Big-time Maritime Risks
The marine industry is one colossal business with players that exist worldwide. There are different laws governing each country for the different shipping subsidiaries and there are varying degrees of maritime risks that need to be addressed as well.
The maritime risks involved vary with every port and also depends on the kind of business a company is engaged in. However, these risks are far more threatening than those business that are based on land. There are so many unpredictable factors at sea, which is why marine insurance should always be in place.
Here are some of them.
Common Maritime Risks
There is just nothing that people can do when Mother Nature unleashes her fury. Maritime companies suffer very large losses when even just one natural catastrophe will strike. The severe weather-related events are also becoming more frequent in recent years.
In the past, this problem was non-existent. But with the digital age, cyber risks are now considered one of the top threats in the shipping industry. Computer systems on board the ships are self-contained, however, they are also vulnerable to inside threats. Companies stand to lose hundreds of millions of dollars in these attacks.
Data from the shipping industry records that human error accounts for an average of 80% of marine accidents. With this threat, many companies are considering to invest in autonomous ships that could be used move cargo more safely and reduce loss of human lives.
The Expanding Arctic Routes
Sea traffic along the Arctic continue to remain limited due to changing climactic conditions. Some Arctic ice continues to melt and this might allow a shortcut between the Atlantic and Pacific Ocean ports. But some companies could not possibly wait for these natural routes to open so they needed to make investments in newer ships that will allow them passage through these icy waters.
Perhaps the biggest and longest-running threat to the maritime industry is the existence of pirates. Despite the dramatization of piracy in movies, it is a real danger that has cost the industry so much money.
With all these threats to the maritime industry, marine insurance is a must to all players. Companies should be alert and prepared, as we don’t know when these threats can turn into reality. The ships, cargo, and of course, the crew should be covered for any eventuality in order to protect the business and all its assets.
It should also be noted that old policies should be reviewed and new clauses be added to include updated threats. Marine insurance should be part of every maritime industry practitioner in order to maintain a viable business. You may contact Malayan Insurance insurance company in the Philippines for possible marine coverage.