Troubles mount for global shipping lines as seafarers are in short supply amid coronavirus travel and quarantine restrictions

Troubles mount for global shipping lines as seafarers are in short supply amid coronavirus travel and quarantine restrictions
Ryan Swift 30 Mar, 2020 https://www.scmp.com/business/companies/article/3077465/troubles-mount-g...

*The International Chamber of Shipping has been lobbying the United Nations to classify 2 million seafarers globally as ‘key’ or ‘essential’ workers
*Limitations on crew change have the potential to cause serious disruption to the flow of trade, says Guy Platten, secretary general of ICS

Shipping companies, already dealing with slumping demand because of the coronavirus outbreak that has pushed the global economy to the brink of a recession, have been hit by another problem. Travel and quarantine restrictions placed dozens of countries are affecting their crews and adding to their troubles.

“In many ports crew changes are simply prohibited,” said Rajesh Unni, founder and chief executive of Singapore-based Synergy Group. Synergy manages more than 300 ships and over 12,000 seafarers. “Elsewhere, vessels from some origins are now forced to remain at anchorage in quarantine for up to 14 days before they can dock.”

The International Chamber of Shipping (ICS), which represents most of the world’s shipowners, has been lobbying the United Nations to have seafarers classified as “key” or “essential” workers. They estimate that there are 2 million seafarers globally, of which 1.2 million are on board ships at any time.

In a March 19 letter to the UN, the ICS estimated that at least 100,000 seafarers a month need to change over from the ships they operate. Crews are often flown home or flown to the ports in which ships are based, and the time they spend on board a vessel depends on their rank, experience and ship type.

Most recently, India has gone on a 21-day lockdown and is enforcing a two-week quarantine on all passengers, including Indian nationals, arriving from European countries hit hard by the virus and from China. China has just banned entry to all foreign nationals.

Singapore, home to Asia’s largest container port outside China and one of the world’s top places for oceangoing cargo ships to refuel, has prohibited all visitors to enter or transit with recent travel history to France, Germany, Italy and Spain. Italy and Spain are the latest hotspots of the Covid-19 outbreak that has affected at least 700,000 people globally and claimed more than 33,000 lives.

According to Wilhelmsen, a global ship manager, Singapore no longer allows crew changes or shore leave. Greece, home to the Port of Piraeus, one of the busiest in Europe, has prohibited crew changes and shore leave.

Some of the other issues facing shipping companies cited by ICS include delayed port clearance, prevention of crew from embarking or disembarking, prevention of loading or unloading of cargo or provisions, and in extreme cases, refusing port entry to ships.

“Limitations on crew change [the replacement of one of the ship’s crew members with another one] have the potential to cause serious disruption to the flow of trade,” said Guy Platten, secretary general of the ICS. Platten noted that Maersk, the world’s largest container cargo shipping line, has suspended all crew changes until April 14, meaning seafarers face unknown lengths of time at sea with no prospect of relief.

According to the Hong Kong Ship Owners Association, the top five national sources of crew and officers are the Philippines, China, India, Greece and Eastern Europe, including Ukraine, Poland, Russia and the Baltics.

Captain Kaushik Roy, quality and environment manager at China Energy Ship Management, which specialises in shipping LNG to China, said that delays caused by quarantines were merely headaches now, but would start hitting the bottom line eventually. He estimated that crew costs constituted at least half of the running costs of a cargo ship.

Dry bulk shipping rates remain far below levels that are profitable and container shipping rates have been supported only by the idling of nearly 10 per cent of the fleet capacity, according to BIMCO, the world’s largest shipping association.

“This is a time bomb,” said Unni, who noted that seafaring already involves crew being away from their families for long periods.

“Right now, in the midst of a pandemic when of course people are anxious, thousands are stuck at sea or stranded around the world waiting to join vessels but unable to do so.”