Loss log: Arctic shipping

The number of vessels sailing in Arctic waters continues to rise with growing commercial interest in the region, and climate change. The number of unique ships entering the Arctic Polar Code area from 2013 to 2023 increased by 37%, around 500 ships, according to the Arctic Council [1]. Later this year, the Northern Sea Route [2] is slated to see its first-ever Panamax container vessel after a 5,000 teu box ship received a permit to transit what is one of several Arctic shipping routes.

Challenging Arctic conditions can pose different risks to vessels, crews, and the environment, however. Waters can be harsh, with the threat of sea ice and hazardous weather, while the region’s remoteness means limited access to infrastructure if a vessel runs into problems. For example, a cruise ship that ran aground in Greenland in September 2023 could not be towed free for three days [3].

Allianz Commercial analysis of shipping incidents in Arctic waters over the past decade (January 1, 2014, to December 31, 2023) shows there have been more than 500 (531) reported during this period (see graphic), with 50 occurring in the last year. The harsh operating environment means machinery damage/failure is the most frequent cause of incidents, accounting for almost half of this total (261).