A year marked by challenges

A year marked by challenges

Although the freight transport sector was not as affected by the pandemic as, for example, passenger transport, Polish shipowners had to deal with the impact of COVID-19 on the global markets. The pandemic completely disrupted most of the world’s economies, which also resulted in massive turbulence in the shipping sector. This was the case until August last year. In the following months, however, the market slowly got back on track. How did the domestic shipping companies cope with last year’s thoroughly exceptional situation?

According to Jacek Wiśniewski , CEO of Euroafrica Shipping Lines, the pandemic and its magnitude came as a surprise to all operators. It required rapid adaptation to the new environment and to the restrictions that were put in place. It was no different for ESL. The company focused on preventive measures, related to mitigating the risk of loss of life and health of its employees or the transported passengers. At the same time, it tried to maintain its market position in the variety of the individual shipping services. Crew swaps, the cost of counter-pandemic measures, carrying out deliveries and technical services proved to be a major challenge.

– Unfortunately, it was necessary to suspend or significantly slow down investment processes – the purchase or replacement of units and the expansion of the business by providing services. However, we plan to expand the West Africa Line with an additional service branch featuring cocoa shipments to North America. As part of our strategic plans, we are also conducting studies and preparatory activities, in cooperation with Gdynia Maritime Agency, in order to actively participate in the development of the offshore wind market in Poland, in particular as regards logistic support for the construction of offshore wind towers – explains J. Wiśniewski.

In turn, Radosław Chmieliński, shipping director at Chipolbrok Gdynia, noted that the company continued to provide its existing shipping services, by offering customers connections around the world, between the ports located in Europe, Asia and America. In addition to the traditional routes to the Asian ports (China, India), it has strengthened its position in both the roundtrip services between China and Southeast Asian ports, as well as on the route: ports of the Far East – North America.   Additionally, calls to Central America and South America became more frequent. Activity in spot charter markets also intensified, securing larger consignments of bulk commodities and steel.

Chipolbrook’s plans for the current year include maintaining its existing position as one of the global leaders in shipments of project cargo , heavy and oversize cargo, as well as attracting new customers, increasing revenue and consolidating existing shipping services.

Krzysztof Gogol, spokesman for the Polish Maritime Shipping Group[Polska Żegluga Morska], admits that the past year was also very difficult for the PŻM group. This was due to the outbreak of the pandemic and the subsequent significant deterioration in the economic situation worldwide. Within the group, the ferry sector was particularly affected, especially the passenger component, as international passenger transport was made impossible during the lockdown months.

– In the autumn months of last year, the positive aspect was particularly the situation on the American Great Lakes, where PŻM  is one of the world leaders when it comes to ocean tonnage. Despite the fact that we transported less steel to the lakes, the other cargo was sufficiently profitable, that even ships sailing to the lakes under ballast performed very well, says a spokesman for the PŻM group.

Despite strongly unfavourable circumstances, the economic situation of the PŻM group throughout 2020 was stable and liquidity was not threatened. The outlook for 2021 is also optimistic. The bulk carrier freight market should grow, due to stock recovery and post-pandemic reconstruction by the various economic sectors.

Shipping, as always is one of the topics of the Maritime Economy Forum Gdynia, the 20th jubilee edition of which will be held on 7-8 October 2021.

Article developed with Namiary na Morze i Handel magazine

phot. Namiary na Morze i Handel magazine