Piracy attacks in Indonesian waters have increased 700% in the past five years, raising risks for Australian businesses, according to a report by Allianz Global Corporate & Specialty.

“The shift of the piracy focus from the Gulf of Aden to a new hotspot in Indonesia should be of concern to all businesses in the Pacific region involved in international trade, because all shipping between the region and Asia has to transverse these waters,” Regional Marine Manager for the Pacific Ron Johnson says.

The development of “mega-ships” is also creating new risks and posing issues for Australia, according to the report.

Last year the world’s largest container ship, the Emma Maersk, was unable to unload cargo after it sustained damage in the Suez Canal, because it was too large for nearby ports.

“Given Australia’s large coastline, and limited ports of refuge and repair facilities to handle such vessels, the arrival of these mega-ships could heighten the risk to cargo owners,” Mr Johnson says.

The largest container ship on record, the Maersk McKinney Moller, is more than 400 metres long, with a capacity of more than 18,000 shipping containers, measured in 20-foot equivalent units (TEU).

Vessels with a capacity of up to 24,000 TEU are expected to come into service in 2018, Mr Johnson says.

Emerging shipping risks include the rise of alternative fuels such as liquefied natural gas being carried by sea and increasing use of Arctic trading routes.