3 NEGATIVE EFFECTS OF COVID-19 AND 1 POSITIVE IN MARITIME INDUSTRY

3 NEGATIVE EFFECTS OF COVID-19 AND 1 POSITIVE IN MARITIME INDUSTRY

Three negative effects of Covid-19 and one positive in maritime industry.

Passenger Traffic is sinking.

Cruise passenger traffic in Singapore down 52% since COVID-19 outbreak.(CNA International Edition).

Shares of the world’s largest cruise companies — Carnival Corp., Royal Caribbean International and Norwegian Cruise Lines — dropped as much as 26% Monday after several weeks of declines as the virus’ toll continued to grow. (LosAngelesJournal)

Cargo transportation is shrinking.

Covid-19 may imply a potential volume loss of 10% equal to 17 million TEU globally. (SeaIntelligence).

IRU counts on-cost to road hauliers of container transportation drop at US$2 trillion (WCN).

China is not only the largest exporter in the world, it is also home to seven of the ten busiest ports and a major container shipping line. As the coronavirus continues to spread, the shipping industry is bracing for the inevitable impact it will have on the business (Lockton)

Accumulation of cargo, important delays and interrupt in transit will have an impact.

Bad times form economy in the short term.

The COVID-19 outbreak has had a direct economic impact on virtually all shipping segments, including (but not limited to) containerships and cruise ships.

Companies will have to downsize such as Stena Line who will to axe 950 jobs in response to Coronavirus impact (WorldMaritiemeNews).

Some expert assessments indicate that while the short-term outlook is unfavorable, the prospect for improvement over the coming months seems positive (ICS).

Opportunity to differentiate from others.

Companies will have the opportunity to send a message to shareholders, employees and society. It is not only about survival; it is about the way companies will survive and what they do in the process. Ethics are now more than ever relevant.

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