Shipping: in transition. File Image / Pixabay.
Shipping's energy transition will increase risk in the sector, a global insurance provider has said.
In its annual review of risk trends in shipping, insurance firm Allianz has said that shipping's path to decarbonisation will change the nature of risk in the sector.
The review notes that there is a surfeit of innovation around alternative bunker fuels but that "there is not yet an obvious technical solution" as to how to get to net-zero.
That means "heightened risk" as new fuels increase the chances of machinery breakdown.
"The transition to alternative fuels will likely bring heightened risk of machinery breakdown claims, as new technology beds down and as crews adapt to new procedures," the review said.
"As the industry plots its course through the transition, it will need to ensure risks are contained within acceptable limits," it added.