At the beginning of the year ; Global Maritime Medical Service Future Care has issued a list of general guidelines for crew member health and vessel preparedness which familiar but more comprehensive since we need to do at land.
Now, the problem and the risk are bigger and there are several aspects for the vessel due to shipping, crew and the insurance market impact.
FOR THE INSURANCE MARKET:
As usual this pandemic caused to an increase in business interruption, cargo claims due to non delivery and obligations guaranteed in sale , credit risk etc. will give rise to insurance disputes.
By now, many of the voyages cancelled meaning profits are begin destroy the shipowners as they are unable to cover fuel cost.
Moreover they had to leave the port especially China under loaded . It stands to reason that this also effect to pay premiums for their covers.
When we look at their obligations due to contractual obligations, there will be many disputes for FD&D and Charterers legal liability cover.
To make matter worse, the epidemics and pandemics are usually excluded from standart insurance policies.
FOR CREW:
They are not allowed to leave the vessel at the Ports, they do not contact with shore personnel , they do not see their families and follow standard precautions including maintaining meticulous personal hygiene regimes as recommended by coronavirus authorities.
They are really difficult positions if there is a infected person on the vessel.
FOR SHIPPING:
Because of wide-spread quarantine , extended disruptions to manufacturing , hinterland transportation and Port operations given the lower container volumes , the disruption extend into a global supply shortage of retail and manufactured goods and cut production, creating a dent in manufacturing activity on the global scale.
So, this will cause the container ship freight rates and the time charter rates will come under massive downward pressure.
Dry Bulk Shipping is set to be hit the hardest and seems will remain in depressed earnings.
Coronavirus has put Tanker freight rates under massive downward pressure too.
When everything will come to an end , we need to think how we can cover our losses.
