The shipping industry is facing a mounting insurance crisis as an ageing global fleet fuels a dramatic rise in claim costs, according to new data from the Nordic Association of Marine Insurers (Cefor).

Published this week, Cefor’s 2025 Nordic Marine Insurance Statistics (NoMIS) report reveals that ocean hull claims costs remain 33% above pre-pandemic levels, with 2025 marking the third consecutive year of elevated losses. The findings point squarely at machinery failure and fire as the twin engines driving costs higher – trends inextricably linked to the advancing age of the world’s merchant fleet, something Cefor describes as a ‘silver tsunami’.

Machinery claims have emerged as a particular flashpoint. The frequency of machinery claims exceeding $500,000 is 30% higher in the 2022-2025 period compared to prior years, contributing to a 50% jump in machinery claim costs per vessel. Perhaps most alarming, seven of the 18 claims exceeding $10m in 2024 were machinery-related – matching the entire total from the previous six years combined. The frequency of large machinery claims in 2024 was six times higher than in the preceding six-year period.

Cefor analysts note that machinery claims are increasingly being coded as human error, a trend potentially linked to crew shortages afflicting the industry. The ripple effects are significant: machinery failures are now being linked to collisions, groundings, and fires, blurring the lines between claim categories.

Fires continue to dominate the most severe losses. Seven of the 13 claims above $10m reported in 2025 were fire-related, and fires have accounted for 40-70% of the costliest losses in six of the past 10 years.

The number of claims exceeding $10m doubled from nine in 2023 to 18 in 2024, while 2025 has already logged 13 such claims. Total losses on vessels valued above $10m also rose – an unusual development that signals deteriorating conditions across higher-value tonnage.

Inflation is compounding the picture, with claim cost trends closely mirroring newbuilding price indices and reserve adjustments climbing sharply.