Allianz says $125b in cargo remains stranded in Gulf

Hull and cargo premiums increased during the conflict.

Marine insurance remained available throughout the conflict in the Middle East, although premiums for hull and cargo cover increased, even as around $125b worth of vessels and cargo remain stranded in the Persian Gulf awaiting the resumption of normal operations through the Strait of Hormuz.

In Allianz Research’s Safety and Shipping Review 2026, it estimated that about 1,150 cargo vessels of more than 100 gross tonnes, carrying ships and cargo totalling 29 million gross tonnes, are currently waiting in the Gulf. 

Up to 20,000 seafarers are also affected.

Allianz said the main concern for shipowners has been the safety of crews and vessels operating in conflict zones rather than insurance availability. 

The insurer said the disruption underlines the importance of maritime chokepoints to global trade, noting that as many as 140 vessels transited the Strait of Hormuz each day before the conflict.

The report said geopolitical risks have become a major concern for the shipping industry, with conflicts, pandemics and disruptions at major ports or canals increasingly affecting shipping routes and supply chains. 

It added that companies are placing greater emphasis on resilience and contingency planning, even at higher operating costs.

Despite geopolitical tensions, maritime safety indicators have continued to improve. Allianz reported more than 900 total vessel losses worldwide over the past decade involving ships larger than 100 gross tonnes. 

Between 2021 and 2025, there were 350 losses, an average of 70 a year, down 37% from an annual average of 111 losses recorded between 2016 and 2020.

In 2025, 43 total vessel losses were reported, including more than 30 ships larger than 500 gross tonnes. 

The South China Sea, Indochina, Indonesia and the Philippines remained the region with the highest number of losses both over the past year and the past decade, with 255 incidents recorded.

Global shipping incidents fell by about 16% in 2025 to 2,818 cases from 3,353 in 2024. 

The East Mediterranean and Black Sea region recorded the highest number of incidents at 622, followed by the British Isles with 619.

Machinery damage and failure accounted for more than half of all shipping incidents in 2025, at 1,505 cases, whilst vessel collisions caused 260 incidents. 

Fires also remained a significant risk, with more than 200 incidents involving large vessels reported last year, the second-highest annual total in the past decade. At least nine total losses were linked to fires.

The report also found that the average age of the global fleet rose to 23 years in 2025, from around 20 years before the COVID-19 pandemic, as shipowners kept vessels in service longer amidst geopolitical uncertainty and limited shipbuilding capacity. 

Allianz said vessels older than 20 years account for more than half of all maritime safety incidents because ageing ships are more vulnerable to structural, mechanical and technological failures.