Home
FacebookTwitterSearchMenu
  • Subscribe
  • Subscribe
  • News
  • Features
  • Knowledge Library
  • Columns
  • Customs
  • Jobs
  • Directory
  • FX Rates
  • Contact us
    • Contact us
    • About Us
    • Advertise
    • Send us news
    • Editorial Guidelines

Status message

The requested resource isn't available. Please use the search feature to look for an alternative.
Logistics
Sea Freight

Positive market growth buoys marine insurance – underwriter

19 Sep 2024 - by Liesl Venter
 Source: Liesl Venter
0 Comments

Share

  • Facebook
  • Twitter
  • Google+
  • LinkedIn
  • E-mail
  • Print

Global cargo premiums rose by 6.2% in 2023, reaching $22.1 billion, according to the International Union of Marine Insurance (IUMI).

This sustained growth reflects several consecutive years of positive market development.

Additionally, cargo loss ratios – the difference between claims paid divided by total premiums –improved across many regions.

Although loss ratios typically increase over time, 2023 began with a notably lower baseline compared with previous years but, combined with stable and relatively low claims, this has created a favourable environment for cargo underwriters.

This increase demonstrated positive market development that has been sustained for a number of consecutive years.

In general, loss ratios tend to develop (ie increase) over time but the starting point for 2023 was significantly lower than in previous years.

This, coupled with relatively low and stable claims, has created a positive environment for cargo underwriters. 

“In general, the cargo market is healthy and in a good place,” said Mike Brews, chair of the IUMI cargo committee. 

“We appear to be in a good part of the cycle. Losses have improved over the past five years with major losses down year-on-year. It appears that carriers and operators are focusing much more on loss prevention which is good for all concerned, particularly those serving at sea.”

Brews, however, said a number of areas required careful monitoring, notably the change in global weather patterns.

Major storms were becoming a concern for all insurance classes but with marine bearing the brunt.

Marine cargo losses due to extreme weather events were no longer localised and resultant losses were starting to increase – this included static and in-transit cargoes.

Similarly, containers lost at sea were also on the rise.

International conflict also continued to be a concern with cargoes being affected as they transit high-risk areas such as the Red Sea and the Russia-Ukraine war zone.

Hijackings were also reported to be on the increase globally. 

The accumulation of risk on single vessels or in ports or other shoreside facilities was another issue underwriters needed to remain aware of.

“Multiple consignments will always gather in single locations and ever-larger vessels will always carry large high-value cargoes,” said Brews.

“But today, the market is much more aware of stocks and values and is cognizant of the potential risk. Our knowledge of the issue is so much better and so we can take steps to mitigate that particular risk.”

He added that insurance companies were paying more attention to their marine business than in recent years.

“Although marine is usually a small part of the overall portfolio, losses can be significant. Underwriting discipline is improving and companies are focusing on their loss ratios and not chasing business based on premiums alone. 

“This is good news and, as a result, the market appears to be moving in a positive direction.”

Sign up to our mailing list and get daily news headlines and weekly features directly to your inbox free.
Subscribe to receive print copies of Freight News Features to your door.

Saaff reacts positively to ports, rail and road announcement

Logistics

The decision serves to “prevent, mitigate and resolve bottlenecks and additional breakdowns”.

Yesterday
0 Comments

Durban port takes delivery of ship-to-shore cranes

Logistics

The port’s container terminal has invested approximately R1.5 billion in new equipment over the past 18 months.

Yesterday
0 Comments

Steep dip in ConCor line volume after derailment

Logistics

An update states that as a result, rail operations in and out of Durban were affected.

Yesterday
0 Comments

Rates storm looms as Suez eyes reuptake of volume

Logistics

A sudden rediversion of global traffic through the Suez Canal would unleash surplus tonnage back into regular trade lanes.

Yesterday
0 Comments

SA pork producers fear US leverage over citrus and tariffs

Imports and Exports

The primary responsibility remains the protection of the local industry from PRRS outbreaks.

Yesterday
0 Comments

Ramaphosa outlines second phase of Operation Vulindlela

Logistics

The government would deepen the implementation of current reforms in energy and logistics.

Yesterday
0 Comments

Carrier pulls out of crucial cargo flights for Red Sea destinations

Air Freight

Disruption is particularly acute in Sudan, where civil conflict has devastated infrastructure.

Yesterday
0 Comments

Proposed cabotage rules in line with 91 other countries

Sea Freight

“No ship, other than a South African-owned ship, is permitted to engage in coastwise traffic for the conveyance of goods between ports in SA.”

Yesterday
0 Comments

Fuel-crime curbing causes tanker build-up at Moz border

Border Beat
08 May 2025
0 Comments

Agri processing and farm logistics under spotlight at Nampo

Imports and Exports

More than 200 light aircraft, including helicopters and small twin-prop planes, are expected to fly in.

08 May 2025
0 Comments

Saudi Arabian operator evaluates Port of Durban investment

Logistics

The brownfield development opportunity in Maydon Wharf spans 145 hectares and features 15 berths.

08 May 2025
0 Comments

Preferred bidders for Port of RB’s South Dunes Precinct announced

Logistics

TNPA said it forms part of its masterplan for ports in KwaZulu-Natal.

08 May 2025
0 Comments
  • More

FeatureClick to view

Sea Freight May 2025

Border Beat

Fuel-crime curbing causes tanker build-up at Moz border
08 May 2025
Border police turn the tide on illegal crossings
29 Apr 2025
BMA officials arrested for enabling illegal immigration
24 Apr 2025
More

Featured Jobs

New

Transport Clerk (DBN)

Tiger Recruitment
Durban (New Germany)
09 May
New

Operations’ Coordinator

Brinks Security PTY LTD
Johannesburg
09 May

Cost Estimator - Durban North

Lee Botti & Associates
Durban
07 May
More Jobs
  • © Now Media
  • Privacy Policy
  • Freight News RSS
  • About Us
  • Advertise
  • Send us news
  • Contact us