Since last year, January, the COVID-19 pandemic has resulted in widespread impacts on almost all sectors of the world economy, including supply chains and world trade.
The unprecedented impact of the pandemic and resultant restriction regulations that many countries have imposed revealed an acute bottleneck when it comes to supply chain links in different trade regions.
With these restrictions, many seaports reopened, and only several of them have decided to cancel or shelve existing investment plans.
The remaining ports have decided to execute and accelerate investments faster as opposed to what was initially scheduled. Evidently, businesses depending on seaports are devoted to advancing their sustainability even in crisis conditions.
Effects Of COVID-19 On Ocean Sustainability & Security
Even in good times, oceans remain an untamed and poorly-policed frontier. Covid-19 exacerbates the gap of offshore law enforcement, as coast navies and guards look inward in order to handle a domestic crisis.
Poachers, smugglers, and pirates will continue operating. They might even have a greater incentive that resorts to crimes, faced with several opportunities in the global recession.
Illegal fishing is also likely to increase. As the law enforcement in the sea declines, it is worthwhile to watch data from satellites and vessel AIS (automatic identification systems) to determine if illicit fishing signals will tick up.
No cruise ship is docking at the Mombasa port, and some businesses are continuing uninterrupted with cargo ships delivering products across the world.
Businesses at this East Africa port are buoyed further by the increased demand for jet fuel and flights resumption after several months’ suspension because of the global pandemic.
Targets For Trading In The World Of Post COVID-19
The lockdown measures of COVID-19 hit different aspects of trading. In fact, merchandise trade volumes decreased by around 4% last year compared to 2019. Some trading services have been hampered by physical, transport, and travel contact restrictions.
However, several pockets of demand have surged, including cloud services, video conferencing, and medical equipment. Foreign direct investments also went down drastically, but they’re protected from rebounding in 2022.
Both businesses and governments need to shape effective trade responses and look to the future while targeting the following:
- Industrial policy and subsidies
- Green trade
- Services regulation
- Real resilience
- COVID-19 Responses
At the peak of this global crisis, the container shipping sector adopted some measures so as to reduce costs and cut capacity while maintaining profitability rather than market share.
Because of this, freight rates remained at a stable level regardless of depressed demand. From shippers’ point of view, these strategies mean delays in delivery and severe space limitation to transport products.
In order to cope with the disruptions related to the global pandemic, maritime players adjusted their finances, safety protocols, working procedures, operations, and sanitary.
Plus, through customs administrations, port authorities, and border agencies, several governments made reforms so as to keep on doing business while maintaining people’s safety.
The economic turmoil that the global pandemic has caused has exposed different vulnerabilities when it comes to supply chains.
Business managers everywhere like Shazmeer Jiwan need to take the necessary steps to be familiar with their vulnerabilities and have a fresh look at the supply networks.