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Under the epidemic, this year, shipping companies to increase the seven costs

Mr Delury said in a recent survey that shipping companies had seen their costs rise significantly this year because of the COVID-19 outbreak.

 

 

Rhett Harris, who collaborated with Delury on the survey, described the seven new costs incurred by shipping companies due to the outbreak.

 

Specifically, they include:

 

1. The extra cost of a long journey incurred to shift the crew;

2. Post reserve payment for the crew trapped at home and always ready to embark;

3. The cost of the charter flight to complete the crew shift;

4. Hotel isolation costs related to quarantine requirements;

5. Novel Coronavirus test fee;

6. Costs incurred during coVID-19 to increase the bandwidth of the ship's network so that crew members can communicate with their loved ones;

7. Increase the cost of crew's personal protective equipment.

 

"As you can see, most of these costs are due to isolation, testing and extended travel," he explained.The cost of these costs depends on the crew's employment contract, but the shipping company also has certain discretion."

 

It is understood that after the end of the contract period, some crew members are stuck on the ship, while others are stuck at home, unable to implement the new contract and thus losing their income.Some companies are paying the crew to keep their jobs.

 

In addition, the cost of crew shift travel has increased significantly.Because of the lack of commercial flights, tickets are hot, and if they are chartered, the cost is even higher.

 

At the same time, the company will also provide room and board for seafarers awaiting repatriation and pay for novel Coronavirus test.

 

"There have been reports that the cost of a test in excess of $200 in the early days of the outbreak has come down, but it is still a significant expense," Harris said.

 

As part of the welfare of the stranded crew, some shipping companies have also increased Internet bandwidth to make it easier for crew members to communicate with their families.All of this is expensive.