Unseen and largely unknown by many, shipping has actually been the lifeline for delivering essential supplies to the world during coronavirus shutdowns, but like everything else, shipping has been hit in ways both large and small.
According to an Allianz Global Corporate & Specialty (AGCS) report, the top concern for shippers has been the inability to easily change crews. Pandemic restrictions have extended the time crews have to work aboard ship. Crew relief is essential for seafarers who can suffer mentally and physically after extended periods onboard. In addition, mental exhaustion is the underlying cause of human error, a contributing factor in 75 to 96 percent of marine accidents.
Not surprisingly, while shipping has been essential in delivering goods around the world, global lockdowns have slowed all business, including shipping. More vessels are laid-up, the AGCS report says, and companies have to cut costs. Many fear companies will cut crew and maintenance budgets, greatly increasing risks.
Supply lines are under some pressure from the pandemic, especially regarding temperature-sensitive goods. When the ships get to port, cargo handling companies have often shut down suddenly, or the ports are operating under severe restrictions.
Even obtaining essential spare parts and consumables, such as oils and lubricants, has been difficult, calling into question possible engine and machine efficiency, and with those, safety.
Around the world, tankers have idled at major oil ports and terminals in the U.S., Europe and Africa, exposing companies to piracy, extreme weather, and political risks.