Global cargo premiums increased 6.2% last year to $US22.1 billion ($32.2 billion), the International Union of Marine Insurance (IUMI) says. 

Cargo committee chair Mike Brews has told the group’s annual conference in Berlin that the market appears to be “in a good part” of the cycle. 

“Losses have improved over the past five years with major losses down year-on-year,” he said. “It appears that carriers and operators are focusing much more on loss prevention, which is good for all concerned, particularly those serving at sea.” 

Mr Brews warned the change in global weather patterns and major storm impacts required careful monitoring, with marine cargo losses due to extreme weather events no longer localised and resulting losses, including from static and in-transit cargoes starting to increase. Containers lost at sea is also on the rise. 

International conflict continued to be a concern with cargoes affected as they transit high-risk areas such as the Red Sea and the Russia/Ukraine war zone. Hijackings were also reported to be on the increase globally. 

Mr Brews said underwriters have become much more aware of accumulation of risk on single vessels or in ports or other shoreside facilities and increased awareness would assist with mitigation. 

“Underwriting discipline is improving and companies are focusing on their loss ratios and not chasing business based on premiums alone,” he said. “This is good news and, as a result, the market appears to be moving in a positive direction.”