2024 has been another turbulent year for global trade, where global events seem to be occurring at an increasingly fast pace. Yet, these are not minor small-fry events, but major threats that have the capacity to generate serious economic damage.

The figures themselves are quite extraordinary. A $1.25 trillion economic loss from the crisis in the Red Sea and drought in the Panama Canal. $6 billion in a labour strike in Germany, and another $63 billion averted in a US east coast port strike that was called off at the last minute.

Viewed through the churn of today’s news cycle, it is comforting to view these incidents as just isolated events. However, if one takes a step back and joins these phenomena together, they paint a completely different picture. 

They show a trading landscape where threats, events and scenarios are being driven by new and familiar geopolitical, economic and natural catastrophe risks, all of which are conspiring to generate reputational and economic losses for governments, insurers and businesses.

In other words, these events demonstrate that we are well and truly living in the era of “Connected Risk”. 

Operating in this environment, for those connected to the Maritime Industry, involves not just an awareness of these threats, but employing good quality data analytics to understand the flow of global trade, and a company’s position and exposure in relation to this trade. 

Failure to adopt such a data-led approach will leave underwriters and corporates vulnerable to more losses in the future. This is not an option because if 2024 is anything to go by, 2025 will be another volatile and turbulent year.