The cruise industry has already been hit exceptionally hard following the coronavirus outbreak. It is still difficult to say what the damage will be for the Dutch shipping industry as a whole, but ‘it will not be minor’, says the Royal Association of Netherlands Shipowners (KVNR).
At present, Dutch shipowners are mainly confronted with the inability to change crews and limiting the risks of contamination on board, reports the KVNR. The organisation has therefore called on the Dutch Government to lift travel restrictions on seafarers wherever possible and to temporarily postpone on-board inspections.
Seafarer trade union Nautilus International agrees that it is difficult to relieve crews because in many countries this is no longer possible. ‘As a result, seafarers have to stay on board longer and/or can only board later,’ says Marcel van Dam, Senior National Secretary at Nautilus International. ‘The more countries are locked up, the more difficult it becomes to relieve people in time. In view of the situation, it is being considered to make different arrangements with employers regarding the duration of deployment.’
Cruise sector hit hard
‘In some markets, the effects are easily noticeable,’ says Nathan Habers, responsible for PR at the Royal Association of Netherlands Shipowners (KVNR). ‘Think of the cruise sector, ferry services in Europe and ships that cannot sail because orders are cancelled or not renewed.’
Nautilus also says the impact is most clearly demonstrated in the cruise sector at the moment. ‘All of Holland America Line’s cruise ships that are currently still sailing, will finish their cruises and will subsequently be docked for at least thirty days. The crew will remain on board for now, but this can change,’ says Marcel van Dam, Senior National Secretary at Nautilus.
‘For office staff in the Netherlands, the company will make use of the government-supported measure of reduced working hours* because there are hardly any bookings. For the time being, this does not apply to seafarers,’ Van Dam adds. (*This government measure makes it possible to temporarily reduce employees’ working hours and supplement their wages by a government benefit.) ‘Sister company Princess (also a part of Carnival Cruises) will stop cruises for sixty days and civil service workers will disembark.’
For river cruises the same applies, adds Van Dam. ‘Viking has cancelled all its inland cruises. And ferry services are impacted due to a declining number of passengers, for example because of lockdowns in some countries.’
Freight rates under pressure
When it comes to freight transport, Van Dam says he has heard from members at Maersk that ‘cargo supply on the East-West line has decreased considerably lately. Hence there are fewer sailings and rates are under pressure. It is to be expected that this will also have an impact on short sea shipping and will put further pressure on freight rates.’ The reduced fuel prices could possibly offer some relief at the moment.
More support for shipping may be needed
‘It is too early to say exactly what the extent of the damage to the Dutch shipping industry will be, but it will not be minor,’ Habers points out. ‘Fortunately, there are already generic measures such as the postponement of fiscal payment obligations and aid financing has been set up for SMEs. Additional sector-specific measures may be needed in the near future, either for the collective or for individual shipping companies.’
He adds: ‘As said, we call on the government to take action in relation to relieving crews. In addition, we are in the process of setting up a global consultation between the International Maritime Organization (IMO), International Labour Organization (ILO) and World Health Organization (WHO) in the context of the International Chamber of Shipping (ICS). That consultation has yet to take place. So this week, it will have to become clear what additional measures can be taken to assist shipowners in the shipping industry.’
