Cefor: “Silver Tsunami” of Machinery Damage on the Way

The Nordic Association of Marine Insurers (Cefor) annual report on hull trends has revealed that a ‘silver tsunami’ of machinery damage could be on the way as the industry deals with ageing tonnage. 

According to the report, this ‘silver tsunami’ can be attributed to the fact that many vessels in the current fleet were delivered in the years following the financial crisis (2008-2012) and are now reaching an age where they are more prone to machinery claims, fires, and consequential damage. 

In fact, machinery claims accounted for 56% of the claims cost for these vessels in 2024 compared to 35% machinery share on vessels built in later years. 

Commenting on the report and its findings, Cefor analyst Astrid Seltmann, said: 

“This year, Cefor turned the spotlight on several topics, alongside the standard fleet and casualty updates. Machinery damage showed a substantial increase in recent years, which should be seen in the context of an ageing fleet. 

Among the largest losses, fires and collisions dominate, with 2023 and 2024 being the first years after a benign ten-year period with losses above USD 50 million”.

Aside from machinery damage, another area driving claims is heavy weather losses potentially as a result of vessel rerouting through more weather-exposed areas; weather-related casualties showed an increase from the fourth quarter of 2023.

Finally, the report also suggests that another source of claims is related to vessels going into layup. As Christian Irgens, chair of Cefor’s Statistics Forum, has stated: 

“The main reason of poor performance of vessels after lay-up might be that the worst vessels go into lay-up. Reactivating these vessels brings back the claims performance they had prior to the lay-up. An analysis of bulk and container vessels idle in the pandemic year 2020 revealed that vessels which become idle first have a worse claims record prior to and after the lay-up period”.

Dealing with vessel engine damage? 

Then speak to the Brookes Bell team today. As many as 28% of all machinery claims are related to main engine damage, with average claims costing close to $650,000. 

That’s why, if you’re dealing with a case involving engine damage, you need marine engineering expertise on your side. 

Our marine engineers have experience investigating a broad range of incidents, including; crankcase explosions, crankshaft failures, bearing failures, piston failures, liner failures and more. 

Explore Brookes Bell’s main and auxiliary engine damage services now

For more maritime industry insights, news and information, read the Brookes Bell News and Knowledge Hub…

Containership Orders Reach Record High | Hapag-Lloyd Fleet Reaches 300-Vessel Milestone | Lloyd’s Register to Use Gen AI to Advance Nuclear Tech in Maritime