Pandemic has led to a severe impact on the shipping industry and supply chains

Pandemic has led to a severe impact on the shipping industry and supply chains

Coronavirus has not left a single industry unaffected from its disastrous impact. Every sector, every industry, every wing of the economy is struggling through this tough time. Among all of these, the shipping industry has felt the biggest blow. As the shipping industry deals with the inter-country movement of goods and people, most countries have imposed different kinds of restrictions which are making the industry suffer a lot.

Allianz Global Corporate & Speciality SE’s(AGCS) has predicted the upcoming challenging time for the shipping industry which includes the coronavirus pandemic and dealing with its impact. Andrew Kinsey, Senior marine risk consultant at Allianz Risk Consulting has said that he is looking at the situation daily.

As per him, the whole supply chain has got affected starting from the production lines to the maintenance of port calls. AGCS has come with a 10 point list of challenges that the shipping industry is facing. Well, this is all due to the Coronavirus pandemic. One significant problem that has gotten enlisted is the inability to change crews.

This one problem is leading to more sub-branches of the problem. It is increasing the human error in the shipping industry which is costing a huge amount to the industry. According to AGCS 2020 around 120 countries have imposed total restriction on it and 92 have prohibited crew changes.

Coronavirus is a global pandemic and the shipping industry has to deal with all kinds of problems at every location they touch in their journey. But the industry hopes positively and there is also some good news. It has to face only 41 total losses which are 70% low in 10 years. Information communication is playing a vital role in curbing losses.

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