Safety remains the defining standard of maritime operations, but its implementation varies dramatically across vessel types and regions. This article explores how fragmented enforcement and inconsistent oversight undermine the industry’s ability to manage risk effectively.
Safety standards are a cornerstone of maritime risk management, but their application can vary widely by vessel type and region. Some segments, such as tankers, must adhere to rigorous safety regimes and face enhanced scrutiny through the Oil Companies International Marine Forum’s Ship Inspection Report Programme (OCIMF SIRE) and vetting from oil majors. Tankers typically receive inspections during cargo operations and at least every six months.
A 2024 study by Allianz highlights that between 2014 and 2023, there were a total of 12 tanker vessel losses (over 100 GT), which is substantially lower than the 291 reported for cargo ships. However, the same strict standards do not apply to bulk carriers or general cargo ships, which often face lower levels of scrutiny and are more likely to operate under Flags of Convenience (FoC).
In the dry bulk market, Port State Control (PSC) detention rates are four times higher than those of tankers, and fatality rates are much higher, with a 0.42% fatality ratio compared with 0.14% of LNG and LPG vessels. Assuming an average day rate of $15,000, RightShip data shows that approximately 12,540 days were lost to detention across all vessels in 2024, the estimated value destruction could exceed $188 million. Safety risks also tend to increase on a vessel after it exceeds 10 years.
This disparity can allow vessels with subpar safety or crew conditions to remain competitive simply because they meet the minimum regulatory thresholds. The International Maritime Organization (IMO) has a number of safety conventions such as SOLAS or the ISM Code that apply globally, but PSC regimes enforce them unevenly.
In Europe and North America, regions governed by the Paris Memorandum of Understanding (MoU) or United States Coast Guard (USCG) enforce compliance through regular PSC inspections, ensuring that substandard vessels will be detained. In contrast, enforcement can be inconsistent across some countries in Asia and Africa. While some jurisdictions like Singapore or Japan have high standards, others often face challenges due to resource limitations or weaker regulatory oversight.
Ultimately, shipowners may avoid ports with tougher enforcement if they know their vessels wouldn’t pass inspections easily. As charterers and insurers increasingly value operational reliability and ESG performance, a vessel’s safety track record and flag reputation are critical – a poor PSC history or a black-listed flag can result in delays, higher insurance premiums, or even loss of business.
To explore how the maritime industry can anchor safety, sustainability, and crew welfare at the heart of vessel selection, read the full thought leadership report, From Pledges to Practice: Anchoring Safety, Sustainability, and Crew Welfare in Vessel Selection, commissioned by RightShip.
