Escalating safety risks on strategic corridors and disruption of established trade routes are ushering in a "new maritime order" for the shipping industry, according to a new report from Allianz.
While vessel losses and safety hazards have declined in recent years, incidents like the closure of the Strait of Hormuz this year are creating new challenges and uncertainties.
"Our analysis shows the shipping industry has made significant improvements in maritime safety in recent years," said Thomas Lillelund, CEO of Allianz Commercial, in a statement. "However, it has also undergone a fundamental transformation, from decades of relative stability, defined by steady trade flows and largely predictable operating conditions to becoming increasingly complex and volatile. The Middle East conflict and Strait of Hormuz closure is just the latest in a series of severe interruptions to hit shipowners and cargo operators."
According to Allianz data, roughly 1,150 cargo vessels with an estimated vessel and cargo value of $125 billion and about 2,000 seafarers are currently in the Persian Gulf, waiting for operations to resume after recent diplomatic talks.
Though marine insurance cover has been available during the conflict, it has come with higher hull and cargo premiums as well as increased risk for vessels and their crews.
"The closure of the Strait of Hormuz sets a dangerous precedent and raises questions around the long-term future of this and other critical chokepoints," said Captain Rahul Khanna, global head of marine risk consulting at Allianz Commercial, in a statement. "What is becoming clear is that we have to pay a price for uncertainty, shifting from 'just-in-time' to 'just-in-case' supply chains, and prioritizing resilience over cost efficiency."
On the bright side, the report found that the number of shipping safety incidents declined in 2025 by about 16%. Machinery damage or failure was the top cause, accounting for more than half of incidents globally. Vessel collision was the second most common cause.
Fires on large vessels are still a concern. More than 200 incidents were reported on vessels during 2025, the second highest total over the last decade. Nine of the incidents resulted in total losses.
Photo credit: EvrenKalinbacak/Adobe Stock
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.