Shipping - facts and figures
Globalization and international trade
Shipping and the global economy
The world fleet and modern ships
Shipping and sustainable development
The work of the International Maritime Organization IMO
List of tables
Growth in world seaborne trade
World seaborne trade by country groups (percentage share of
tonnage)
World seaborne trade in ton-miles, selected years (billions of
ton-miles)
Estimates of total freight cost in world trade
World trading fleet by ship types
Age distribution
Calls by region
Top twenty maritime countries
Top twenty largest shipping flags
World Container fleet
Ships total losses by number (ships over 100 GT)
Loss of ships subject to IMO Conventions
Lives lost
Estimated total number of passengers and seafarers
Number of ships and
lives lost due to piracy and armed robbery
Shipping and the environment
Ratio of oil (cargo and bunkers) discharged into the sea to
total quantities carried by sea
Supply of seafarers by area of domicile
We live in a global society which is supported by a global economy – and that economy simply could not function if it were not for ships and the shipping industry. Shipping is truly the lynchpin of the global economy: without shipping, intercontinental trade, the bulk transport of raw materials and the import/export of affordable food and manufactured goods would simply not be possible.
Today’s world fleet is registered in over 150 nations and is manned by over a million seafarers of virtually every nationality. Shipping is perhaps the most international of all the world's great industries and one of the most dangerous. It has always been recognized that the best way of improving safety at sea is by developing international regulations that are followed by all shipping nations. Regulating the maritime industry to promote safety and security and prevention of pollution from ships worldwide has been the function of the International Maritime Organization since its inception in 1959. The work of IMO is well documented through its numerous conventions and codes and on the Organization's website.
Of all the sectors that make up the global transport infrastructure, shipping probably has the lowest public profile and the least representative public image. Its importance is not well known although not a single area of our life remains unaffected by it.
The IMO Council at its 93rd session in November 2004 endorsed the proposal of Secretary-General Mr. Efthimios Mitropoulos that the theme for World Maritime Day 2005 would be "International Shipping - Carrier of World Trade". The theme was chosen to provide an ideal opportunity to draw attention to the vital role that shipping plays in underpinning the international economy and its significant contribution to international trade and the world economy as the most efficient, safe and environmentally friendly method of transporting goods around the globe.
Similarly shipping organisations such as the Round Table of International Shipping Associations (BIMCO/Intercargo/INTERNATIONAL CHAMBER OF SHIPPING (ICS)/INTERNATIONAL SHIPPING FEDERATION (ISF), Intertanko have recently concentrated their effort to promote the public image of shipping.
Globalization and international trade
It may seem obvious to say that, today, we live in a global world, and it is certainly true that international trade among all the nations and regions of the world is nothing new. From the Phoenicians, through the Egyptians, the Greeks and the Carthaginians, the Chinese, the Vikings, the Omanis, the Spaniards, the Portuguese, the Italians, the British, the French, the Dutch, the Polynesians and Celts, the history of the world is a history of exploration, conquest and trade by sea.
But there is no doubt that we have now entered a new era of global interdependence from which there can be no turning back. In today’s world, national boundaries offer little impediment to multi-national corporations: cars with far-eastern brands are not only sold but also assembled in Europe, while European brands are assembled and sold in North America; “western” energy companies invest millions of dollars in Asia and the Far-East and the strategy and investment decisions they make can affect millions of people all over the world.
The high-flyers of the business world can cross oceans in just hours, communicating by e-mail and telephone as they go. In the financial markets, brokers and traders have thrown off the constraints of time zones and distance and now access the world markets via computer. In the 21st century, industries such as computer software, media and fashion have no obvious geographical dimension and recognise no physical boundaries. In today’s consumer world, the same brands are recognised, understood and valued all over the world.
The process of globalization and the factors that have enabled it to evolve were recognized by the Secretary-General of the United Nations, Mr. Kofi Annan, in 2000. He observed, “Globalization has been made possible by the progressive dismantling of barriers to trade and capital mobility, fundamental technological advances, steadily declining costs of transport, communication and computing. Its integrative logic seems inexorable, its momentum irresistible.”
Looking back into history, we can trace the stages through which we have progressed to arrive at this new world order. There was a time when, for any given community, the most important raw materials, the most important products and the most important markets were essentially local. But, as interaction between communities grew, trade developed and regional specialities, often founded on the availability of particular raw materials or on saleable skill-sets that had been developed over time, began to emerge.
As the world became more developed, proximity to raw materials and to markets became the factors that, above all others, shaped the world’s economy and, in particular, the major trade patterns and shipping routes.
Eventually, the great seaborne trades became established: coal from Australia, Southern Africa and North America to Europe and the Far East; grain from North and South America to Asia, Africa and the Far East; iron ore from South America and Australia to Europe and the Far East; oil from the Middle East, West Africa, South America and the Caribbean to Europe, North America and Asia; and now we must add to this list containerized goods from China, Japan and South-east Asia to the consumer markets of the western world. Global trade has effectively permitted an enormous variety of resources to be more widely accessible and has thus facilitated the widespread distribution of our planet’s common wealth.
Today, international trade has evolved to the point where almost no nation can be fully self-sufficient. Every country is involved, at one level or another, in the process of selling what it produces and acquiring what it lacks: none can be dependent only on its domestic resources.
Global trade has fostered an interdependency and inter-connectivity between peoples who would previously have considered themselves completely unconnected. The potential benefits are clear: growth can be accelerated and prosperity more widespread; skills and technology can be more evenly dispersed, and both individuals and countries can take advantage of previously unimagined economic opportunities.
Shipping has always provided the only really cost-effective method of bulk transport over any great distance, and the development of shipping and the establishment of a global system of trade have moved forward together, hand-in-hand. Those with access to natural resources; those with the ability to convert those resources into useful products for the good of mankind; and those with a requirement and the wherewithal to utilize and consume those end products are all joined by the common thread of shipping. The eternal triangle of producers, manufacturers and markets are brought together through shipping. This has always been the case and will remain so for the foreseeable future.
Shipping and the global economy
More than 90 per cent of global trade is carried by sea. It is almost impossible to quantify the value of volume of world seaborne trade in monetary terms: however, the United Nations Conference on Trade and Development (UNCTAD) estimates that the operation of merchant ships contributes about US$380 billion in freight rates within the global economy, equivalent to about 5% of total world trade.
Shipping trade estimates are usually calculated in ton-miles – a measurement of tons carried, multiplied by the distance travelled. In 2004, for example, the industry shipped around 6.76 billion tonnes over a distance of about 4 million miles, resulting in a staggering total of 27,635 billion ton-miles of trade.

Throughout the last century the shipping industry has seen a general trend of increases in total trade volume. Increasing industrialization and the liberalization of national economies have fuelled free trade and a growing demand for consumer products. Advances in technology have also made shipping an increasingly efficient and swift method of transport. Over the last four decades, total seaborne trade estimates have more than quadrupled, from less than 6 thousand billion ton-miles in 1965 to the latest full-year figure of over 27 thousand billion ton-miles in 2004.
As with all industrial sectors, however, shipping is not immune to occasional economic downturns – a notable fall in trade occurred, for example, during the worldwide economic recession of the early 1980s. However, although the growth in seaborne trade was tempered by the Asian financial crisis of the late 1990s, there has generally been healthy growth in maritime trade since 1993. Overall, between 1980 and 1999, the value of world trade grew at 12% per year, while total freight costs, during the same period, increased by only 7%, demonstrating the falling unit costs of marine transportation. In 2004 world output grew by 4.1 per cent; world seaborne trade reached 6.76 billion tons of loaded goods an increase of 4.3 per cent.
World container port traffic expanded by 9.6 per cent over that
of the previous year, reaching 303.1 million TEUs (20-foot equivalent units),
with ports of developing countries handling 122.4 million TEUs, or 40.4 per
cent of the total.
World seaborne trade by country groups (percentage share of tonnage, 2005)

Source: Compiled by the UNCTAD Secretariat, Review of Maritime Transport, 2005.
World seaborne trade in ton-miles, selected years (billions of ton-miles)
| Year | Oil | Iron ore | Coal | Grain* | Five main dry bulks | Other dry cargoes | World total | ||
| Crude | Products | Crude plus products | |||||||
| 1970 | 5597 | 890 | 6487 | 1093 | 481 | 475 | 2049 | 2118 | 10654 |
| 1975 | 8882 | 845 | 9727 | 1471 | 621 | 734 | 2826 | 2810 | 15363 |
| 1980 | 8385 | 1020 | 9405 | 1613 | 952 | 1087 | 3652 | 3720 | 16777 |
| 1985 | 4007 | 1150 | 5157 | 1675 | 1479 | 1004 | 4480 | 3428 | 13065 |
| 1990 | 6261 | 1560 | 7821 | 1978 | 1849 | 1073 | 5259 | 4041 | 17121 |
| 2000 | 8180 | 2085 | 10265 | 2545 | 2509 | 1244 | 6638 | 6790 | 23693 |
| 2001 | 8074 | 2105 | 10179 | 2575 | 2552 | 1322 | 6782 | 6930 | 23891 |
| 2002 | 7848 | 2050 | 9898 | 2731 | 2549 | 1241 | 6879 | 7395 | 24172 |
| 2003 | 8390 | 2190 | 10580 | 3025 | 2810 | 1273 | 7454 | 7810 | 25844 |
| 2004 | 8910 | 2325 | 11235 | 3415 | 2965 | 1325 | 8065 | 8335 | 27635 |
Source: Fearnleys Review, 2004.
* Includes wheat, maize, barley, oats, rye, sorghum and soy beans.
Transport costs
The transport cost element in the shelf price of consumer goods varies from product to product, but is ultimately marginal. For example, transport costs account for only around 2% of the shelf price of a television set and only around 1.2% of a kilo of coffee.
Shipping
is truly the lynchpin of the global economy. Withou
t
shipping, intercontinental trade,
the bulk transport of raw materials
and the import/export
of affordable food and manufactured goods would simply not be possible.
Today’s world fleet is registered in over 150 nations and is manned by over a
million seafarers of virtually every nationality.
In the context of a global economy, the contribution made by shipping as a major industry in its own right is very significant, and increasingly so for the developing world. Maritime activity already provides an important source of income to many developing countries. Indeed, developing countries now lead the world in some of shipping’s most important ancillary businesses, including the registration of ships, the supply of sea-going manpower and ship recycling. They also play a significant part in shipowning and operating, shipbuilding and repair and port services, among others.
As seaborne trade continues to expand, it brings benefits for consumers throughout the world through low freight costs that are continuing to decrease in real terms. Thanks to the growing efficiency of shipping as a mode of transport and to increased economic liberalization, the prospects for the industry’s further growth continue to be strong.
Source: ISL Shipping Statistics Yearbook 2003
The world fleet and modern ships
The history of shipping is a glorious and proud one. There is no doubt, for example, that the magnificent square riggers of the era of sail or the early 20th century’s prestigious ocean liners could stir the hearts of all those that beheld them. But the ships of today are just as worthy of our admiration, for shipping today is in another truly golden age. Ships have never been so technically advanced, never been so sophisticated, never been more immense, never carried so much cargo, never been safer and never been so environmentally-friendly as they are today.
Mammoth containerships nudging the 10,000 TEU barrier yet still capable of 25 knot operating speeds; huge oil tankers and bulk carriers that carry vast quantities of fuel, minerals, and grain and other commodities around our planet economically, safely and cleanly; the complex and highly specialized workhorses of the offshore industry; and the wonderful giants of the passenger ship world are all worthy of our greatest admiration.
In shipping today we can see many marvels of state-of-the-art engineering and technology that deserve to be ranked alongside the very finest achievements of our global infrastructure. We all marvel at the wonders of the modern world – skyscrapers, bridges, dams, ship canals, tunnels and so on. Although they all deserve our admiration, there should be no question that today’s finest ships are also worthy of the sort of recognition usually reserved for the great icons of land-based civil engineering – with one substantial difference in favour of the former: while skyscrapers, bridges, dams et al are static structures designed to withstand the elements coming to them, the very essence of vessels sends them out to sea to face the elements at full force, alone in the vastness of the ocean. They should, therefore, be robust when built and maintained as such throughout their entire lifetime.
Ships are high value assets, with the larger of them costing over US $100 million to build. They are also technically sophisticated: you are more likely to find one of today’s modern vessels being controlled by a single joystick and a mouse-ball in the arm of the helmsman’s seat than by a horny-handed bosun grappling with a spoked wheel; the chief engineer will probably have clean hands and the calluses on his or her fingers will be from tapping a keyboard rather than wielding a spanner. The crew accommodation will be clean, light and airy with modern recreation facilities; the food will be good; and you may well find the first officer exchanging emails with his family at home via the satellite communication system. Ships today are modern, technologically advanced workplaces and the work of the International Maritime Organization (IMO) has played, and continues to play, an important part in shaping that environment.
The UNCTAD Review of Maritime Transport 2005 states that worldwide fleet expansion in 2004 continued at a pace of 4.5 per cent. As at 1 January 2005, the world trading fleet was made up of 46,222 ships, with a combined tonnage of 597,709,000 gross tonnes. The vast bulk of the fleet was made up of: general cargo ships (18,150), tankers (11,356), bulk carriers (6,139), passenger ships (5,679) and containerships (3,165). Other ship types accounted for 1,733 vessels.
The share of the developing-country fleet reached 22.6 per cent, or 202.3
million dwt (deadweight tons), at the beginning of 2005. About 77 per cent of
this fleet belongs to developing countries in Asia. The net increase of
developing countries´ fleet was 20.9 million dwt, more than four times the net
increase of the fleet of major open-registry countries, which increased by 4.5
million dwt. The worldwide merchant fleet increased by 38.8 million dwt to a
record 895.8 million dwt.
World trading fleet by ship types
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World trading Fleet by ship types As at January 1st 2005, the world trading fleet was made up of 46,222 ships, with a combined tonnage of 597,709,000 gross tonnes. Figures in brackets are numbers of ships. Source: Lloyd's Register Fairplay January 2005 General Cargo ships (18,150) Tankers (11,356) Bulk Carriers (6,139) Passenger ships (5,679) Container ships (3,165) Other (1,733)
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Source: Lloyd's Register Fairplay January 2005 quoted in ShippingFacts
Ship registration
Registration of ships by developed market economy countries and major-open registry countries account for 27 and 41% of the world fleet respectively. Two thirds of the beneficially owned fleet is owned by market-economy and developing countries. The share of developing countries is 22.6% or 202.3 million dwt, of which 155.9 million dwt is registered in Asia (Review of Maritime Transport 2005).
Tonnage distribution of open-registry fleets
The UNCTAD Review of Maritime Transport 2005 indicates that the tonnage distribution of the six major open-registry countries (Panama, Liberia, Bahamas, Malta, Cyprus, Bermuda) amounts to 364,836 million DWT
Age distribution of the world merchant fleet
The average age of the total world fleet is 12.3 years (UNCTAD Review of Maritime Transport, 2005)
About 27.3% is 20 years and older.
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All ships 12.5 years
Tankers: 10.9 years Bulk carriers: 12.9 years General cargo : 17.4 years Container ships: 9.2 years All others: 15.8 years
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Movements of the Merchant Fleet by Region

Source: Based on figures published in Lloyd's Maritime Atlas of World Ports and Shipping Places. 23rd edition. T&F Informa UK, 2005
Top 20 most important maritime countries and territories
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Top 20 maritime countries Based on total deadweight tonnage controlled by parent companies located in these countries. Figures in brackets represent percentage of world fleet. Source: UNCTAD Review of Maritime Transport 2005.
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Top 20 largest shipping flags
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Top 20 largest shipping flags as at December 2004
Figures in brackets are millions of gross tonnes of shipping registered in the countries listed. Source: Lloyd's Register- Fairplay.
1. Panama (131.4) 2. Liberia (53.8) 3. Bahamas (35.3) 4. Greece (32) 5. Singapore (26.2) 6. Hong Kong (China) (26) 7. Marshall Islands (22.4) 8. Malta (22.3) 9. Cyprus (21.2) 10. China, People's Republic (20) 11. Norway (NIS) (15.4) 12. Japan (13.1) 13. UK (11.1) 14. Italy (10.9) 15. United States (10.7) 16. Russian Federation (8.6) 17. Germany (8.2) 18. Korea, Republic of (7.8) 19. India (7.5) 20. Denmark (DIS) (7.2)
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Although general cargo ships are still the largest single category, the trend among new ships is more and more in favour of specialization (although it could be argued that handy-sized, geared bulk carriers and versatile medium-sized containerships, of which some have the ability to accommodate several different box sizes as well as palletised cargo are the natural successors of the old general cargo vessels); indeed, it is interesting to note that, in a recent edition of the annual “Significant Ships” publication from the United Kingdom’s Royal Institution of Naval Architects, not a single one of the 50 selected for 2004 was a general cargo vessel. The general cargo vessels fleet size in 2004 was 92 048 000 dwt.
Tankers make up the second largest category. There are many different types of tanker, ranging from those carrying crude oil, through those built to transport various refined hydrocarbon products, to highly specialized ships that carry liquefied petroleum gas and natural gas. There are even tankers designed to carry cargoes such as fresh water, wine or orange juice. In size terms, the heyday of the tanker was the early 1970s, when the so-called Ultra-Large Crude Carriers (ULCCs), capable of lifting more than half a million tonnes of cargo, sailed the oceans. After the oil crisis of the 70s, tanker owners became a little more modest in their ambitions and, since then, most large modern tankers are in the 200-300,000 tonnage range. These are still massive vessels and enormously expensive to build, but today’s high price of oil means they can pay for themselves in a relatively short period of time/ The oil tanker fleet in 2004 amounted to 336 156 000 dwt.
The world’s largest ship today is a 564,765 dwt tanker with an interesting and varied history. She was built in 1976 and having undergone some work to increase her load-carrying capacity, was finally floated two years later and named Seawise Giant.
At first, she operated in the Gulf of Mexico and the Caribbean Sea, but was then used for exporting oil from Iran during the Iran-Iraq War. In 1986, she was attacked but not sunk in the Strait of Hormuz and at the end of the war in 1989 she was repaired and renamed Happy Giant. In 1991, she was renamed again, this time to Jahre Viking.
In March 2004, the ship was sold and sent by its new owner to be refitted as a floating storage and offloading unit. There, she was given her current name, Knock Nevis and plans have been made to operate her in the Al Shaheen oilfield in the waters of Qatar.
Perhaps more typical of the kind of large crude oil carrier being built today is the Irene SL, also built in Japan in 2004. Selected as one of the Naval Architect’s 50 “Significant Ships” of 2004, Irene SL has a design deadweight of just under 300,000 dwt, a double-hull construction and is capable of handling three different grades of oil simultaneously in her 15 cargo tanks. Her cargo and ballast control systems, including the operation of pumps, valves and ullage measurement are all computerized. For safety, inert gas is pumped into the cargo tanks when they are empty and, to comply with the most recent requirements on emissions, the ship is fitted with a scrubber system to clean the exhaust gas.
Bulk carriers are often called the workhorses of the international shipping fleet. They can be thought of as simple, relatively unsophisticated but nevertheless highly efficient vessels that typically transport commodities such as grain, coal and mineral ores. If tankers provide the fuel that powers the modern economy, bulk carriers are responsible for moving the raw materials that are its lifeblood.
In terms of size, the world’s bulk carrier fleet has three categories; ships of up to 50,000 dwt are known as “handy-sized”; ships of 50,000 to 80,000 dwt are known as “Panamax” (being the largest ships able to transit the Panama Canal) and ships of more than 80,000 dwt are known as “capesize”. Bulk carriers embrace a number of variations – single or double hull, with or without their own cargo-handling equipment – but all are characterized by the huge hatch covers that can be rolled or lifted away to reveal to cavernous holds beneath.
Because of the nature of the cargoes they carry – often heavy, high-density commodities – accidents involving bulk carriers have sometimes resulted in considerable loss of life. For this reason IMO has, over a long period of time, undertaken a great deal of work to improve the safety of this type of vessel. There is, for example, a special chapter on bulk carrier safety in the Safety of Life at Sea Convention ( SOLAS) , covering such topics as damage stability, structural strength, surveys and loading. In a casualty analysis undertaken recently by the International Association of Dry Cargo Shipowners – Intercargo– for bulk carriers for the ten years to 2001 it revealed that the number of ships, lives and tonnage being lost in this sector are all decreasing. Moreover, the report has specifically identified that IMO measures such as the Enhanced Programme of Inspections during Surveys and SOLAS chapter XII on bulk carrier safety, have reduced the risk of fatality on new and existing ships by 50 % and 25 % respectively.
The fleet size of bulk carriers amounted to 320 584 000 dwt in 2004.
Passenger ships come next in the world fleet league table. There are two basic categories – which can be summed up as “fun” or “function”. In the latter category are those which are designed to move people and, often, vehicles on regular itineraries from one place to another as quickly and cheaply as possible (ie ferries) and, in the former, those which the passengers see as a leisure destination in their own right (ie cruise ships). In both categories, the size, sophistication and the sheer number of passengers that can be carried have reached mind-boggling proportions. Because of their individuality, as well as their resonance with the great ocean liners of a bygone era, these ships tend to be the best known and most recognized among the general public at large.
One of the finest modern examples is the Queen Mary II , built in France for Carnival Corp’s Cunard in 2004. QM2 is the largest, longest, tallest, widest ocean liner ever and has cost an estimated $800 million dollars. She incorporates all the very latest international standards with regard to safety, security and environmental protection, offering her passengers an unparalleled opportunity to experience the wonders of ocean travel in the finest style.
With ships such as this, it is little wonder that, over the past ten or fifteen years, the cruise and passenger sector has become one of the industry’s most vibrant sectors and is now a major force within shipping, both in terms of technological development and commercial success.
The fleet size of ferries and passenger ships amounted to 5 589 000 dwt in 2004.
But the one sector which can be said to have transformed the face of shipping, certainly in the latter half of the 20th century, is that of container shipping. Unheard of before the 1960s, the container is now ubiquitous and is the standard unit of cargo for just about every form of manufactured item on the planet (there are exceptions: cars, for example, are transported in special ships designed solely for the purpose).
The Guinness Book of Records recognizes the OOCL SX class vessel, the Shenzhen, the world's largest containership. The vessel, operated by Orient Overseas Container Line, was launched on April 30, 2003, and carries 8,063 containers. Today’s giant containerships typically operate between purpose-built ports served by massive cranes that can load and unload containers at astonishing rates. Containership operators can offer fixed sailing schedules with tight delivery margins and these ships are now an integral part of the modern, multi-modal transport and logistics industry.
The world fleet of fully cellular container ships amounts to to 3,206 ships with a total capacity of 7,615,352 TEUs. In 2004 vessels of over-4,000-TEU capacity accounted for 74% of the order book; 165 vessels on order were larger than 7,500 TEU capacity- more than three times the current number of vessels above this size. The fleet of containerships in 2004 accounts for 10.9% of the total world fleet.
World container fleet (in thousand TEUs)
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End of the year |
World fleet |
Lessors fleet |
Sea carrier fleet |
|
2001 |
15,455 |
6,895 |
8,560 |
|
2002 |
16,405 |
7,465 |
8,940 |
|
2003 |
17,925 |
8,240 |
9,685 |
| 2004 | 19,310 | 8,830 | 10,480 |
Source : Containerisation International quoted in UNCTAD Review of Maritime Transport, 2005
The sea has always been a potentially hazardous and dangerous working environment. Yet, ship operators today have new factors and new pressures to contend with. The structure of the global marketplace requires that goods and materials be delivered not only to the geographical location where they are required but also within a very precise timeframe. Today, goods in transit are carefully factored-in to the supply chain and, as a result, the transportation industry – which embraces both shipping and ports – has become a key component of a manufacturing sector which sets its store by providing a complete “door-to-door” service.
As a consequence, safety and efficiency have now, more than ever before, become two sides of the same coin: accidents are not only undesirable outcomes in themselves; they also have a negative impact on the supply chain that is at the heart of the new global economy. Seen in this light, IMO’s responsibility to ensure the highest practicable, globally acceptable, standards that will improve maritime safety and security and, at the same time, help prevent marine pollution takes on a new dimension.
Shipping in the 21st century is the safest and most environmentally benign form of commercial transport. Commitment to safety has long pervaded virtually all deep sea shipping operations and shipping was amongst the very first industries to adopt widely implemented international safety standards.
From the mid-19th century onwards, a number of international maritime agreements were adopted. A treaty of 1863, for example, introduced certain common navigational procedures that ships should follow, when encountering each other at sea, so as to avoid collision, and was signed by some 30 countries. And the infamous Titanic disaster of 1912 spawned the first Safety of Life at Sea - or SOLAS - Convention, which, albeit completely modified and updated, and nowadays within the responsibility of IMO, is still the most important international instrument addressing maritime safety today, covering, among others, such areas as ship design, construction and equipment, subdivision and stability, fire protection, radiocommunications, safety of navigation, carriage of cargoes (including dangerous cargoes), safety management and maritime security.
Maritime incidents do, of course, unfortunately happen from time to time and, when they do, they may result in loss of life and damage to the environment. However, every occasion in which a ship – any ship – becomes involved in a pollution incident or a major casualty must be set against the literally billions of trouble-free, clean and economically efficient tonne-miles that shipping achieves every day, and all the consequent benefits that accrue from this activity.
Ships lost (ships over 100 gt)

The overall safety record of shipping has been improving steadily for many years. Take, for example, the numbers of ships lost in maritime casualties: according to casualty statistics produced by Lloyds Register of Shipping (and latterly by LR-Fairplay), between 1966 and 1985 there were never fewer than 300 ships lost annually. The worst years, 1978 and 1979, together saw 938 losses at a ration of 6.7 ships per thousand in the world fleet. In 1959, when IMO began, the ratio of vessels lost was running at 5 per thousand vessels. The number and percentage of losses began to dip significantly in 1980 and has continued on a downward curve ever since. In 1990, the number of annual losses dipped under 200, at 2.4 per thousand vessels. By 2000 the figure had further decreased to 167 at 1.9 per thousand ships. By 2004, the overall figure had approached the 100 mark.
In fact, relatively few ships actually sink at sea. The vast majority of so-called “losses” are actually those which are damaged and “written off” by the hull insurers as being beyond economical repair – described by underwriters as “constructive total losses”.
Furthermore, figures produced by the United Kingdom P&I Club, which insures around 20% of the world's ships, reveal similar reductions in insurance claims for third party liability, such as incidents involving personal injury, cargo damage, pollution or damage to property (e.g. other ships or port equipment). The decrease in the number of large claims is all the more significant given the increasing value of claims that are made.
Figures from the International Salvage Union also confirm that safety at sea has improved dramatically in recent years. According to them, the numbers of major ship casualties and significant pollution incidents have decreased sharply. In 1974 there were 26 oil spills in excess of 700 tonnes. In 2004, there were just five such spills.
As in all transport sectors, lives are sadly lost as a result of accidents. However, the loss of life in shipping is in fact relatively modest and the overall trend is one of reduction in the number of fatalities, which is all the more impressive in view of the growth in the number of ships in the world fleet. Figures from LR Fairplay relating to lives lost on cargo ships show a continuing downward trend – and this covers the entire international industry, which employs over one and a quarter million people, plus many more employed in coastal trades.
Loss of ships subject to IMO Conventions
(a) Number of ships subject to IMO conventions lost for any safety-related reason* other than those declared constructive total losses for insurance purposes.
(b) Ratio of ships subject to IMO conventions lost for any safety-related reason, other than those declared constructive total losses for insurance purposes, compared to the total number of ships subject to IMO conventions.
Source : IMO: IMO Strategic plan - performance indicators: examples of data to monitor performance (as of June 2005) IMO Document C 94/3(e)/1 (20.04.2005)
*Safety-related: i.e. not accidents and incidents which are due to security failures, acts of piracy and armed robbery or where their prevention is addressed by other international conventions
Lives lost
STATISTICS ON TOTAL LOSSES OF SHIPS OF 100 GT
AND ABOVE AND LOSSES OF LIVES AS A CONSEQUENCE TO THE TOTAL LOSSES
(As compiled on the basis of data available at the time of issuance of the
circular and, in particular, on the basis of the World Casualty Statistics (LRF)