Maritime resilience during the COVID-19 pandemic: impacts and solutions

Abstract

PurposeThis study aims to study the resilience of the maritime industry by analyzing the impacts of COVID-19 on the maritime industry, in particular, on the shipping management aspect and offshore sector, investigate the effectiveness of current solutions and recommend future solutions for the industry to reduce or mitigate the negative impacts.Design/methodology/approachIn order to better appreciate resilience in the maritime industry, the study conducted secondary research and semi-structured online interviews to (1) identify the impacts of COVID-19 on the shipping management and offshore sector, (2) analyze the effectiveness of current solutions and (3) provide some strategies to enhance the effectiveness of the current measures.Findingshe results are congruent with existing literature which indicate that the pandemic has negatively affected the global economy, changed the global trade network and contributed to the sharp decline in demand for oil. In response to the pandemic, governments have implemented safety and health-related measures such as lockdown, safe-distancing and travel restrictions. Often, measures differ from countries to countries and these non-standardized and changing regulations further increase the challenges faced by the industry. From the shipping management perspective, the industry experienced issues such as crew changing, trade contraction and the expiration of shipping certificates, which supported and validated current research. Meanwhile, the offshore industry is challenged by the increasing market volatility and uncertainty, increasing need to source for alternative fuels and the declining oil exploration activities. Current strategies adopted by shipping management companies include crew change management, capacity management and the extension of ship certificates, whereas offshore industry chose to collaborate with oil majors.Research limitations/implicationsBy identifying the impacts and challenges and studying the effectiveness of solutions adopted by the maritime industry, this paper allows maritime industry stakeholders and policymakers to develop strategies to mitigate the effects of the global health crisis and strengthen the resilience of the industry. However, as the pandemic continues to develop and evolve, strategies need to be reviewed continuously in response to the changing situations.Originality/valueThis research analyses the impacts and solutions in response to the COVID-19 pandemic, which contributes to the development and formulation of strategies to strengthen the resilience of maritime transport.