Safety costs in Arctic shipping: a proposal classification and estimation

Abstract

PurposeThis study classifies and estimates safety costs in Arctic shipping.Design/methodology/approachBased on the literature review, the paper details shipping prevention costs into five categories (infrastructure and facilities, measures, technologies, personnel and management) and groups marine accidents into injury and death, property damage, environmental damage and others.FindingsThe proposed classification and estimation allow for a comparison of prevention costs and accident expenses. Estimating safety expenses in the Arctic presents challenges, such as data inadequacies. However, the method has been tested with data provided by an Arctic ship operator.Practical implicationsThus, shipping companies can verify the effectiveness of their investments and reorientate whenever necessary, becoming a decision-support system to best allocate safety investments. Combined with company safety performance, the tool can help identify the safety areas requiring enhanced attention.Originality/valueThis paper presents the first classification and a tool to assess safety costs in relation to Arctic shipping, potentially supporting safety investment decisions.