenarios and identify appropriate mitigation strategies,” said Captain Khanna. “A cyber-attack targeting technology on board, in particular electronic navigation systems, could possibly lead to a total loss or even involve several vessels from one company,” said Mr. Gerhard. Other scenarios include cyber criminals targeting a major port, closing terminals, or interfering with containers or confidential data. Such attacks also could result in significant business interruption costs, notwithstanding liability or reputational losses.

AGCS pointed out that the shipping industry has welcomed the recent arrival of the Polar Code which aims to curb risks from increased traffic in the Arctic and Antarctica. AGCS's analysis showed there were 55 reported shipping incidents in Arctic Circle waters during 2014 including one total loss. There were just three in 2005. Although the code addresses many safety issues, questions remain, particularly around crew training, vessel suitability, and potential clean-up, AGCS pointed out. It added that the Polar Code will need constant revision and that any shipping problems encountered and best practices to employ should be outlined at the end of each season.

Other risks identified by AGCS in the 2015 Safety & Shipping Review include:

- Overreliance on electronic navigation: The collision of the cargo ship Rickmers Dubai with an unmanned crane barge in 2014 was an example of the perils of overreliance on e-navigation. Training standards around systems such as electronic chart display and information system (“ECDIS”) were mixed. “Officers need robust training in order to avoid misinterpretation of ECDIS and operating mistakes that could lead to expensive disasters. Beyond that manual navigation aids and skills are still crucial,” said Captain Khanna.

- Rise in geopolitical uncertainty: The recent rise in geo-political tension around the world is concerning. The increase in human trafficking of refugees by sea created search and rescue issues. More than 207,000 migrants crossed the Mediterranean in 2014, driven by the civil war in Syria. The International Maritime Organization estimated at least 600 merchant ships were diverted in 2014 to rescue people, stretching resources and rescue infrastructure. Conflicts in the Middle East also put increasing pressure on the supply chain. Ships should not underestimate the security risks.

- Piracy risks move from Africa to Asia: Although there had been progress tackling activity in Somalia and the Gulf of Guinea, ensuring global attacks (245) were down for a fourth year in a row, piracy thrived elsewhere. Attacks in South East Asian waters were up year-on-year, as were incidents in the Indian subcontinent, with Bangladesh a new hotspot.