With 90 percent of international trade transported via the world's oceans, maritime security and stable shipping routes are of crucial importance. According to the latest Safety and Shipping Review by Allianz Commercial, incidents such as the blockade and reported mining of the Strait of Hormuz are the latest in a series of disruptions that have affected shipping. They signify the transition to a 'new maritime order', characterized by increasing security risks along strategic sea routes. Established trade routes are being disrupted, general uncertainty and risk premiums are rising, and the need to build resilience over mere cost efficiency is coming to the forefront.
In addition to geopolitical uncertainty, traditional risks remain a significant issue for the shipping industry, even though the number of total ship losses and reported accidents has continued to decline in recent years. Machinery damage or failures, as well as fires, remain key causes of damage, leading to considerable economic and insured losses. 'Our analysis shows that the shipping industry has made significant progress in maritime safety in recent years. However, it has also undergone a fundamental change—from decades of relative stability to an increasingly complex and volatile environment. The conflict in the Middle East and the closure of the Strait of Hormuz are just the latest in a series of major disruptions affecting shipowners and freight companies. Resilience, geopolitics, and efficiency must be balanced in an increasingly unpredictable world, where the costs of uncertainty are reshaping the shipping industry,' explains Thomas Lillelund, CEO of Allianz Commercial.
Geopolitical uncertainty is becoming the top risk for the shipping industry.
The conflict in the Middle East has brought traffic in the Strait of Hormuz, a key global route for oil trade, to a standstill. Data from Allianz Research shows approximately 1,150 loaded ships (over 100 Gross Tonnage (GT)*) with an estimated ship and cargo value of around 125 billion USD, a volume of 29 million GT, and 20,000 seafarers are in the Persian Gulf. They are waiting to cross the passage following recent diplomatic breakthroughs. This underscores the structural significance of maritime chokepoints and their central role in shipping and international trade. At the same time, it highlights the significant disruptions to ship operations and the psychological strain on those seafarers who have been exposed to attack risks while on board for months.
Marine insurance remained available throughout the entire conflict, albeit at higher premiums for hull and cargo coverages. However, for shipowners, the real challenge was less about insurance issues and more about the risk to crew and vessels in the conflict zone. Even if the agreement between the USA and Iran holds and the Strait of Hormuz is reopened, reliable assurances for a safe passage are required. This includes the involvement of the international community, especially if traffic is to reach the pre-conflict level of up to 140 ships per day again. 'We are seeing growing uncertainty around shipping routes. Any type of event—a conflict, a pandemic, or a grounded ship—has the potential to significantly disrupt shipping and supply chains. The events in the Middle East have had greater impacts than many expected. The closure of the Strait of Hormuz creates a dangerous precedent and raises questions about the long-term future of other critical chokepoints. It is clear: We must pay a price for uncertainty —with a shift from just-in-time to just-in-case supply chains and a stronger prioritization of resilience over cost efficiency,' says Captain Rahul Khanna, Global Head of Marine Risk Consulting at Allianz Commercial.
Number of total losses and incidents at sea decreases despite headwinds for the industry.
The latest report shows that more than 900 total losses were reported in the past decade (ships over 100 GT). Between 2016 and the end of 2020, there were 555, an average of 111 per year. This number fell to 350 between 2021 and the end of 2025, an average of 70 per year. This represents a 37 percent decrease compared to the previous five-year period, reflecting the positive impact of increased focus on safety measures. For 2025, 43 total losses were reported, including more than 30 ships over 500 GT.
Globally, the number of shipping incidents dropped by around 16 percent last year (2,818 in 2025 versus 3,353 in 2024). The Eastern Mediterranean and Black Sea region recorded the highest number (622), followed by the British Isles (619), where most incidents over the past decade occurred. Machinery damage or failures were the leading cause of shipping incidents worldwide, accounting for more than half (1,505), followed by ship collisions (260). Fires on large ships, including container ships and car carriers, remain a problem. More than 200 incidents were reported in 2025—fewer than in 2024, but still the second-highest figure of the past decade, with at least nine reported total losses.
The increasing size of ships drives the trend toward higher damage claims, where shipowners and cargo interests share losses or expenses to save the entire venture in an emergency. Such claims are typically complex and high. Contributions to cover losses can amount to up to 50 percent of the cargo value—which, for a ship carrying several thousand electric cars, for example, can easily exceed 100 million USD. 'Insurance markets respond quickly to crises. The real challenge for companies is understanding how risks are interconnected. Therefore, resilience and risk management are as important as traditional insurance coverage. The shipping industry faces turbulent times—not only due to geopolitical instability but also traditional hull and machinery risks, where we continue to see rising damage costs. Our role as insurers is to support our clients both as risk carriers and as partners in building resilience. This allows us to minimize risks before they become costly events,' says Justus Heinrich, Global Product Leader Marine Hull at Allianz Commercial.
*Further details on the analysis and the underlying assessment assumptions can be found in the report.
Press contact:
Allianz Suisse
Nadine Schumann, Media Spokesperson
press@allianz.ch, Tel. 058 358 84 14
Allianz Commercial
Andrej Kornienko, Regional Head of Communications Germany & Switzerland (GER/SUI)
andrej.kornienko@allianz.com, Tel. +49 171 4787 382