All of those professionals caring for Covid-19 patients are the true heroes of 2020 and beyond.
In my view, seafarers come next in line and are high in importance as they have ensured the world’s supply lines throughout the pandemic. Going forward, we will continue to prioritise the well-being of our seafarers.
After a year like no other, TradeWinds asked 40 shipping industry stakeholders what they see for 2021 after a year beset by the coronavirus, and how the pandemic will shape shipping's future.
Crew change challenges will continue well into 2021. International Seaways is proud we made this a top focus early on in the second quarter because logistics are just as challenging today, and the crews are weary. We have chartered flights, deviated ships and quarantined our seafarers, sequestered in hotels, before shipping out. We have been able to keep Covid-19 off of our ships, and this is a constant battle that we will carry on.
Keeping with the theme of “prioritise people and business will follow”, our shore staff have seamlessly adapted to working from home. With New York headquarters, the Seaways team has avoided mass transit and tight elevators during the Covid-19 waves by working remotely.
Our systems are on the cloud and our IT team had enough foresight to have us ready to carry on remotely. We have increased our scheduled meetings to replace the natural flow of daily contact, and we will continue our weekly town halls even when “normality” is restored. Seaways will resume an office presence when it is safe to do so, and we will incorporate more flexibility into our schedules.
During the pandemic, cyber-threats have multiplied. Unfortunately, these threats are likely to only become more sophisticated in the future. Annual table-top drills and training as well as security monitoring both at sea and ashore have become de rigueur, adding in another layer of expense for shipowners.
Covid-19 impacts will be felt going forward in the tanker business because oil demand has been significantly impacted. Air travel represented around 7m barrels per day of jet fuel consumed pre-Covid-19, and this has been heavily dented. Goldman Sachs is projecting a 3.9m-barrel-per-day increase of jet usage in 2021 especially as vaccines roll out.
Next year will be a pivotal one as demand is restored to the oil markets. Covid-19 made it challenging for many owners to carry out routine dry-dockings and vessel repairs. This maintenance will be prioritised in 2021. Owners have been increasingly reticent to order newbuilding vessels as decarbonisation is increasingly a focus.
Shipping responded very well to the combination of stressors that greeted us in 2020, and we can count on the industry to adapt going forward.
