The dry bulk sector is grappling with persistent safety challenges, consistently reporting higher rates of incidents, fatalities, and Port State Control (PSC) detentions compared to other segments of the shipping industry. Bulk carriers have the highest incident ratio at 1.49%, significantly outpacing oil tankers at 0.96% and LNG vessels at 0.89%. The sector also faces a concerning fatality ratio of 0.42%, more than triple that of LNG and LPG vessels, which stand at 0.14%. PSC detentions further highlight the issue, with bulk carriers showing a detention ratio of 4.69%, four times higher than that of oil tankers.
These statistics paint a clear picture: without proactive measures, the safety risks are considerable. However, the implications extend beyond safety; they impact the entire business ecosystem. The dry bulk sector’s elevated detention rates translate to operational disruptions that can have severe financial consequences. In 2023 alone, bulk carriers lost approximately 3,200 days to detentions, which equates to an estimated $48 million (assuming day rate of $15K a day) in lost revenue. This underlines the urgent need for robust safety interventions, which not only protect the crew and vessel but also enhance business resilience and reduce costs for operators and charterers alike.
The average age of the global dry bulk fleet has risen to 14.7 years, as operators delay fleet renewal amid uncertainties around emerging technologies and green fuels. Vessels constructed during the 2010s—now entering their second decade of service—will increasingly play a critical role in meeting demand. With older vessels forming a larger share of active fleets, effective oversight is crucial to maintaining safety and reliability.
The recent reduction in the age threshold for inspections from 14 to 10 years reflects not only the evolving market conditions mentioned above but aims to address pressing safety concerns based on what data is showing us. By incorporating vessels into an annual inspection regime earlier, we can:
Data shows that detention and incident ratios rise notably for vessels over 10 years old, emphasising the need for earlier intervention through inspections. This pattern is consistent across global data and individual MOUs, with minimal difference between vessels aged 10–13 years and those aged 14–19 years. These trends are also uniform across vessel size groups, reinforcing that proactive safety measures are essential for the entire dry bulk sector. Early inspections can be a vital intervention for Owners & Managers to effectively mitigate risks. However, it’s crucial to recognise that sustained improvements in performance require operators to take dedicated follow-up actions after a RightShip Inspection, as the inspection alone does not ensure progress.
The Strategic Advantage of RightShip Inspections
RightShip vessel inspections serve as a critical tool for operators to distinguish themselves in an industry facing significant safety challenges. A strong performance in these inspections signals operational reliability, strengthens business resilience, and boosts market appeal. For charterers, these inspections are invaluable for vetting and risk management, aligning with growing demands for deeper scrutiny and assurance of safety.
Embracing safety excellence is not just a regulatory requirement; it is a commercial necessity. Operators that excel in RightShip Inspections demonstrate a commitment to best practices, well-trained crews, and comprehensive safety procedures. This dedication builds trust with charterers and contributes to a culture of safety across the industry.
A Call for Collective Commitment
The road to safer and more resilient dry bulk shipping is paved with proactive measures, collective effort, and sustained commitment. By embracing early interventions and robust safety standards, the industry can not only reduce incidents and detentions but also foster a more sustainable and dependable future. Together, we can rise to the challenge and set a new benchmark for safety, reliability, and success in the dry bulk sector.