Port Closures
Ports were closed on account of quarantine periods on account of the various conditions imposed, such as the ban of marine vessels into certain countries to mitigate the spread of COVID-19. The entry of vessels to certain countries has been restricted or prohibited, causing chaos among the marine transport facilities globally.
Lower Cargo Demand
There was a decline in import and export of products and goods between nations on account of COVID-19 related restrictions. Goods previous transported via ships have to follow a set standard of protocol that has limited the demand for cargo. Delay in transportation due to added complications of quarantine periods led to further cargo decline.
Disputes
Owners & Charters: Charters hiring vessels from owners arise on account of time and money losses. Periodic hire of vessels are facing issues in the sense that the time period is negated due to force majeure.
Lay Time Settlement: Owners grant vessels to charters for limited periods of times, for fixed costs. Overriding of time periods leads to additional costs to be paid for surpassing the set time period. COVID-19 has imposed major difficulties on the settlement of time periods, such as that the vessels are prohibited from entering certain ports forcing them out on territorial waters for extended periods of time. This forces them to be a party to pay additional costs under light of dispute. Again, on account of force majeure, costs are not paid and this causes losses.
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