The growth of the "phantom fleet”, developed in particular by Russia and its allies to evade oil sanctions, “represents a new threat” to other ships and to the environment, worries German insurer Allianz, in a study published on Wednesday.
“This fleet, the size of which varies according to estimates, could number up to 600 vessels,” the insurer warned in a written statement. Allianz' head of marine insurance products Justus Heinrich stressed that these vessels are thought to be "ageing and poorly maintained ships sailing under flags of convenience”.
The increase in this phantom fleet could lead to a major incident and “cause loss of life and uninsured pollution or other environmental damage”, Heinrich explains. These concerns come just weeks after an uninsured tanker built in 1997 caught fire off the coast of Malaysia, with several sailors dying in the blaze.
The insurer also fears the increased risk of fire, in particular when transporting Li-ion batteries. This cargo has been known to catch fire, with the blaze difficult to extinguish and prone to spontaneously reigniting.
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Allianz cautions that the price of shipping is falling, meaning that less is spent on the ships themselves: "coupled with the prospect of an economic slowdown, this will have an impact on maintenance and risk management budgets”, it warns. “This has already happened in the past, leading to an increase in claims and incidents related to machinery degradation."
Despite these risks, the number of ships lost in 2022 stood at 38 – the lowest figure for ten years.
