Salvors under pressure as casualties dip

THE last quarter of the year is when salvage companies, or salvors, take stock. This year, those that belong to the International Salvage Union (ISU) held their annual general meeting (AGM) in Cape Town, South Africa in October and then, a couple of weeks ago, hosted a press lunch in London where they explained how they saw the market and the sector's prospects.

There is a fundamental fact of life which the salvage industry is having to grapple with. Salvors are not needed anywhere near as often as they were decades ago, at least not for their traditional role of saving casualties from becoming losses.

The reason is obvious. Earlier in the year, major insurer Allianz published its casualty statistics for 2017. Numbering around 100, losses were down 4 per cent compared with a year earlier. The insurer noted: "Over the past decade, total losses have declined by more than a third (38 per cent), driven by improved ship design, technology and advances in risk management and safety."