Marine insurers are expressing growing concerns over the global shipping fleet's increasing average age. This trend is primarily attributed to vessel owners postponing the decommissioning of older ships, leading to a fleet that is, on average, older than in previous years. The deferral of scrapping is creating a landscape where the likelihood of mechanical breakdowns, structural issues, and other incidents is perceived to be higher.
For freight forwarders and shippers, this development could translate into several impacts. An older fleet may experience more frequent operational disruptions, leading to delays in cargo delivery and potential schedule unreliability. Furthermore, the heightened risk profile could result in marine insurers adjusting their premiums upwards, directly affecting the cost of cargo insurance and overall shipping expenses. Operations managers might need to factor in increased transit times or potential diversions when planning routes, especially for time-sensitive or high-value cargo. The availability of suitable vessels might also become a consideration if older ships are deemed less reliable for certain types of freight.
