Safer Shipping for Container Vessels

Adobe photostock: Container ship at sea// Buque portacontenedores en el mar

AUTHOR Brookes Bell

The fortunes of the container shipping sector can best be described as mixed. From an earnings perspective, the market is riding high, and carriers are experiencing profit margins they could only have dreamt about a few years ago. However, the effects of COVID have conspired to cause unprecedented delays in the container supply chain resulting in port congestion in many parts of the world. Terminal operations have been impacted by the pandemic as well as the availability of the “last mile” truck and train operators, resulting in ships and containers suffering disruption and delays. A further consequence is the long turnaround times for loaded containers meaning lengthy delays in getting empty containers back into circulation.

Despite this, a more systemic issue lies in the industry’s appetite to build ever larger vessels. Whilst this brings the advantages of economies of scale, it has also laid bare the increasing and everpresent likelihood of catastrophe in the form of risk accumulation, onboard fires, and large container spills.

Big ships can equate to big risks. Aside from the ever-present and tragic potential for injury and loss of life, these ultralarge container vessels are extremely valuable. A 24,000 TEU vessel is likely to be insured on an H&M basis for around $150 million, but the cargo will be valued at eight or nine times that amount giving a total value of approaching