Global Maritime Issues Monitor 2020: Economic crisis remains top concern for shipping

by 6, Oct, 2020Innovation

The Global Maritime Issues Monitor 2020 was published Tuesday by the Global Maritime Forum, global insurance broker and risk adviser Marsh, and the International Union of Marine Insurance.

2020 is the first year where pandemics are an issue in the annual ranking and the report revealed that the maritime industry is not prepared. Immediately, it received the lowest preparedness score of the 19 global issues included in the survey of senior leaders from six continents.

Main findings

1.COVID-19 increases the likelihood of a global economic crisis

Firstly, this year’s Global Maritime Issues Monitor has a special focus on how COVID-19 will affect the maritime industry in the next 10 years.

It will be critical for the industry to consider health impacts as it evaluates its response to COVID-19, particularly issues of physical and mental wellbeing for seafarers. There is a range of workforce issues for the industry to tackle in developing resilience against the next pandemic, including seafarers being unable to join their families,

…says Marcus Baker, Global Specialty Head, Marine & Cargo, Marsh JLT Specialty.

One red flag in the report relates to the perceived likelihood of future pandemics. Although respondents rank a new pandemic as likely to occur, they place it tenth in likelihood compared to other issues. This mid-point ranking presents a warning and organizations cannot afford to ease up on overall pandemic resilience efforts.

Particularly, the most resounding response to COVID-19 among decisionmakers is its connection to a global economic crisis.

93% of leaders believe that COVID-19 makes a global economic crisis more likely.

This is visible in the likelihood raking where a global economic crisis jumps from no10 in 2019 to no2. This is the biggest shift in respondents’ views on the likelihood of the issues in the survey.

A global economic crisis has moved from ‘likely’ in our survey to a harsh reality and, for the third year in a row, it is the issue that respondents believe can have the greatest impact on the maritime industry in the next 10 years,

…states Marcus Baker.

2. Environment remains top of mind

Additionally, climate and environmental issues, which dominated the Global Maritime Issues Monitor’s 2019 impact ranking, remain high on the list.

Climate change, decarbonization of shipping, and new environmental regulation increase in rankings of impact, likelihood, and preparedness.

Namely, leaders perceive new environmental regulation as the most likely issue to occur in the upcoming 10 years.

The coronavirus pandemic is rightfully given high priority, but the industry cannot afford to lose track of the long-term threats posed by climate change. It is crucial that we stay alert,

…adds Peter Stokes, Chairman, Global Maritime Forum.

Therefore, decarbonization of shipping takes the second position in the impact ranking. Its impact is only perceived as slightly lower than the one of a global economic crisis. 57% of survey respondents say that COVID-19 will make no change on the decarbonization of shipping.

3. Digitalization can improve resilience in supply chains

Meanwhile, leaders consider the industry unprepared for issues such as autonomy, cyber-attacks, big data and artificial intelligence.

We need updated digital technologies in order to improve transparency, traceability and resilience in supply chains. Those who already had that in place before the coronavirus pandemic, operated more smoothly in the course of it,

…states Richard Turner, President, IUMI.

Similarly to the decarbonization of shipping, the coronavirus pandemic may open new doors for digitalization. 35% of respondents say it has made the development of big data, AI, and autonomy technology more likely.

COVID-19 is likely to accelerate digitalization. The report’s industry experts agree that improving the use of new technology can lead to benefits such as increased efficiencies, improved risk management and enhanced environmental performance,

…concludes Richard Turner.

Explore more herebelow:

Global Maritime Issues Monitor 2020

October 2020