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5 Cargo

5 Cargo

5.1 Introduction

We can see from Graph 5.1 that the average cargo claims cost across all three vessel types is more than USD 100,000 over the

past ten years. Costs fell in 2014 but the frequency continued to rise. There has been an overall rise in frequency over the past
10 years but that rise is seen for claims above USD 5,000 which indicates that the claims costs are rising.

Graph 5.1: Average claims costs & frequency Graph 5.2: Average claims costs & frequency

Claims 5,000–3,000,000 (USD)Claims 1–3,000,000 (USD)

Period: 2005 - 2014Period: 2005 - 2014
Types of vessel: Bulk carriers, containers and tankers Types of vessel: Bulk carriers, containers, tankers
Type of claim: CargoType of Claim: Cargo

As per 25/9/2015As per 25/9/2015

160,000 0.28 100,000 0.50
0.26 0.24 90,000 0.45
140,000 0.22 80,000 0.40
120,000 0.20 70,000
0.18 0.35
100,0000.16 60,000 0.30
80,000 0.14 50,000 0.25
0.12 40,000 0.20
60,000 0.10 30,000 0.15
40,000 0.08 0.06 20,000
0.04 0.10
20,0000.02 10,000 0.05
0 0.00 02005 2007 2008 2010 2013 0.00
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014PERIOD2006 2009 2011 2012 2014 PERIOD
Cost Cost Freq
Freq

The frequency for claims above USD 5,000 is rising. Graph 5.1 shows that over the past ten years the frequency and cost
increased constantly. Graph 5.2 shows however that the frequency for claims below USD 5,000 is falling.

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