Race Against Weather


Instead of slowing down or navigating around water, today’s larger vessels are able to sail through more severe storms, creating the risk of greater cargo losses.


“The idea of having a vessel that’s not moving as fast as it should or not making schedule, really creates some problems economically for the vessel operator.”


Sean Dalton, Zurich


Vessels make money when they are full and moving. Unlike smaller ships from a couple of decades ago, today’s larger ships do not slow down or change routes because of a storm. They sail right through them. Consequently, insurers see a spike in overboard container losses in winter months or during hurricane or typhoon season. While the problem is not chronic — in fact frequency has gone down greatly — it could be one factor contributing to the lack of profitability in the global cargo insurance business.


Copyright © 2011 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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