Industry Snapshot Fall 2026

Marine claims severity is increasingly being driven by the complexity, duration and cost of recovery following a loss. Labor shortages, supply chain disruptions, and repair-yard constraints can extend the time required to obtain parts, complete repairs, and return vessels to service, increasing both repair costs and vessel downtime.

One of the most significant challenges remains a shortage of skilled labor in shipyards and marine repair facilities. The U.S. maritime industrial base continues to face workforce shortages concentrated in the trades most critical to vessel repair, including welders, mechanics, electricians, pipefitters, and fabricators. These labor constraints can lengthen repair timelines, reduce available repair capacity, and increase the cost of returning vessels to service.

In addition to labor shortages, rising material and equipment costs continue to place upward pressure on marine claims. Many vessel repairs require specialized components, engines, propellers, electronics, steel, and OEM parts sourced through global supply chains. When these parts become scarce or difficult to obtain, repair costs rise and repairs take longer to complete. The Bureau of Labor Statistics publishes a Producer Price Index for Ship Repair, Nonmilitary. The latest data shows ship repair prices remain significantly above pre-pandemic levels, reflecting continued pressure on repair costs through the maritime sector.

Broader inflationary pressures also continue to affect marine claims costs. After moderating mid-year, inflation has started to accelerate again. According to the Organization for Economic Co-Operation & Development (OECD), more than half of G20 economies currently have inflation rates above central bank targets, driven primarily by rising energy costs. Inflationary pressures have been further compounded by tariffs and other trade-related measures that increase the cost of imported steel, replacement parts and other inputs used in vessel repair and maintenance.

Finally, geopolitical events, including recent conflict in the Middle East, have demonstrated how quickly regional instability can affect shipping routes, energy prices, supply chains, and repair costs. As a result, marine losses are increasingly influenced not only by the physical damage itself, but also by broader economic and geopolitical factors that shape the cost and timing of recovery.

U.S. Bureau of Labor Statistics, Producer Price Index, PPI – Ship Repair, Nonmilitary

OECD Economic Outlook, Interim Report, Weathering Successive Shocks, September 2026