Shipping must be prepared for wider spread of virus

UNFORTUNATELY, everybody in Singapore is now all too aware of the novel coronavirus that originated in Wuhan, China. The situation has moved on since the Maritime and Port Authority of Singapore (MPA) issued an advisory stating that on Jan 29 there was a confirmed case of a crew member with coronavirus infection, who was working onboard a ship in Singapore waters.

In the past fortnight, the international shipping has been gearing up to cope with the implications of the disease for an industry that is uniquely affected by the spread of such contagious diseases and the measures that need to be put in place to combat them.

Locally, the MPA has urged the shipping community to take precautionary measures, as well as to remain vigilant and adopt good hygiene practices at all times. Ship crew who feel unwell, experience respiratory symptoms (eg cough, shortness of breath) or feel feverish, should inform the master of the ship immediately. The master should then contact their ship's agent and make the necessary arrangements to seek medical attention.

It is too early to tell whether the coronavirus will be contained or become a pandemic, and just how damaging it will be to world trade and thus to shipping and bunkering.

But shipping's international nature means operations have already been impacted and certain sectors are particularly vulnerable. At the best of times, the cruise ship industry fights a continual war against contagious diseases, with norovirus normally being the main enemy. Lots of people living in close proximity, with lots of social interaction, make these vessels ideal breeding grounds for disease. To be fair to the operators, they go to huge lengths to ensure hygienic conditions and generally these days win the battle. I know from personal experience that passengers are never to allowed to forget the need to wash their hands frequently.

Nevertheless,the coronavirus has already gone cruising. A few days ago, I watched a television news report on the cruise ship Diamond Princess alongside the quay in Yokohama. At that time, some 70 passengers and crew had tested positive for the new coronavirus and had been taken to hospital. The rest had been confined to their cabins and the ship was going nowhere.

Meanwhile, Holland America's Westerdam has been trying to find a port that will accept her, following a call in Hong Kong. She has been refused entry by Guam, the Philippines and Japan, even though none of her 1,455 passengers and 802 crew have shown symptoms of the virus.

Clearly, the Asian cruising market is going to take an early hit. But the impact of the coronavirus is already being felt throughout the global shipping industry, and not just in the cruise sector. Tim Smith, director of oil and tanker markets at specialist consultant Maritime Strategies International notes: "The coronavirus is having a wider impact on oil markets, reducing global demand and prices." He says that this is likely to drive bunker prices down.

As maritime professionals' union Nautilus International has pointed out, the first people within the shipping industry to have to cope with the coronavirus are of course the seafarers. It is promoting the specific advice for shipping companies and seafarers issued by the International Maritime Health Association (IMHA).

The embarkation or disembarkation of seafarers in non-affected ports should not be restricted, IMHA advises. It also counsels against restricting necessary ship visits by port agents, chaplains, service personnel and others; visiting food markets in China; taking on fish or poultry in China; consuming raw eggs, milk, meat.

As well as those "don'ts", it advises several "dos". Strict food hygiene must be observed in the galley to avoid cross contamination. At least five sets of facial protection for each crew member should stored onboard. Companies should supply influenza vaccination, alcohol-based hand rub and facial protection to ship inspectors and other employees who travel to China.

Mutual marine liability insurer American Club has sketched out the operational issues that could arise. It says that, since the most important aim of the measures implemented by Chinese authorities is to avoid the spread of coronavirus which originated from Wuhan, Hubei province, there are no specific restrictions for vessels from abroad calling at Chinese seaports.

However, it warns, some general effects on shipping are inevitable. Loading and discharging operations in China have slowed down due to the lack of stevedores. Land transportation of cargo into and out of the country's ports are insufficient since non-locally licensed trucks are restricted from entering into the port area.

Generally speaking, the insurer advises, the supply of provisions to foreign vessels is not being restricted. Vessels due for repair in China may be delayed due to a shortage of labour.

Some export cargo might not be delivered to the loading ports in time due to transportation restrictions in and out of Hubei Province. It is reported that the China Council for the Promotion of International Trade (CCPIT) will offer force majeure certificates to local companies, if they are unable to fulfil their international contractual obligations due to the coronavirus outbreak. This does not appear to apply to foreign vessels yet.

However, the shipping industry needs to be prepared for potential restrictions in order to prevent the further spread of the coronavirus, according to maritime lawyers Hill Dickinson. A partner with the firm, Beth Bradley, says that shipping should be prepared to face the same issues that arose in previous severe disease outbreaks, such as with other coronaviruses or Ebola, such as infection of crew members, quarantine measures, closure of ports, and possible repercussions on charterparty obligations.

"While this outbreak is not currently anticipated to cause the global complications experienced by the Ebola and Sars outbreaks, it is wise for ship operators and charterers to be prepared for any greater spread of this virus," she says.

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