Reducing the impact of COVID-19 on the global marine industry

Like many critical sectors, the world’s shipping industry has faced great adversity in the wake of COVID-19. On a supply chain level, the pandemic has created huge delays and costs for shipping companies. For crews, the situation is equally dire.

At the end of February 2022, Francesco Garguilo, CEO of the International Maritime Employers’ Council Ltd., told Bloomberg that outbreaks of the Omicron variant are hitting ships globally, with cases rising “exponentially”.[i] Indeed, seafarers themselves have been among the hardest hit during the pandemic. According to the International Maritime Organization, travel restrictions have curtailed vaccine access for crews, creating “significant hurdles to crew changes and repatriation of seafarers”.[ii]

For shipping company operators, the challenges have been unprecedented. For the past two years, the pandemic has ushered in huge delays which have affected the entire supply chain. Now, with the onset of the Omicron variant, there are likely more woes ahead.

According to a recent article in the Economic Times, “a jump in sustained cases adds pressure to supply chains already strained by the pandemic. Ports from Shenzhen to Los Angeles and Rotterdam are contending with ling lines of cargo ships, while a shortage of workers and drivers are adding to the snarls”.[iii] All this could up to soaring costs for operators as goods are trapped at sea or sit dockside – particularly if they don’t have adequate insurance coverage to cope with the ongoing crisis.

Help at hand in Hong Kong

In Hong Kong, a city renowned for its position as one of the world’s key marine freight and logistics hubs due to its deep-water harbour. MSIG, which specialises in marine cargo and freight forwarder’s liability, has worked diligently over the past two years to provide solutions to its marine clients in the face of challenges posed by COVID-19.

Since the pandemic began, MSIG has strived to provide professional advice for marine customers via a dedicated team of marine insurance specialists. For example, during the early days of the pandemic, claims specialists advised cargo owners and freight forwarders on ways to reduce risk and delays through the implementation of controls, such as adjusting packing and delivery methods. As the situation deteriorated, MSIG was on hand to ensure smooth claims payments as operators faced further operational hurdles.

Today, the company continues to pride itself on offering a range of products that can be tailored to the specific needs of marine clients, while offering world-class customer service, fast claims processing times for online submissions, and competitive pricing. MSIG remains committed to its clients by protecting their businesses and providing advice on risk control and loss prevention. In doing so, the company aims to be the partner of choice for clients seeking marine insurance solutions in a changing world.

To find out more about MSIG Hong Kong’s Marine insurance plans, please feel free to contact us or find out more about our insurance plans here:

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