Marine

Hundreds, and sometimes thousands, of shipping containers are lost at sea each year, resulting in significant financial losses for global shipping businesses. Lost containers can also present a collision risk for other vessels at sea, and depending on their contents, they could even lead to serious environmental damage.

In this post we will explore why so many shipping containers get lost at sea each year, and discuss how you can best protect your shipping business against financial loss.

How Many Shipping Containers Get Lost At Sea Every Year?

The World Shipping Council routinely surveys its member companies in order to estimate the number of shipping containers that get lost at sea each year.

The most recent survey, from 2025, covers the years up to and including 2024. Here are the total number of containers lost at sea over the past few years, according to World Shipping Council members:

• 2024 – 576
• 2023 – 221
• 2022 – 661
• 2021 – 2,301
• 2020 – 3,924

The World Shipping Council points out that over 250 million containers are shipped each year. 576 lost containers equate to just 0.0002% of this total. They also highlight how approximately 33% of all containers lost each year are ultimately recovered.

The World Shipping Council has been surveying their members in this way since 2011. Each year, they report a rolling three-year average. In the latest report, this stood at 489. In the previous report, the rolling three-year average was more than double this, at 1,061.

So, there is an encouraging downward trend. But the council also report a 10-year average of 1,274 containers lost each year. Every single lost container will lead to significant expenses, and each one poses a hazard to other vessels, and potentially to the environment too.

What Causes Shipping Container Loss?

Container falls
A container might fall from a vessel as a result of bad weather, collisions, or other incidents at sea. Human error can also play a part, should someone fail to correctly secure a container, for example. A ship may also choose to jettison its cargo in response to an onboard incident, such as a fire.

Global events
Global events can influence the total number of containers lost in a year. In recent years, unrest in the Middle East has forced many shipping routes to detour away from the Red Sea, and around the Cape of Good Hope.

Converging weather systems make extreme weather events, along with steep wave patterns, relatively common in this area. According to the South African Maritime Safety Authority, around 200 containers were recently lost around the Cape of Good Hope in the space of one year.

Isolated events
Occasionally, isolated events cause a major spike in the number of shipping containers lost in one year. 5,578 containers were lost in 2013, making this the worst year for losses in recent memory. This was largely due to a single incident in which an entire vessel was lost. Large scale incidents also occurred in 2020, when 3,924 containers were lost in a year, and 2021, which saw total losses of 2,301.

TopTier is an ongoing research project which is currently investigating these large scale losses in order to determine what went wrong, in the hope of identifying potential actions that could help prevent container loss.

Who is Liable For Shipping Container Loss?

Claims involving lost containers can get complicated. As well as the physical loss of the container, insurers must also consider any other containers that get damaged as a result of collapsing stacks, along with any damage the vessel itself sustains during the incident. Plus, as we mentioned above, a container lost at sea could ultimately damage other vessels, and could also have an environmental impact.

A shipping contract should outline who is responsible for costs and losses at each stage of the process. Whichever party is responsible for the goods during the passage at sea, whether that is the buyer or the seller, will have to ensure they are fully covered for potential container losses, along with the subsequent damages and costs that may arise.

Beyond this, the specific circumstances of the incident will determine who takes ownership of the container after it is lost. The cost of recovering lost containers, for instance, often falls on third parties. You can read our full guide to the different types of marine insurance loss claims.

Get Comprehensive Marine Insurance From James Hallam

Everard Insurance Brokers are the specialist marine trading division of James Hallam Limited who are accredited Lloyd’s brokers.

We can help you understand your liability concerning incidents of containers lost at sea, and we can help you ensure you have the dedicated insurance you need to cover you for all risks.

Find out more about our specialist marine insurance services. Or to speak to one of our team Call us on 020 3148 9540 or email info@everardinsurance.co.uk

If you want to ship goods internationally, it is essential that you understand incoterms.

In this post we will outline the full list of incoterms, with meanings and definitions, before exploring why they matter.

What are Incoterms?

Incoterm is short for “international commercial terms”. These are a set of standard trade definitions introduced by the International Chamber of Commerce to transcend global language barriers.

Each incoterm features three letters, and each outlines the specific responsibilities of buyers and sellers in international trade agreements.

Because banks and customs agencies across the world use the same incoterms, anyone involved in international shipping can avoid ambiguities.

Some incoterms apply to all modes of transport, while others are exclusively for sea and inland waterway transport.

Full List of Incoterms

The current edition of incoterms is INCO 2020. There are 11 incoterms in total, and they are grouped into four categories:

The E Term

EXW

EXW is the only E term. It stands for “Ex Works”.

This term is used exclusively to refer to transactions where the seller, exporter, or manufacturer makes the goods available at their own premises. This means that the buyer takes on all subsequent risks, responsibilities, and costs for the goods’ ongoing journey to the final point of delivery.

The F Terms

These terms apply to transactions where the seller or exporter is responsible to deliver the goods to a carrier.

Usually, the buyer arranges for the carrier, meaning that the buyer and the seller share risks and costs. The seller handles the risks and costs up to the handover, and the buyer handles the risks and costs for the rest of the process.

There are three F terms:

FCA (Free carrier)
The delivery point is an agreed location, such as a port or a terminal.

FAS (Free Alongside Ship)
This term refers exclusively to marine shipping. The delivery point is a port of shipment, and the risk and cost transfer takes place when the goods are placed alongside the ship.

FOB (Free On Board)
Another marine shipping incoterm. Like FAS, the delivery point is a port of shipment, but this time the risk and cost of transfer takes place when the goods are loaded onboard the ship.

The C Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for arranging for, and paying for, the carriage of goods. However, they are not responsible for any additional risks or costs that may emerge once the goods have been shipped.

There are four C terms:

CPT (Carriage Paid To)

The delivery point is a named place of destination, and the seller is responsible for all transport costs until the goods are handed to the first carrier.

CIP (Carriage and Insurance Paid To)

The delivery point is a named place of destination, and the seller is responsible for all risks and costs until the goods are handed to the first carrier. In this case, the costs include some insurance cover for any loss or damage to the goods during that first part of their journey.

CFR (Cost and freight)

This term refers exclusively to marine shipping. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship.

CIF (Cost, Insurance, and Freight)

Another marine shipping term. The delivery point is the port of destination, and the seller is responsible for all freight costs up to the point where the goods are onboard the ship. But they will also pay for insurance, to cover any loss or damage to the goods during that first part of their journey.

The D Terms

These terms apply to transactions where the seller, exporter, or manufacturer takes responsibility for all costs and risks associated with delivering goods to a named place of destination.

There are three D terms:

DAP (Delivered At Place)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. However, this does not extend to any costs or risks associated with unloading the goods, or taking them to a further destination.

DPU (Delivered At Place, Unloaded)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. This time, the seller takes additional responsibilities for the costs and risks associated with unloading the goods at the destination.

DDP (Delivered Duty Paid)

The buyer specifies a delivery point, and the seller is responsible for all costs and risks associated with delivering the goods to this destination. In this case, these costs will include any duties incurred during the delivery.

Why Incoterms Matter for Liability

Each incoterm clarifies both the buyer’s and the seller’s responsibilities when it comes to both costs and risks. The terms also clarify the limits of these responsibilities, and the point at which they might transfer from one party to another.

Get incoterms right, and it can lead to streamlined global shipping, even when there is no shared language. But get them wrong, and it can lead to delays, extra costs, custom issues, and even legal disputes.

This is why it is important to not just choose the right incoterm for each transaction, but also to ensure that the contract reflects the implications of the term you use. For example, most incoterms require a named destination. If this is not included in the contract, it could lead to ambiguities and disagreements should anything go wrong.

How Incoterms Affect Insurance

The incoterms you use during your transactions will also determine the level of insurance cover you need, whether you are the buyer or the seller.

In an EXW transaction, the buyer takes on the most risk. In a DDP transaction, the seller takes on the most risk. Other incoterms will require the buyer and the seller to share the risks and the costs, with the specific code determining the precise point at which the responsibilities transfer from one party to another.

Whichever code you use, it is essential that your insurance covers you for all the risks and responsibilities as outlined in your contract.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you understand the cost, risk, and insurance implications of any incoterm you use, and we can help you get the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services, or call us on 020 3148 9540 or email info@everardinsurance.co.uk.

In commercial shipping, vessel availability is directly tied to revenue generation. When a vessel is unable to trade due to physical damage, the financial consequences can be immediate and significant.

While Hull and Machinery (H&M) insurance covers the cost of repairing physical damage, Loss of Hire insurance protects shipowners against the commercial impact of lost income during periods when a vessel is off-hire.

For owners operating in volatile freight markets, this coverage can play a critical role in protecting cash flow and maintaining operational stability.

What Is Loss of Hire Insurance?

Loss of Hire insurance provides financial protection when a vessel is taken off-hire due to physical damage that is recoverable under an underlying Hull and Machinery policy.

Common triggering events include:

• Collision
• Grounding
• Machinery breakdown
• Fire
• Other insured marine casualties

When a valid claim arises, the policy indemnifies the assured for lost daily income during the repair period, subject to agreed policy terms, including deductibles and indemnity limits.

How Does the Loss of Hire Excess Work?

Unlike many insurance policies where deductibles are based on monetary amounts, a Loss of Hire excess is time-based. This means the policy only begins responding after a vessel has been off-hire for a specified number of days.

Key features include:

• The excess represents the initial off-hire period retained by the assured
• A common excess period is 14 days, although this varies based on risk profile and underwriting terms
• The policy responds only once downtime exceeds the agreed excess period
• Claims are typically paid on a daily indemnity basis
• Most policies include an annual aggregate limit on claimable days

Example: 14/60/180

A common structure may be written as 14/60/180, which means:

• 14 days excess – the owner absorbs the first 14 days of downtime
• 60 days indemnity per claim – maximum payable for any one incident
• 180 days annual aggregate limit – total maximum claimable days in a policy year

This structure helps shipowners balance premium costs against risk tolerance.

Why Loss of Hire Insurance Is Commercially Important

For many shipowners, lost earnings during downtime can exceed the actual repair costs of a casualty.

Even when a vessel is not trading, fixed costs continue, including:

• Crew wages
• Insurance premiums
• Technical management fees
• Loan repayments
• Mortgage servicing costs

Loss of Hire insurance helps businesses:

• Maintain cash flow stability
• Reduce earnings volatility
• Protect profitability during market peaks
• Improve financial resilience after unexpected incidents

This is particularly important during strong freight markets, where the opportunity cost of downtime can be substantial.

Why Lenders Often Require It

Marine lenders and mortgage providers often require shipowners to maintain Loss of Hire insurance as part of financing agreements.

This helps ensure:

• Debt repayments continue during downtime
• Vessel financing risk is reduced
• Lenders have greater confidence in operational continuity

For highly leveraged fleets, this cover can be an important component of broader risk management.

Why It Matters for Charterers

Loss of Hire insurance can also be relevant for charterers, especially when contractual obligations rely on the continuous availability of a specific vessel.

An insured casualty may result in:

• Replacement vessel costs
• Delayed cargo delivery
• Contractual disruption
• Increased operational expenses

This makes downtime risk a commercial concern for both owners and charterers.

Key Benefits of Loss of Hire Insurance

• Protects revenue during insured repair periods
• Improves cash flow resilience
• Supports financing and lender requirements
• Reduces the impact of unexpected downtime
• Helps stabilise earnings in volatile markets

Specialist Marine Insurance

In commercial shipping, downtime can quickly translate into lost revenue. While Hull and Machinery insurance protects physical assets, Loss of Hire insurance helps protect earnings.

For shipowners, lenders, and charterers alike, it remains an important tool for managing operational and financial risk in an unpredictable maritime environment.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you access the specialist cover you need at a competitive price, including Loss of Hire insurance.

Find out more about our dedicated marine insurance services.

Whether you own and operate a boat, or you run a marina, the right safety equipment and procedures are vital for preventing and effectively responding to incidents on the water.

In this post we will list all of the essential safety equipment that every UK boater should have onboard.

For further information about keeping yourself, your passengers, and your vessel safe on the water, take a look at our guide to boat safety certificates.

What are the Most Common Boating Safety Risks?

There are a number of common risks to be aware of in and around boats, in particular:

• You, a crew member, or a passenger falls overboard
• Someone sustains an injury while onboard your vessel
• A fire breaks out
• Collisions with other vessels
• Your engine breaks down, leaving you stranded

Essential Safety Equipment For All UK Boaters and Marinas

In the UK, the specific safety regulations that apply will depend on the size of the vessel, and its crew. In short, the bigger your boat, the more safety regulations you will have to meet.

Below we will list the essential safety equipment that all vessels of all sizes should consider having onboard, including:

• Lifejackets
• First aid kit
• Navigational tools
• Communication tools
• Maintenance equipment

We’ll explore each of these in more detail below.

Lifejackets

Everyone onboard should have a properly fitting lifejacket, which should meet ISO 12402 safety standards. A good lifejacket will have additional safety features including lights and whistles for attracting attention.

You should also ensure your vessel has a lifebuoy or throwing line, in case someone falls overboard.

First Aid Kit

You should also routinely check your first aid kit to ensure that all materials are still in date, and you should replace or replenish items whenever necessary.

Navigational Tools

You will need charts, navigation books, a compass, binoculars, and a GPS device for navigating unfamiliar waters.

All vessels should be equipped with navigation lights too, even if you do not intend to sail after dark. At the very least, you will need a green starboard light, a red port light, and a white centre light, all of which should be visible from at least a mile away.

Communication Tools

A VHF radio is necessary for staying in touch with the shore, and with other vessels. For this, you will also need an MMSI number and an Ofcom licence.

If you do not have the means for a radio, you should still stock flares and other distress signals, so you can attract attention in the event of an emergency.

Maintenance Equipment

Depending on the type of boat you operate, you may need a toolkit for basic repairs, cleaning supplies, spare engine parts, and a bilge pump for removing excess water.

Ongoing maintenance can help you recover from engine failure and other incidents, while keeping everything clean can help prevent faults and fires.

How to Check Your Boat is Compliant With Safety Regulations

The specific safety regulations will also depend on the type of waterway in which you will be operating. Different organisations govern different waterways, and local regulations and restrictions also apply to some areas.

The following organisations govern UK boat safety equipment regulations:

• Maritime and Coastguard Agency (MCA) – The MCA regulate the safety equipment for all UK recreational vessels under 13.7 metres (45 feet).
• Royal Yachting Association (RYA)
• Boat Safety Scheme (BSS)
• International Convention for the Safety of Life at Sea (SOLAS) – You will have to meet SOLAS regulations for any excursion that takes you into international waters.

When planning an excursion, check first what regulations apply to the waters you will be navigating. And remember that regulations will only list the minimum safety standards. For total peace of mind, and to prepare you for any situation, it pays to go beyond the minimum safety standards.

Boat Safety Equipment and Insurance

Finally, your insurer may also specify some essential safety equipment you need to keep onboard as a condition of your cover. If you are involved in an incident, they may reject your claim if they find you did not have certain items onboard, or if it transpires that you did not keep on top of essential cleaning or maintenance tasks.

Everard Insurance Brokers are the specialist marine trading division of accredited Lloyd’s brokers James Hallam Limited. We can help you ensure your boat meets all relevant safety standards, and we can help you access the specialist cover you need at a competitive price.

Find out more about our dedicated marine insurance services.

Pirate attacks on cruise ships are relatively rare, but they remain a threat no cruise ship operator should ignore.

In this post we will list some examples of cruise ship piracy, before exploring how you can prevent pirate attacks and keep your vessel and your passengers safe.

How Common Are Pirate Attacks Against Cruise Ships?

Though pirate attacks against cruise ships do happen, they are relatively rare. Pirates are unlikely to target cruise ships for a number of reasons. They are large, they travel at high speeds, and they tend to travel through waters that are patrolled by naval forces. Plus, cruise ships tend to have advanced radar systems, meaning they would be able to detect any approaching pirates with ease.

In addition, pirates know that cruise ships tend to have multiple anti-piracy systems onboard, which would make an attack too risky. In 2011, the Spirit of Adventure was approached by pirates off the coast of Tanzania. The pirates seemed to observe the ship, but they left before taking any action. A spokesperson later said that, most likely, the pirates thought better of attacking once they got a good look at the ship’s security systems.

But pirates can be opportunistic. And if they suspect that a cruise ship will be unable to defend itself, they may attempt an attack. This is why all cruise ship operators should put measures in place to prevent and respond to pirate attacks, no matter how low the risk may be.

Examples of Cruise Ship Pirate Attacks

• The hijack of an Italian cruise ship, the MS Achille Lauro, with with 97 passengers and hundreds of crew on board.
  Find out more about the Achille Lauro hijacking, Mediterranean Sea, 1985
• The pirate attack of the Seaborn Spirit cruise liner, with 300 crew and passengers targeted off the Somali coast.
  Find out more about the Seabourn Spirit, Somalia, 2005
• The attack on a German cruise ship sailing from Eygpt to Dubai with 492 passengers and a number of crew.
  Find out more about the MS Astor, Gulf of Oman, 2008
• The pirate attack of an Italian cruise ship with almost 1,000 passengers on board, resulting in gunfire.
  Find oure more about the MSC Melody, Somalia, 2009

The pirates’ motives and methods varied in each of these cases. But usually when it comes to cruise ships, pirates will attempt to hijack the ship, using the passengers and crew as hostages.

However, most pirate attacks against cruise ships tend to be thwarted before the pirates can even get onboard. This means it is hard to gauge the pirates’ motivations: Whether they wanted to take control of the ship, or simply to steal valuables from guests.

How Do Cruise Ships Protect Themselves and Passengers Against Pirates?

Crew and Passenger Drills

Everyone onboard should know exactly what steps to take in the event of piracy. You can arrange for specialist training for your crew, and you can outline your piracy response procedures as part of your mandatory passenger safety drills.

Safety Procedures

When sailing through waters where there is a risk of a pirate attack, cruise ships should temporarily move all outdoor activities indoors. They should also aim to darken the ship’s lights at night, to make them less of a visible target for pirates.

In the event of an attack, all passengers should stay below decks, ideally in their cabins with their doors locked, until further notice.

Detection and Communication

Cruise ships should make use of their advance radar systems to detect potential piracy attacks as early as possible. You should also stay in constant communication with all other ships in the area, including the naval forces, and notify them of any emerging risks.

If all the ships in a body of water coordinate in this way, pirates will find it harder to approach vessels without warning, and to isolate vulnerable vessels for attack.

Onboard Deterrents

Cruise ships often make use of water cannons and acoustic weaponry to ward off attacks. During the attack on the MSC Melody in 2009, crew members also used pistols that were stored onboard to deter a pirate attack.

Certain maritime officials criticised this approach, saying that non-lethal weaponry would have been just as effective. Any cruise ship using live ammunition will need to ensure that all onboard firearms are registered, and that only trained and authorised crew members have access to them.

Is Your Cruise Ship Covered For The Risks of Piracy?

If your cruise ship will be travelling through a location with a risk of piracy, then you must ensure that your maritime insurance covers you for the increased risk. Your policy should include war risk insurance, which can protect against losses from acts of piracy, along with kidnap and ransom insurance (K&R) for you, your crew, and your passengers.

Everard Insurance Brokers is the specialist marine division of accredited Lloyd’s broker James Hallam Limited. We can help you secure comprehensive protection against piracy and related risks, to help you respond effectively to any incident at sea.

Learn more about our dedicated marine insurance services.