A REPORT ON

“A STUDY ON SHIPPING INDUSTRY ROLE VS.

OPERATION MANAGEMENT DURING COVID 19
LOCKDOWN” 

A PROJECT REPORT SUBMITTED FOR COMPLETION OF SUMMER

INTERNSHIP PROGRAM AFTER
SEMESTER 2 FOR THE DEGREE OF  
MASTER OF BUSINESS ADMINISTRATION
(MARITIME MANAGEMENT)  

BY
TAUSIF DOSHANI (Roll No.31911)
UNDER THE GUIDANCE OF
DR. MEHAL PANDYA
Associate Professor and HOD(Maritime)
 AT THE
B.K. SCHOOL OF PROFESSIONAL AND MANAGEMENT STUDIES
GUJARAT UNIVERSITY
NAVRANGPURA, AHMEDABAD-380009
GUJARAT – INDIA
2020
Table of Contents:

Certificate:............................................................................................................4
Acknowledgment:.................................................................................................5
Abstract:................................................................................................................6
Introduction:.........................................................................................................7
Objectives:..........................................................................................................10
Literature Review:..............................................................................................11
Research and Analysis:.......................................................................................23
Research Methodology:......................................................................................27
Conclusion:.........................................................................................................28
Bibliography:......................................................................................................28
Certificate:

This report is the bonafide work done by Tausif Doshani, Enrollment No. 20190640012,
student of 2nd semester of Maritime management Department of B.K. School of Professional
and Management Studies, under the guidance of DR.Mehal Pandya (Associate professor And
HOD) for the completion of Summer Internship Program(SIP).

Guide: ___________________

Internal Examiner: ____________________

External Examiner: ____________________

Head of Department: ____________________

Acknowledgment:

In the accomplishment of this project successfully, many people helped me, I want to thank
all of them who have been concerned with this project. I especially like to thank my guide
Dr.Mehal Pandya (Associate professor and HOD) , whose valuable guidance has been the
once that helped me in properly understanding this project and make it a full-proof success.
Her valuable suggestions and her instructions have served as the major contributor towards
the completion of the project. Then I would like to thank my classmates who have helped me
a lot, they are also a major contributor for helping me to complete this project.
I would also like to thank my parents and friends who gave me moral support throughout the
completion of the project.
Abstract:

We all know that shipping industry transport world’s 90% of cargo by volume and 70% by
value so this industry plays major role in continuing international trade and managing supply
chain on the other hand this is the industry which is most hit by pandemic, in that In many
countries, governments imposed “lockdown” to restrict the movements of its citizens and to
control the rapid spread of the pandemic. First of all, lockdown was imposed in Wuhan
Capital of Hubei which is also thought to be the Origin of Coronavirus pandemic lockdown
was imposed from 23rd January to 8th April, 2020. In India lockdown was imposed in 4 phases
totalling 68 days in months of March, April and May. This lockdown created port
congestions because there was very less availability of trucks and drivers and this increased
the turnaround time of vessels. Due to lockdown there were also disruptions in supply chain
network. It also effected liner services due to congestion at ports some liner vessels were not
calling the ports and were skipping those ports that affected port calls and liner services had
to make blank sailings. So, in this report we are going to discuss how this lockdown situation
due to coronavirus impacted shipping industry and Its operations.
Introduction:

In global freight transportation system shipping industry plays a major role. Around 90% of
the cargo of international trade in being transported by shipping industry. It is the most
affordable and efficient mode of transporting goods, vessels can transport cargo in bulk
quantity from one place from another no matter what distance is between those two points at
very low cost and with more safety than Rail, Road and air etc. The world economy relies on
the movement of commodities and goods across oceans, in the air, and over railways and
highways. The ceaseless flow of materials and products is often out of sight and far from our
attention, but life would be vastly different for most of us without the necessities and
conveniences made possible by the shipping industry.

View of Global Shipping Industry:

 China, Korea, and Japan are the largest ship-builders in the world. China and Korea
are directly competing for the top place and japan at a distant third. The three countrie
together account for 92% of the global deliveries in 2016.
 The top five countries in terms of cargo carrying capacity are Greece (308.8 mil. Dead-
Weight ton (DWT)), Japan (223.8 mil. DWT), China (165.4 mil DWT), Germany (112 mil
DWT) and Singapore (104 mil DWT). Germany, China and Greece own 39% of the world
container carrying ship fleet.

Break up of vessel by Cargo type

 Dynamics of Industry

View of shipping industry in India:

The Maritime industry in India is an integral part of the country’s logistics costs accounts for
close to 14% of the country’s GDP. The industry gains significance owing to the country’s
7,517 km coastline and 12 major ports & over 150 non-major ports along the long coastline.
The 12 major ports cater to EXIM, coastal shipping and cruise shipping. Among the non-
major ports, only 30-35% of the 150 ports can cater to coastal shipping and much fewer can
cater to EXIM trade. In terms of maritime cargo handled in the country, major ports
registered a growth of 4.77% during FY18 at 680 million tonnes.

 9 out of the total 12 major ports registered positive traffic growth.

 Cochin port registered the highest cargo handling growth at 16.5%. Other ports registering
positive growth are Paradip, Kolkata, JNPT, Mangalore, Vizag, Kamarajar, Chennai and
Kandla.
 Kandla Port (Deendayal Port) handled the highest volume of 110.10 million tonnes among
major ports. The other ports among top 5 ports are Paradip, JNPT, Vishakhapatnam and
Mumbai. The top 5 ports together accounted for 60% of the total cargo volume handled by
Major ports in India.
 Commodity-wise, Petroleum and its products accounted for 31.5% of total cargo volum,
followed by containers (19.7%), Thermal and Steam Coal (14%), Misc. Cargo (13.6%),
Coking and Other Coal (7.45%), Iron ore and pellets (7.15%) etc
View of shipping industry in Gujarat:

 Gujarat is strategically located with India’s longest coastline of 1600 km and is the nearest
maritime outlet to Middle East, Africa and Europe.The state has the highest number of
operational ports and commercial cargo ports.
 The state ranks first in cargo throughput amongst all Indian ports.The state has 42 ports
which include 1 major port and 41 non-major ports which are geographically dispersed
across south Gujarat, Saurashtra and Kutchch region.
 The share of GMB ports from total non-major ports of India is about 72% and Gujarat
non-major Ports handled 32% share of total national cargo in 2014-15, up from 3% in
1982.State Govt has successfully developed private ports at Pipavav,
Mundra,Dahej,Hazira.
 Gujarat ports’ total capacity is that of 466 MMTPA in 2015-16. It is estimated to increase
to about more than 864 MMTPA in 2020. This includes capacities at all private sector,
joint sector ports and private and captive jetties. The major capacity addition is in the form
of expansion of existing ports, development and expansion of Captive jetties and Single
Buoy Mooring (SBM) facilities along with development of Greenfield ports. The capacity
utilization ratio at Gujarat ports has remained around 73% since last 3 years.
 There are total 10 operational shipbuilding yards in the state with the capacity of 1.11
million DWT. Major operational shipyards are ABG Shipyard at Dahej and Magdalla with
capacity of 80,000 DWT followed by Pipavav shipyards, L&T Shipyard at Hazira. Apart
from these, there are many shipyard projects under the implementation stage. Gujarat is
strongly emerging as a new shipbuilding destination in South Asia with many projects in
pipeline. The Shipbuilding Policy 2010 of Gujarat maintains share of 60% i.e. 3 million
DWT of National target (5 million DWT) in Shipbuilding/repair market.

There are basically two types of shipping services:

1. Liner Service:
Liner Service is a service that operates within a schedule and has a fixed port rotation with
published dates of calls at the advertised ports. A liner service generally fulfils the schedule
unless in cases where a call at one of the ports has been unduly delayed due to natural or
man-mad causes.

Example: The UK/NWC continent container service of MSC which has a fixed weekly
schedule calling the South African ports of Durban, Cape Town and Port Elizabeth and
carrying cargo to the UK/NWC ports of Felixstowe, Antwerp, Hamburg, Le Havre and
Rotterdam.

2. Tramp Service or Tramper:

Tramp Service or Tramper, on the other hand, is a ship that has no fixed routing or itinerary
or schedule and is available at short notice (or fixture) to load any cargo from any port.

Example: A ship that arrives at Durban from Korea to discharge cargo might carry some
other cargo from Durban to Oakland in the West Coast if USA. which is in an entirely
different direction. From Oakland, it could carry sone cargo to Bremerhaven.

As we are going to understand the operations of ports during pandemic first, we need to
understand what is Shipping & port industry and what kind of operations are being taken out
in normal conditions and also, we have to get to know what is what is pandemic and how
does it affect the supply chain network, demand and consumptions this effect on supply chain
network, Demand and Consumptions at the end effects the ports and its operations. We have
to get to know about the actions taken by Government in Hinterland of port during this
pandemic time to get control over community spread of Covid-19 and for this Government
has to put some restrictions on transportation and commutation which stranded the trucks
and trains which are essential for the ports to clear containerized and bulk cargo.

During this pandemic vessel operators has to obey the rules and regulations framed by
International Maritime Organization and the Government of the region in which they are
operating. Rules framed by IMO as well as the Government are regarding movement of crew
and cargo on port.

Objectives:

 To identify the effect of coronavirus pandemic on the shipping and port industry all
around world.
 To know the timeline in which this pandemic effected the shipping industry and its
operation.
Literature Review:

The rapid spread of coronavirus has had a major impact on global shipping markets, with the
slump in demand for goods from China having a ripple effect on everything from container
ships to oil tankers. In part 1 of our coronavirus special, we look at how it has unfolded so
far. Initially, everyone thought that it was China’s problem. Nobody thinks that anymore. The
first country to be hit by Covid-19 is now the only one with a recovering economy and re-
emerging population. For the rest of the world, uncertainty is the only certainty.

The soon-to-be global pandemic began in late December with only a dozen cases in Wuhan,
China. The coronavirus outbreak has now tightened its grip on the entire world, with Europe
as its epicentre. As of the 18th July it has now infected almost 14,00,000+ people and
claimed nearly 6,00,000 lives. With Western countries enforced nationwide lockdowns that
could last for months if not years, world economies are in danger of bleeding out. Numerous
industries are at a standstill and the shipping sector is navigating uncharted waters.

January: A shock for the Chinese maritime sector

We can see in figure above that Exports and New Export Orders have gone down drastically
as the news of outbreak spread through globe.
We know that china is in top position in shipping industry, It is also a major trade partner for
several countries and leader in shipbuilding. Coincindetly this pandemic situation is started
from the country which is having major stake in shipping industry as well in international
trade.
In the starting period of pandemic there was no major impact on port oprations, ports
witnessed minor fall in throughput because of minor fall in demand. This outbreak came at
the time when there was usually low demand due to Chinese New Year(CNY).
According to figures from Chinese think-tank the Shanghai International Shipping Institute,
this led to reduced capacity utilisation – which fell between 20% and 50% at the biggest
Chinese ports – and a sharp increase in the use of port storage facilities.

February: the impact on global shipping

As we have seen that purchasing managers index deopped from 51.1 to 40.3 in February it
was the sharpest deterioration in last 16 years.

Mid-February data from market intelligence service Vessels Value showed a huge drop in
demand for Chinese crude tankers from an average of 3.4 billion tonne miles per day in 2019
to almost zero. According to the company’s Charter Rate assessment, the daily cost of hiring
a very large crude carrier (VLCC) for a year plummeted by over 20% between 14 January
and 14 February 2020. Spot earnings also decreased by more than 70%.Analysis from
BIMCO is further testament to this trend, as it showed VLCCs and overall tanker freight rates
were subjected to heavy downward pressure towards the second half of February. “Earnings
from the Persian Gulf to China have dropped from $103,052 per day on 2 January to $18,326
per day on 18 February 2020,” said a blog post from BIMCO at the end of the month.
In February, capesize was another heavily affected category, which is in largely driven by
China. “The problem with capesize is that the market had been terrible anyway, and it’s
gotten even worse,” said Economakis in March. “It is effectively reaching a five-year low at
around just over $2,000 a day earnings, which means they’re losing a lot of money per day.”

Finally, the container sector, another category that significantly relies on China, fell victim to
the coronavirus outbreak. As Economakis put it, “The container sector is naturally less liquid
but we have seen a reduction in rates and values. Containers are the most closely linked to
economic activities and economic activity is down all around the world.

“The story here is the reason that coronavirus is having particularly horrendous effects on the
shipping industry is its relationship with China. China really is the driver of the shipping
industry. We are so dependent on Chinese demand and also Chinese exports, so demand for
raw material, exports of a finished product for driving cargo volumes and cargo demands.”

March:

The average daily time charter rate for a 12,500 dwt/F-type heavy lift vessel stands at
USD7,221 for March 2020. In February 2020, the rate was USD7,415.

Traffic handled by mjor ports:

 Chart Title
March FY19 March FY20 Change(%)

5.79
Million Tonnes

3
122.5 112.67
68.45
115.4 109.28 46.7
70.71 53
-3.3 -13.49
Deendayal Port Trust Paradip Port Trust Jawaharlal Nehru Chennai Port Trust
Port Trust
Axis Title

Overall there is 0.82% increase in cargo handeling at major ports to 704.63 million tonnes of
cargo in the year to March 2020.

April: Signs of recovery?

In the fourth month of pandemic the data VesselsValue shows there is increasing demand in
capesize cargo mile, led by a recovery in demand from Japan and South Korea, Earnings are
sill under $ 6,000 per day on 1st April which is up from $2000 in early March. Recovery is
also seen is container shipping as sailings are increased originating from China. The major
problem is that industry is continuously operating with huge capacity, but as for dry bulk
shipping five million deadweight being sold for demolition in the first three months of 2020.
This shipbreaking is most needed step in oversupplied market like shipping wher players are
ordering huge vessels to cope with this peak raise in supply is to demolish vessels which are
over aged and are in low demand.

India’s Foreign Trade Data

Long term impact of coronavirus on shipping:
Investment in freight technologies

While it’s almost impossible to make short-term forecasts for the shipping sector once the
pandemic has slowed, Paul Cuatrecasas, CEO of investment banking firm Aquaa Partners and
author of Go Tech or Go Extinct, believes the post-coronavirus years will be all about digital
disruption. In a media briefing held at the end of March, Cuatrecasas explained how the
health crisis might spur investment in different segments of robotics and freight technology,
which will in turn lead to a change in headwinds across the sector. “Demand has dropped
across the board, including at ports, the trucking industry, the shipping industry, almost
anywhere you look,” he said. “Covid-19 has just slapped everybody in the face so get ready
because what’s coming is going to be even greater disruption in different forms. “But
disruptive doesn’t necessarily mean damaging, as he mentioned the crisis could become a key
catalyst for digital and technological advancements in the shipping industry. 

Change in these regards could be threefold. The first step will be increasing investment in
freight technologies as well as companies providing data analysis, artificial intelligence
software and overall end-to-end supply chain management. This will be key as it “reduces the
shock, increases the resilience, [providing] more data, more information, greater ability to
manage inventories to track the rates and timing of the shipping that is done”.

Increased investment in these segments will be accompanied by growth in the autonomous

transportation sector, paving the way for autonomous shipping. “This is not just because
[automation] is cheaper, or more efficient,” he said. “The nature of autonomous activities is
one that can solve many, many problems, and deal with resilience in the core.” Lastly, there
will be more space for cultured meat and fish, something that will disrupt the entire supply
chain. 

These will translate into the further evolution of e-commerce into a largely tech-savvy
industry with cargo drones, 3D printers and robotics at its disposal. “Covid-19 will have a
disruptive power across all industries but particularly in the supply chain and in the
transportation sector, it won’t just be in the short term,” he concluded. “Investment into
freight tech companies will help the existing industry to connect all the different players,
shippers, brokers and carriers in the maritime basis to optimise current operations.”

Coronavirus outbreak: Measures and preventive actions by ports

The coronavirus outbreak has led to a decline in the number of ships calling on Chinese ports
including Shanghai and Yangshan in January, as factories across the country remain closed or
operating at low capacity. The number of port calls at Shanghai and Yangshang declined by
17% in January, compared to the same period in the previous year.
Carriers have blanked 21 sailings on the US-Asia Pacific trade route with the primary reason
being weak demand in China. The cancellations are in addition to 66 cancellations that took
place during the Lunar New Year resulting in 199,000 20 tonne equivalent (TEU) units of
reduced capacity.
On the Asia-Europe trade route, a total of 61 cancelled sailings have been announced,
representing a 151,000 TEU capacity reduction.
The biggest impact of the cancellations is expected to be on Maersk due to its wide exposure
to container shipping and port terminals. The company’s operations in China represent 30%
of its annual shipping volume. Hapag Lloyd is another company that is expected to witness a
weak first quarter as its operations in China account for 25% of group revenue.

China
The coronavirus outbreak is having a major impact on the shipping industry in China, which
is home to seven of the busiest ports in the world. Although loading and unloading operations
are functioning normally, barge service is delayed at all ports.
Few container depots in Shanghai, which is the busiest port in the world according to United
Nations Conference on Trade and Development, are closed until 10 February.
The government has implemented restrictions on some of these ports to contain the spread of
the disease. Crew disembarking has been completely restricted at all ports. Any vessels
berthing at Tianjin, Dalian and Xiamen ports are required to provide a health declaration
before berthing. Vessels with crew from Wuhan or the Hubei province are restricted to berth
at the Putian and Quanzhou ports. At the Ningbo port, such vessels will be placed under
isolation for 14 days before berthing.
Substitution of crew at the Shanghai, Xiamen, Ningbo, Tianjin, Dalian, Qingdao and
Guangzhou ports has been prohibited. Wearing facial masks and temperature checks
everyday has been initiated as a preventive action for coronavirus.
United States
The US Coast Guard issued a notice on 02 February 2020 stating that any passenger vessels
or vessels carrying passengers, which have been to China or embarked passengers in China in
the last 14 days, will be denied entry into the US. Any passengers who exceed the 14-day
period and are symptom-free will be allowed entry into the US.
Non-passenger vessels are allowed to operate in the US with restrictions if they have been to
China or embarked passengers in China within the last 14 days under the condition that there
are no sick crewmembers. Any vessels with sick crew members are required to notify the
nearest Coast Guard Captain of the Port.

Singapore
The Maritime and Port Authority of Singapore (MPA) has implemented temperature
screening at all sea checkpoints, including ferry and cruise terminals. Visitors having a travel
history in Hubei or possessing PRC passports issued in Hubei, will not be allowed to enter or
transit through Singapore.

Australia
Australia initiated additional border screening and isolation measures on 01 February. Any
vessels that have left China or transited through the country after 01 February and less than
14 days prior to the date will be required to meet coronavirus requirements set by the
government.
The same applies to vessels with crew of passengers, vessels with ill passengers and vessels
having crew of passengers who have come in contact with confirmed cases.
Passengers or crewmembers on all vessels departing or transiting through China will not be
allowed to disembark from the vessel until a biosecurity officer screens them for coronavirus
and other infectious diseases. Based on the advice of the biosecurity officer, the passengers
will either be asked to self-isolate as a preventive measure or undergo further tests.

Japan
Diamond Princess cruise ship owned and operated by Princess Cruises was quarantined off
the coast of Yokohama after a suspected case of coronavirus infection was reported on 03
February. Close to 700 confirmed cases have been reported on the ship, which had 2,666
guests (majority from Japan) and 1,045 crew on board.
The Japanese health authorities commenced the disembarking process on 19 February for
those passengers who did not display any symptoms of the disease since the beginning of the
quarantine period and tested negative for the virus.
Considered as the gateway to Japan, the Yokohama port recently inaugurated the Shinko Pier
terminal. The Diamond Princess cruise ship was the first to call on the new terminal. The
Land, Infrastructure, Transport and Tourism Ministry of Japan noted that 13 out of 14 cruise
operators have cancelled their scheduled tours to Japan, as reported by Japan Times.

Covid-19 S.O.P for Port Operation at Indian Major Port:

1. Only one Agent will be allowed for each ship to do the duty.
2. Agent will not visit your ship on daily basis and any communication can be done by
email or phone. Plan all your query as much as possible at berthing time only.
3. Customs, Immigration, CHA, Surveyors, Stevedores formalities to be done in the
meeting room only.
4. Disinfection of the doors, railings, Meeting room, tally room are to be done thrice daily.
5. The ISPS log will not be entered by the Ship Crew and only Gangway watch will be
allowed.
6. The Shipping agent will record all the persons (Authorities/Stevedores) who visited the
ship with entry and exit time till sailing and the same will be sent by Excel Sheet to the
PHO, Immigration and the Master by email. So, the ISPS log can be updated based on
this. This is to avoid any cross infections to the crew and for shore persons. Also, to
prevent confusion of any flu infection from shore persons as COVID-19 for ship crew.
This will prevent any further sanitary measures for the ship which may include
quarantine of ship and all the crew for 14 days as contacts.
7. The Ship crew who are required to assist the stevedores on deck must be only minimum
1 or 2. All the Ship crew to maintain 6 feet distance from the shore persons. The rest of
the crew must be inside the accommodation if they are not required on deck.
8. The Shipping Agent/Stevedores will measure the temperature of self, Authorities and all
the Stevedores shift wise. If there are any sick persons, they must not be strictly allowed
to board the vessel. The Excel sheet report must have the temperature at beginning and
ending time in each shift.
9. The agents, stevedores and surveyors are not allowed to enter accommodation deck
unless its official and restricted to the meeting room only.
10. No one is allowed to enter the mess room or use the toilets or eat food or drink water or
sleep on board.
11. The Stevedores to provide Water in each hatch two 20 litres pet bottles.
12. The use of PPE (Masks and Gloves) must be only on ship deck or when entering the
Accommodation Deck Meeting Room and not when working on Wharf or Jetty.
13. Safe Disposal of the PPE is very important and must be collected in a Zip Lock Cover if
its individuals and in Bio Hazard Bags for Stevedores after each shift if in large
quantity. All PPE are single use only and must not be reused.
14. The Agency to prepare a slip with Name of the Ship, Berth Number, Shipping
Agency/Stevedores details and hand over to the Sargent at the Port Trust Hospital
Casualty.
15. No unauthorized visitors or merchandise persons will be allowed to visit the ship. All
ship Chandlers are to first intimate the Shipping Agents before they visit the ship.
Master is adviced not to entertain any visitors without Shipping Agent knowledge.

Tracking Vessel Activity at Key Ports throughout COVID-19

Looking at Figure shows how port callings have changed throughout 2020 compared to 2019
given the presence of COVID-19. The callings in 2020 are expected to be higher than 2019
due to increases in Automatic Identification System (AIS) coverage and port zoning
improvements. The values in 2019 and 2020 are similar in January and February with 2020
slightly higher as expected but in March to May the values in 2020 drop below that of 2019
showing a decrease in activity. This may reflect the large proportions of the globe under
lockdown from March onwards. Regional analysis (Figure 2) shows that APAC (China,
South Korea, India & Japan) saw the biggest decrease in February. In the Americas region
(US & Brazil) the biggest hit was shown in April. Europe regions (UK, France, Germany &
Russia) show the smallest changes month-on-month.

Number of port callings and difference for 2019 v 2020. Countries included (All ports & Ship types) are Brazil, China,
France, Germany, India, South Korea, Japan, Russia, United Kingdom and United States. Source: IHS Markit Maritime Data

Month-on-Month Percentage change in port callings per region during COVID-19. APAC - China, South Korea, India,
Japan. AMER - US & Brazil. EMEA - UK, Germany, France & Russia Source: IHS Markit Maritime Data
Number of global container ship over 8000 TEU in operation. (Data source: www.shipxy.com)

Americas Region

We can see from the bars above there is no significant effect on port calls in America
continent because in US there was no strict lockdown imposed as Asian countries. Lockdown
was imposed on state basis not in whole country in once. In Canada strict travel restrictions
and quarantine were introduced relatively early compared to the number of cases in Canada at
the time. This swift action has been successful in maintaining a low death toll. Vancouver
also seems to have remained resilient with relatively high levels of calls in March & April
suggesting a lower impact of COVID-19.

Asia Pacific Region

European Region

Role for the blue economy in post COVID-19 recovery and resilience?
 There is a clear unprecedented need for recovery and resilience measures. Some of
recommended actions that could be deployed to enable a faster blue economic recovery in a
post COVID-19 phase include the following:
 Apply the least possible trade-restrictive response measures within the policy objective sought to all goods
and services sectors, including blue economic ones;
 Exercise due restraint in scaling up “hidden” sanitary protectionism and closely monitor trade-related
response measures;
 Introduce sanitary and social safety readiness and adaptation plans for most vulnerable key blue economic
workers in tourism, maritime transport, fisheries and seafood processing;
 Monitor developments in shipping and address bottlenecks hampering trade in critical goods and materials.
Key factors to monitor are the time ships spend in port and the reliability of schedules;
 Minimize unnecessary controls and burdensome procedures associated with goods (including of marine
origin) clearance to ensure that trade facilitation gains achieved over the years are not eroded;
 Keep up the fight against illegal fishing in all shores and rely as much a possible on electronic monitoring
and surveillance systems complemented with targeted inspections and interventions at sea and port;
 Extend fishing seasons, when below total allowable catch, according scientific evidence and without
disturbing reproduction periods, so fishers can compensate lack of activity during confinement periods;
 Support fresh production shifts to seafood processing when feasible, as well as new product development
and effective logistic support;
 Enhance coordination between fish and seafood suppliers with transport, warehousing and logistical
services in order to avoid loss of produce and food waste;
 Design and implement rescue policy packages for vulnerable populations in blue economy sectors and
actors;
 Phase out unsustainable public expenditure including fish and fuel subsidies, diverting resources to
alternative biodiversity enhancing policies
 Expedite public and private debt forgiveness, total or partially, particularly for SIDS and LDCs.

Govt falls back on freight stations to de-congest ports during lockdown

container freight station (CFS) operators have suddenly become a messiah for the
government, by helping ports from getting choked as importers fail to clear cargo for reasons
that can be attributed to the lockdown. Import laden containers arriving at a port are typically
moved to nearby CFS, an industry practice designed to de-congest the ports. Sometime in
2006, the government introduced the direct port delivery (DPD) system, whereby import
containers are delivered directly to pre-approved clients at the port itself, thus reducing cargo
dwell times and cost for shippers. The CFSs were hit by lower volumes, as a result. But the
coronavirus outbreak has reversed that trend; though the CFS operators are being squeezed
from both sides – by the government and the importers.

34 CFSs servicing Jawaharlal Nehru Port Trust (JNPT) have evacuated some 100,000
containers from the five container terminals operating at the port in 5 days from the day govt
orders to do so. Of this, 25,000 containers have been cleared by the importers from the CFSs,
leaving a backlog of 75,000 containers that have to be cleared.
PSA SICSL invokes force majeure at V O Chidambarnar Port Trust as virus
disrupts trade
PSA SICAL Terminals Ltd, the entity that runs a container terminal at Central government-
owned V O Chidambaranar Port Trust (VOCPT) in Tamil Nadu’s Thoothukudi district, has
invoked force majeure in its licence agreement after the volumes slumped by as much as 75
per cent since April 1 due to the combined effects of the coronavirus and lockdown
restrictions.

Maritime logistics players openly defy Shipping Ministry order on waiving

charges
The container freight station (CFS) operators have told the statutory authorities that they
operate as per as the guidelines issued by the Customs Department under the Handling of
Cargo in Customs Area Regulation, 2009 (HCCAR).

As government wields stick, EXIM logistics players fall in line

the Director General of Shipping (DGS) issued an order asking shipping lines not to levy
container detention charges on export-import shipments during the extended lockdown period
till May 3. In an earlier order on March 29, the DGS had “advised” lines not to collect
container detention charges from March 22 till April 14.
A similar order was issued by the DGS on March 31, “advising” shipping lines not to levy
various charges on non-containerised cargo (bulk, break bulk and liquid) from March 22 to
April 14.
On Wednesday, the DGS issued an order extending this period till May 3, sans the “advisory”
and made it more “binding” on the carriers. “It is now decided, that for the second lockdown
period, the shipping companies or carriers (and their agents) shall not charge on cargo
owners/consignees of non-containerised cargo…”.

Conclusion:

As this industry is much important for all nations to get needs completed their needs so in this
hard time of pandemic Govt. restricted peoples to get out for work and other thing but it
allowed this industry to run its operation with stringent safety standards. This industry
continuous supplies essential goods like medicines, PPE kits even certain businesses started
new service for examples CMA CGMs’ Business continuity pack in which they were giving
priority to essential goods and they gave option to other traders to delay their consignment
according to their will so consignment reaches destination when the consignee is able to
receive the consignment. So, in this way shipping companies altered their operations
considering rules and regulations laden by local government of the region as well as IMO and
ICS.
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