The recent grounding of one of the world’s largest vessels in the Suez Canal has had a devastating impact on maritime trade and supply chains and highlighted the risks involved in the operations of ultra-large vessels.
The number of containers falling overboard has dramatically increased recently, exposing shipping companies to fines and higher insurance premium. There are multiple factors driving this surge in incidents that need to be addressed.
In the last year, the cargo insurance market has faced sharply hardening rates as insurers aimed to boost profitability. However, there is now growing evidence of rate stabilisation.
Right now, the Covid-19 vaccine is perhaps the most coveted commodity in the world. Protecting this cargo during its journey around the globe and enabling it to safely reach its destination is a tremendous challenge, not only because the vaccine needs to be kept at temperatures of up to -70°C, but also because the shipments are likely to attract criminals trying to steal and/or divert the contents.
The pandemic has caused an imbalance between demand and supply globally which disrupted the cargo sector, creating new risks that need to be addressed.
There are increasing signs that the coronavirus Covid-19 outbreak will significantly impact international trade and the shipping industry.