When Covid was at its highest in 2020, up to 400,000 seafarers were stranded on their ships, unable to return home. Repercussions of this crew crisis may be long term, also for safety onboard vessels, forecasts new report.
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The global shipping industry is going through a market boom, and demand for crew is high. Nonetheless, many seafarers are leaving the industry, and within a few years, the lack of well-trained crew may become a serious problem.
Such is the assessment by insurance company Allianz Global Corporate & Specialty (AGCS) in its annual report on safety and shipping.
When the pandemic reached its peak in 2020, up to 400,000 seafarers were forced to stay onboard their ships, thus unable to return home. The following year, the number had declined to 200,000. Although this part of the crew crisis has pretty much come to an end, it is likely to have long-term consequences, predicts AGCS.
”The health and wellbeing of crew has always been a critical factor in safety. However, morale among seafarers is currently low and the pandemic has had an impact on the mental health and well-being of crew,” states Global Head of Marine Risk Consulting at AGCS Rahul Khanna in the report.
The pandemic has had an impact on the mental health and well-being of crew
Captain RAHUL KHANNA, AGCS
”Now crews face a rising workload, while the ever-growing burden of compliance is making the job less attractive,” he adds.
The pandemic made many seafarers reconsider the balance between their work and private life – and a significant amount left the industry in what has been termed ”the great resignation”. The combination of the pandemic and increased work pressure may lead to serious lack of qualified labour in the future, writes AGCS.
Focus on safety
The intensified work pressure may also prompt increased safety issues onboard ships, since 75% of all accidents and other incidents are caused by human error, according to the report.
For AGCS, the well-being of ship crew and the carriers’ ability to maintain the work force are risk factors in relation to insurance. It is thus important for the company that carriers actively pursue retaining their personnel.
“Particularly with more modern vessels and technology, the ability to attract and retain experienced crew is critical,” says AGCS Global Product Leader Marine Hull Justus Heinrich in the report.
Other aspects of the shipping boom may also have consequences for onboard safety. High freight rates and lack of capacity in the container fleet have ”tempted some operators to use bulk and product carriers to transport containers,” writes AGCS.
According to the insurance company, this contains a risk because vessels of this type are not meant to carry containers and because their crew may not have the necessary experience.
As such, uncertainty regarding safety increases, for instance in relation to fire. Maneuverability on a vessel not meant for container freight may be affected as well.
Furthermore, the report points out that the ship fleet is getting older. And although many ships are well- maintained, AGCS states that more insurance claims are filed when freight vessels are 15-25 years old – among other factors due to corrosion and because there is a bigger risk of engine failure and other technical problems.
