According to Bloomberg News, Omicron is playing havoc with cargo ships, raising concerns that if the pace of infections continues at this rate, together with tightened Covid-19 rules related to quarantine on these vessels, it could jeopardize the supply chain industry and the shipping sector to be specific.
Although managers of the ships have said that the problems they are facing have been manageable so far, a consistent surge only adds to the pressure in the supply chain industry, one that is already under strain beforehand.
The sight of long lines of cargo ships from the ports of Shenzhen to Los Angeles and Rotterdam is not uncommon these days. Also adding to the woes is the shortfall of workers and drivers that are further complicating matters.
Due to strict rules related to Covid-19 imposed by China, as it is trying to eradicate Covid-19 compared to the other nations that are trying to get used to it, it increases the glitches.
Bloomberg News reports that most of the cases among the crew are mild, and most of them are vaccinated, omicron is spreading rapidly through the ships. Having an infected crew onboard requires the vessel to be in quarantine for 14 days. However, the number of days the affected crew must remain in quarantine usually differs from one ship manager to another, port to port, and one country to another.
China Challenges
If a single seafarer tests positive, it is challenging for the entire ship as it has to be quarantined entirely as per the authorities’ requirements. Another requirement that China has imposed is that those vessels halting in China must have been free of Covid for at least three weeks. To add, changing crew in China is next to impossible, at least for the overseas seafarer.
The tightened rules of Covid-19 quarantine by China for the vessels and reduced workforce only add to the delays. Compared to pre-pandemic times, it takes a week to 10 days for iron ore to get delivered supplies.
Data obtained from project44 shows that the average delays in shipment to US West Coast from China increased by 114% in 2021 compared to what it was one year earlier. On the other hand, delays on European routes escalated and recorded a 172% surge.
However, there is one bright spot, vaccinations for seafarers are on the rise, helping keep the symptoms milder.
China’s efforts to make the country Covid-19 free are increasing, causing problems in various areas and not just in the supply chain as other countries are trying to live with the virus. Bloomberg News reports that India, parts of Europe, and the Philippines that form part of the seafaring nations are undergoing big hits due to rising infections, as per the report from the Neptune Declaration coalition of the charterers and ship-owners.
