Coronavirus and the shipping industry

The continued spread of Coronavirus and governmental measures to minimise the impact is likely to affect the shipping industry and supply chain.

For those with vessels being built or under repair, it might lead to delays in deliveries or a reduction in available manpower. It might also hamper specialist engineers travelling to ship yards.

It is important to consider force majeure clauses and whether those provisions exist consistently throughout a series of charters or contracts.

Owners with vessels currently trading in regions affected should carefully consider any safe port and quarantine provisions, without forgetting the relevance of crew employment agreements.

It is difficult to determine the size or impact of the “Public Health Emergency”, however it is worth considering what exposure exists and seeking to enter commercial discussions with your counterparts at an early stage to help prevent disputes occurring later.
Source: Watson, Farley & Williams