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The Vital Importance of Crew Personnel in Supply Chains

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The “seafarers” are a fundamental component in supply chains. They are often overlooked despite being the personnel that make up the crews of merchant ships, who play an essential role in ensuring the uninterrupted flow of goods and merchandise worldwide.

Today, we will delve into the critical importance of these essential workers, the tasks they perform, and why their recognition as such is fundamental.

But first:

Who are Seafarers?

The term “seafarers” refers to individuals who work aboard maritime vessels, including cargo ships, tankers, container ships, and more. These professionals perform a variety of roles and responsibilities vital to the efficient operation of the maritime industry and, therefore, to global trade.

Key Tasks of Seafarers

Merchant ship crews perform a wide range of tasks, ranging from navigation and vessel maintenance to cargo loading and unloading. Some of the most common responsibilities include:

 

  • Navigation and safe operation of the ship.
  • Maintenance and repair of the vessel and its equipment.
  • Supervision and execution of loading and unloading procedures.
  • Compliance with maritime regulations and safety protocols.
  • Collaboration with other parts of the supply chain to ensure timely delivery of goods.

 

Who are Essential Workers in Supply Chains

Even five years after the COVID-19 pandemic, the critical importance of essential workers in all industries has been highlighted, and seafarers are no exception. During times of crisis and disruption, these professionals continue to operate in challenging conditions to ensure that crucial supplies reach their final destination. Their dedication and sacrifice are crucial to keeping the global economy running and meeting the basic needs of the population.

 

Recognition and Protection of Crew Personnel

Currently, the International Maritime Organization (IMO) has been actively involved in the ninth meeting of the Intergovernmental Negotiating Body for a World Health Organization (WHO) instrument on pandemic prevention, preparedness, and response, which took place from March 18 to 28 at WHO headquarters in Geneva, Switzerland.

During this meeting, Mr. Jan de Boer, Senior Legal Officer of the IMO, highlighted the crucial importance of recognizing seafarers as essential workers, given their critical role in the supply chain at all times. This includes:

  • Protecting the welfare and safety of seafarers.
  • Providing access to adequate personal protective equipment.
  • Facilitating their movement across borders during emergencies and global crises.

Within the framework of these negotiations, WHO Member States are discussing the content of a draft text for the new instrument. It is expected that this draft WHO Agreement on Pandemics will be finalized during the course of these negotiations.

Merchant ship crew personnel play a vital role in the efficient management of global supply chains. Their work ensures the timely and safe delivery of essential goods and merchandise, even in the face of extraordinary challenges such as the COVID-19 pandemic. Recognizing and safeguarding these essential workers is crucial to preserving the stability and optimal functioning of the global economy.

 

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Challenges in Maritime Trade: Impact on the Global Economy and Contingency Plans

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Maritime trade, the engine of the global economy, is facing a series of challenges that could have significant repercussions both in the short and long term. The National Foreign Trade Association (Analdex) has presented a comprehensive report that deeply analyzes the factors hindering the maritime transportation of goods and their impact on the development of this activity. Among the most prominent factors are the conflict in the Red Sea and the weather-related issues affecting the Panama Canal.

Maritime Trade and the Impact of the Conflict in the Red Sea

One of the most notable challenges facing maritime trade is the conflict in the Red Sea, which has had a direct impact on the global transportation of goods. One of the most visible effects is the disruption in the transit and shipment of vessels through the Suez Canal, a crucial route for trade between Asia and Europe. This interruption has negatively affected the supply chain and raised concerns in the industry.

Analdex’s report indicates that this disruption in transit through the Suez Canal could continue for the coming weeks and may worsen if carriers opt for alternative routes with higher shipping demand. This has created uncertainty in maritime trade and led to extended transit times, which, in turn, could result in a shortage of containers.

Challenges in the Panama Canal

In addition to the conflict in the Red Sea, the Panama Canal also faces significant challenges. The rerouting of goods through alternative routes has been disrupted due to weather-related issues affecting this maritime route, especially related to the El Niño phenomenon and decreasing water levels. As a result, the Cape of Good Hope has become the primary alternative ocean route. However, this route adds an average of 14 days to transit times, depending on the origin and destination of the goods.

This situation has led to a reduced availability of containers and a lack of alternative routes, contributing to the rising freight prices. According to the Drewry World Container Index, freight prices have experienced a significant increase of 85% in recent weeks.

Impact on the Global Economy

The increase in freight prices has direct implications for the global economy. One of the main potential effects is the impact on inflation expectations. Analdex’s report states that goods inflation could become a concern if it intensifies due to rising prices in global transportation services.

Furthermore, if this situation becomes persistent, it could affect aggregate demand and reduce prospects for global economic recovery, especially considering the economic slowdown experienced in 2023. Increased transportation costs could lead to reduced demand for goods and services, potentially slowing economic growth.

Contingency Plans in the Maritime Trade Industry

Despite the mentioned challenges, the maritime trade industry is not standing idly by and has implemented contingency plans to address the situation. These plans include a combination of maritime and air solutions to mitigate issues affecting the transportation of goods.

Maritime solutions involve searching for alternative routes and optimizing transit times, as well as increasing the cargo capacity of vessels. Additionally, strategies to improve efficiency at ports and reduce waiting times are being explored.

Regarding air solutions, air transportation services are being used to meet the urgent demand for goods. This includes the transportation of perishable products and high-value goods on cargo planes. While these solutions may be more costly than maritime transportation, they are an effective response to the need for rapid delivery.

Maritime trade faces significant challenges due to the conflict in the Red Sea and issues in the Panama Canal. These challenges have a direct impact on freight prices and, ultimately, the global economy. However, the industry is responding with contingency plans aimed at maintaining the flow of goods transportation and mitigating negative effects. The situation remains dynamic, and it will be crucial to closely monitor how these factors evolve in the coming months and their impact on the global economy.

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