Вештачка интелигенција

Digital Transformation: Reducing Risk and Enhancing Efficiency in the Maritime Industry

Summary

In the year leading up to Christmas 2022, ship owners received unpleasant but expected news: next year, they will face an increase in insurance premiums due to inflationary pressures that lead to higher costs of steel, spare parts, and labor. […]

Digital Transformation: Reducing Risk and Enhancing Efficiency in the Maritime Industry

In the year leading up to Christmas 2022, ship owners received unpleasant but expected news: next year, they will face an increase in insurance premiums due to inflationary pressures that lead to higher costs of steel, spare parts, and labor. This warning materialized, and during the latest policy renewals in February 2023, most P&I clubs raised their rates by approximately 10%.

One of the key factors contributing to the increase in premiums is inflation, as well as the heightened risk of hull and machinery failures due to the size of modern vessels. Container ships have increased by nearly 1,500% over the past few decades, but the number of crew members remains the same, creating more work and stress for seafarers. This, in turn, increases the chances of incidents occurring, which can lead to expensive and time-consuming claims processes, as larger ships generally carry higher risks.

Maritime companies strive to be as efficient and practical as possible when transporting goods worldwide. However, crew members face increasing workloads on today’s massive cargo vessels. This raises the risk of incidents, further contributing to a growing backlog in claims reporting and even higher costs for insurers. These costs are then passed on to shipping companies through increased premiums.

Data from the Nordic Association of Marine Insurers shows that the most expensive 1% of all claims accounts for at least 30% of the total value of claims in any given year. However, ship owners’ resources are usually depleted by a greater number of lower-value claims, such as cargo damage caused by leaking hatch covers or a fire triggered by a poorly reported container.

FAQ

Q: What are common incidents in the maritime industry?

A: Common incidents include loss of cargo due to adverse weather conditions, fatal falls from ladders, stowaways in control mechanism spaces, machinery malfunctions, collisions with other vessels, grounding, and pirate attacks on ships awaiting port entry.

Q: How can data sharing help prevent maritime incidents?

A: Data sharing can support loss prevention by helping to avoid incidents before they occur, facilitating the lives of ship owners and operators.

Q: How can technology reduce the risk of maritime incidents?

A: Technology can reduce the risk of maritime incidents by providing fleet teams with real-time insights into onboard operations, allowing them to identify and mitigate potential maintenance and safety risks.

Q: How can increased transparency between ship owners and insurers reduce premium costs?

A: Increased transparency between ship owners and insurers enables better communication and understanding of events, which can lead to reduced incident and insurance costs.

With the rise in premiums, the last thing ship owners need is the additional cost of reporting maritime incidents. Data sharing can support loss prevention by helping to avoid incidents before they occur. The use of technology is also an option for reducing the risk of maritime incidents. For example, implementing platforms with artificial intelligence can assist sailors and shippers in avoiding incidents by making onboard operations safer and more efficient.

Artificial intelligence technology also enables the crew and fleet managers to quickly determine the cause of maritime incidents. Establishing the cause is often challenging since many vessels have limited contact with shore-based teams after leaving port. With limited visibility into vessel operations, it is impossible to know what happened onboard when an incident such as a fire, pirate attack, or sinking occurred.

Artificial intelligence can solve this issue by alerting sailors and ship managers to onboard events, eliminating the need to search through 10,000 hours of footage for each ship every month in an attempt to retroactively determine what happened after the incident.

Proactive measures to reduce the likelihood of incidents are good practice for every ship owner or fleet manager. While it is impossible to completely avoid risks, it is entirely possible for ship owners and managers to streamline the process of reporting claims after an incident. Artificial intelligence technology enables them to achieve this quickly and efficiently.

Solutions to mitigate the risk of maritime incidents are already available to shipping companies today, but increasing their use is now the greatest challenge. It starts with understanding how to integrate simple yet intelligent systems into existing operations, recognizing how to use data to improve operations and maintain a more transparent culture between owners and insurers, where both parties recognize the shared value of providing an accurate version of events. Achieving this will not only help prevent maritime incidents but also ensure efficiency for shipping companies in managing the growing costs of incidents and insurance.

Source: [The Maritime Executive](https://www.maritime-executive.com/features/increased-hull-machinery-claims-threaten-insurers)