Restrictions on supply chains and international travel due to the Covid-19 outbreak have serious implications for the maritime industry, Allianz has warned in a new report.
Although the threat from the perils ships usually encounter at sea may have reduced in many cases due to an increasing number of vessels waiting at anchorage or being in lay-up, other risk challenges have replaced them, according to Safety of Maritime Assets – Tugged By A Pandemic from Allianz Global Corporate & Specialty (AGCS).
“The increasing disruption and economic pressures caused by the pandemic also has serious risk management implications for the maritime community and insurers alike,” commented Captain Rahul Khanna, global head of marine risk consulting at AGCS.
If lay-up of vessels is not properly managed, including regular maintenance, problems can materialise when the ship is ready to sail again, the report explains.
Relieving crew has become more challenging due to travel restrictions, meaning more fatigued seafarers—one of the main causes of human error on board. Delays in the servicing and inspections of vessels and emergency equipment can result in any problems remaining undetected, while supply chain disruption means oils and consumables can take longer to arrive, which can result in machinery damage if incorrect alternatives are used.
At the same time, an increase in the use of remote pilots—to protect seafarers from the risk of infection—can also have an impact on safe vessel navigation.
Although ships remain active through the Covid-19 outbreak, many vessels have been affected, leading to a number lying idle.
A vessel is considered to be on lay-up when it is taken out of service and is anchored at a fixed location for a considerable period of time without undertaking any commercial activities
In a so-called warm lay-up, vessels still have crew on board and can be ready to return to sailing relatively quickly. In a cold lay-up, a skeleton crew is retained for tasks such as maintenance, but most systems are shut down.
Reactivating the vessel can take time, requiring extensive testing to ensure it is safe, and can be expensive, costing up to millions of dollars in worst cases.
Khanna explained: “An unplanned lay-up can result in a prolonged recommissioning exercise that can last for months, even requiring docking. Comprehensive plans including risk assessments covering storage and lay-up are crucial for ensuring the safety of the vessel during the downtime and its subsequent return to service.”
Allianz is encouraging ship owners to use guidance documents and checklists provided by classification societies when preparing this plan.
The lay-up