Page 6 - Annual Review 2020

Indian National Shipowners’ Association
President Speak
Impact Of Covid-19 on The Shipping Industry
In early March 2020 a virus, approximately 120 nanometer in diameter, brought billions across the globe onto a common platform. WHO character- ized the outbreak caused by COVID-19 a “pandem- ic”. The coronavirus became a threat to one and all, having a profound impact on most aspects of life, businesses and society.
Diamond Princess Cruise ship suffered the on- slaught of COVID-19 and the cruise industry came to a standstill. Mercifully commercial ships have been mostly untouched by the virus and have re- mained operational throughout this pandemic to provide continuous essential services. The crew on our ships were probably in the safest zones. However, our ships did need to make port calls, did need to have crew changes and needless to say did need to have full support from the shore staff. All of our members were affected in some way or the other, some more, some less. The INSA Secre- tariat steadfastly played a vital role in liaising with the Ministry of Shipping and the Directorate Gener- al of Shipping for the various roadblocks we faced. The Secretariat also coordinated with the Interna- tional Chamber of Shipping and the International Maritime Organization to keep abreast of the global situation and keep our administration informed. In turn, the MoS and DGS played a paramount role in ensuring smooth functioning of Sea Transpor- tations and Port Operations. What was refreshing and very welcome was the intensive stakeholder consultation and coordination with other govern- ment bodies that both MoS and DGS indulged in. These were key to the success in the fight against COVID-19.
Most of our offices (and companies across the world) had to almost overnight adopt a ‘Work from Home” environment. We were pushed to embrace technology in its entirety, an action which may nev- er have happened sitting in the office. We all must have had some hardware, connectivity or other teething problems, but most would have quickly been able to fix/adapt to them. As we speak, while some have continued to at least partially work from the office, many still continue to effectively work from home.
The pandemic worsened the already stressed supply-demand ratio in the industry. It has had a negative impact on vessel employments and on the freight rates. Impacts were in the form of port closures, less demand for cargo, disputes, bank-
ruptcy, etc. The COVID-19 has caused disruptions to both supply and demand in the world economy. COVID-19 infections reduced labor supply and pro- ductivity and caused supply disruptions withlock- downs, business closures, and social distancing. On the demand side, layoffs and the loss of income (from quarantines, and unemployment) affected economic prospects with household consumption reducing. The impact is expected to last for a year or more before normalcy returns.
At an operational level the first most important step in times like this is to keep everyone well informed and on the same page. This entails a lot of com- munication, effective exchange of information and timely circulation of orders and notices.
Our greatest challenge through the pandemic has been to ensure that our ships remain COVID-19 free and have uninterrupted operating days.
Every port call and every human interaction posed a high risk. This was especially because, as we came to understand, an individual could be infect- ed and yet have no symptoms. Onboard SOPs for COVID-19 risk mitigation, shipboard management plans, and temperature logs were just some of the many interventions that were carried out. Detailed protocols had to be set up for port calls which in- cluded aiming for ‘Contactless Port Calls”. Large quantities of Personal Protective Equipment (PPE) and adequate monitoring equipment had to be pro- vided. A continuous education/reminder was given to the ship staff on how to keep themselves safe and on how to handle on-board supplies.
An integral part of our ships being able to provide uninterrupted service is the timely connectivity of provisions, stores, spares and shore services. Con- nection of documents, publications, charts and es- sential supplies was disrupted as postal and courier services came to a halt. Globally manufacturing and the logistic supply chain were at a standstill leading to delays and long lead time to procure spare parts and equipment. Travel and port restrictions caused disruption of shore services for repair and mainte- nance. Extensions were sought for expiring ship trading certificates and surveys and inspections had to be delayed. Superintendent visits were put on hold. Dry dockings had to be postponed which may have resulted in a significant cost to reposition the vessel.
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