2020: an atypical, challenging and learning-intensive year
2020 will be remembered for the Covid-19 pandemic, and all the economic, political and social implications it brought to humanity. The world faced great challenges and challenges to ensure that coronavirus did not become a tragedy, which demonstrated the ability of people to innovate and unite to face challenges. The insurance and maritime sectors were not unaware of these challenges and had to reinvent themselves to stay afloat, which is why ALSUM has compiled the news that marked this year that ends.
Wuhan coronavirus is already an international health emergency, according to WHO. The World Health Organization (WHO) has declared that the spread of Wuhan coronavirus is a public health emergency of international importance (ESPII).’ Although the figures outside China are still relatively small, they have the potential for a much larger outbreak’, warned Ghebreyesus, who said that we are facing ‘an unprecedented outbreak, but also an unprecedented response’. The outbreak now affects more than 7,500 people and has claimed 170 lives, bringing its mortality rate to around 3 per cent. So far there are no deaths outside China and only 20% of cases are considered serious, recalls the agency itself.
What happens the day after Brexit. The often-postponed official departure from the UK from the EU finally arrives on Saturday. After 47 years of permanence, Brexit will take effect on February 1. But on that day few changes will be seen. As El País recounts, now begins a transitional period where little by little will pave the way for the real rupture, set for January 1, 2021. Among the most immediate measures, the abandonment of the seats of the 73 British MEPs who will have to leave their offices before 7 February.
IUMI on coronavirus and container fires (Insurance Business UK), During the annual winter conference held by the International Maritime Insurance Union (IUMI), Philip Graham chairman of the Facts and Figures committee, IUMI and Chaucer, highlighted how at the beginning of the year the general market began to look quite positive for shipping, but ‘Then the coronavirus hit’, said Graham, ‘and has undoubtedly had a negative impact on the world economy and on the demand side of the shipping community’. For his part, Helle Hammer, president of the political forum, IUMI and CEFOR (Nordic Association of Maritime Insurers) stated that another issue of higher priority to discuss is that of fires on container ships.
Scientists believe that to mitigate COVID-19 will not be achieved with restrictions or prohibitions on mobility, but actions such as hand washing (El Tiempo), A study published by the journal Science highlights that the greatest benefit to mitigate the COVID epidemic-19 will not come from restrictions or prohibitions on mobility, but from ‘public health interventions and behavioural changes’ of the population. The study was published and conducted by researchers at Northeastern University in Boston (USA) in collaboration with other research centers, including the University of Shanghai.
COVID-19: The Impact on the Cargo Industry (MARSH), In the medium term as countries seek to implement contingency plans to prevent the spread of COVID-19 through the implementation of quarantines and travel restrictions, the production of goods, the transit of the same ones can be delayed due to the redirection and even unloading near their final destination result of the closure of ports or the restrictions of the countries.
Latin America combats the pandemic with quarantine and curfew (El Comercio), Chile was the last of several countries in Latin America to decree a night curfew to face the coronavirus pandemic, joining Ecuador, Bolivia and Peru, while a new riot in the region, in Colombia, left 23 dead.
Shipping lines of containers prepare for losses of more than US$23 billion (Mas Container), The shipping lines of containers present a bleak panorama due to the disruption of supply chains caused by the COVID-19, with more than 212 trips canceled to date the loss projections for the whole 2020 are abysmal.
Alternative transport – Covid-19, driving CNG? (World Energy Trade) , Hydrogen energy and fuel cell applications are receiving more attention from the U.S. Department of Energy. (DOE) and a recent report by McKinsey and Co., points out that billions of dollars and hundreds of thousands of jobs could create the hydrogen sector by 2030, while providing a low-carbon energy option.
Chubb classifies Covid-19 as a catastrophe event (Artemis), Chubb is classifying the Covid-19 pandemic as a catastrophe loss event and projects it will have a significant impact on profits in the second quarter
Theft of cars and trucks transporting food goes up in the quarantine (El Universal Mexico), According to the El Universal media during the confinement that Mexico is living there has been an increase of 10% in the theft of cars and 25% in transport units of basic input, above all, food.
The Covid-19 will cause losses of US $ 203,000 million to the insurance sector (El Espectador), The insurers would assume 96,000 million in value losses on investments in the sector.
Trump attacks Huawei and China threatens Apple, growing trade tension (Forbes), According to the media, USA. would be convincing its allies to exclude Huawei’s equipment from its 5G generation. China responds by threatening to investigate Apple giants.
World trade, in ‘red numbers’: WTO barometer (t21.com.mx), The real-time trend on world merchandise trade suggests a sharp fall for the first half of this year, as a result of the disturbance in the economy caused by the COVID-19 (coronavirus), according to a World Trade Organization (WTO) barometer.
The ship Ro/Ro Hoegh Xiamen continues to burn (Maritime Executive), Forces have joined to extinguish the sea fire aboard the ship Ro/Ro Hoegh Xiamen, which continues to burn at a terminal in Jacksonville, Florida. According to a press conference on Friday, June 5, USCG Sector Jacksonville Commander, Captain Mark Vlaun, said the fire is contained in deck six and above.
Trump threatened to sever ties with China and destroy relations between the two countries (More Container), Since the pandemic in China began to seriously affect the power of the United States, the relationship between the two countries has reached its lowest point in many years, and President Donald Trump and his administration continue to blame the Asian giant.
The main global shipping lines chose to reduce the capacity of their fleet, except HMM (Maritime World), According to the medium, the South Korean shipping company kept 20% of its fleet inactive as of June 23. Eleven of the world’s twelve largest shipping companies decided to reduce the total capacity of the fleet in the first half of this year.
Maersk introduces penalties for misstated oversized loads (Project Cargo Journal), Maersk is introducing a new penalty fee for misstatement of oversized loads. The container carrier says he is experiencing too many incidents with shipments causing problems due to erroneously declared dimensions. The surcharge is created to cover the additional administrative work of the carrier.
Latin America will close 2.7 million businesses and lose 8.5 million jobs in the next six months (Publimetro Mexico), The Covid-19 pandemic will leave a serious toll on the Latin American economy, with more than 2.7 million businesses closed and the loss of 8,5 million jobs in the next six months, which will mainly affect micro and small businesses.
Colombia: What is the ‘Marshall’ Recovery Plan planned by the Duke Government (Week), To face the economic crisis derived from the pandemic, Colombia will seek to emulate the ambitious economic recovery scheme that the United States applied in Western Europe after the war. The great challenge will be to secure resources and prior consultation
Munich Re reveals second-quarter reinsurance losses of €700m due to Covid-19 (ARTEMIS), Global Reinsurance Player Munich Re has revealed that it has suffered losses of €700 million in its reinsurance business due to the Covid-coronavirus pandemic19 in the second quarter of 2020. Despite the high burden of losses, the company still expects to report a net result of over 600 million euros.
Lloyd’s creates the 1976 syndicate to secure the transport of the Covid-19 vaccine (Reinsurance News), Insurance and Reinsurance Market Specialist Lloyd’s of London has announced the creation and main approval of Syndicate 1796, designed to ensure storage and transport for emerging economies, of a developed COVID-19 vaccine.
DP World recorded a 3.9% drop in container volume during the first half of 2020 (Maritime World), DP World Limited handled 33.9 million TEUs across its worldwide container terminal portfolio during the first half of 2020, with gross volume of containers that decreased by 5.3% y-o-y on the basis of the reported data and by 3.9% on a similar basis.
What happened in Beirut? The insurance sector is again impacted by a casualty related to dangerous goods stored in a port and that due to their inadequate handling caused a tragedy; as happened in 2015 in the port of Tianjin. On August 5 in Beirut, the capital of Lebanon, an unfortunate event occurred and due to its implications for insurance, the ALSUM blog has compiled the series of events that caused two explosions causing the death of more than 200 people, as well as the destruction and damage to the city’s infrastructure.
Mauritius suffers its worst ecological disaster from a 1,000-tonne spill of fuel (Forbes Mexico), Two tankers and several helicopters have been deployed to stop the spill of fuel from a stranded ship off the coast of the island of Mauritius, reported the Japanese company Nagashiki Shipping, owner of the Panamanian flag vessel MV Wakashio.
Moody’s: Covid-19 slows globalization and accelerates the restructuring of the supply chain (Maritime World), The coronavirus pandemic is likely to accelerate fundamental changes in global trade relations and in Asia. Ensuring the security of supplies by increasing the robustness of supply chains will become a primary goal of governments and businesses, surpassing considerations of cost and efficiency, says a report by Moody s.
The world’s main maritime traffic continues to show signs of concern (Trade News), According to information from the specialized consultancy Drewry, the combination of trends is the most unfavorable for shippers and forwarders: while freight rates continue to rise, the quality of services worsens as traffic cancellations persist.
Brazil’s GDP plunged 9.7% in the second quarter due to the coronavirus, the worst fall in its history (Economy Today), Brazil’s Gross Domestic Product (GDP) fell 9.7% in the second quarter of the year compared to the previous quarter, which is the most pronounced drop in the indicator since the beginning of the series in 1996, according to data from the Brazilian Institute of Geography and Statistics (IBGE).
2020 a critical year for reinsurers: AM Best (Reinsurance News), It is said that the current conditions of price tightening are creating a window of opportunity for reinsurers, with some lines showing much needed improvement in terms of prices and coverage. However, there is a risk that this positive momentum will be short-lived, and the excess capacity will start to expand again, returning the market to where it started.
Global Risk Report: 9 out of 10 companies project a decrease in revenue in 2020 (Money), Even before this crisis due to the Covid-19 pandemic, companies were already facing a panorama of very complex interconnected global risks, as outlined in the Global Risk Report 2020 published by the World Economic Forum with the support of Marsh & McLennan.
The fire was rekindled on the ship ‘New Diamond’ off Sri Lanka (The Maritime Executive), The high internal temperatures on board the tanker combined with the strong winds, which were also causing adverse sea conditions, are responsible for the new fire on the Panamanian flagship.
Overall maritime insurance results indicate modest recovery, but COVID-19 adds uncertainty for the future: reports IUMI., The International Union of Marine Insurance (IUMI), presented its analysis of the latest trends in the maritime insurance market during its annual conference this year held online. Maritime subscription premiums for 2019 were estimated at USD 28.7 billion, representing a reduction of 0.9% compared to 2018.
How Latin America became the region most affected by the coronavirus and why it is far from controlling the disease (El Comercio) After seven months with coronavirus, Latin America is the region most affected by the pandemic, with 33.8% of the million deaths that were already exceeded last night and 27.7% of the 33.27 million global cases, and the area is still more concentrated in containing than in surpassing the COVID-19.
Cepal analyzes effects of COVID-19 on maritime trade; 3-year decline (T21 Mexico), In Latin America, from January to July 2020, global import and export container volumes were reduced by 5.4% to 78.0 million TEUs (20-foot containers). Intercontinental trade contracted by 8.2% to 50.4 million TEUs. Intraregional volumes were reduced by 4.1% to 27.6 million TEUs.
International Maritime Organization is the second entity after CMA CGM to be attacked by hackers (Maritime World), The International Maritime Organization (IMO), a United Nations body that regulates global shipping, said its London headquarters has been hit by a cyberattack that knocked down its website and its internal web-based services. The fact follows a malware attack that hit CMA CGM a week earlier, paralyzing the network of reservations and electronic communications of the shipping company.
A woman will oversee world trade for the first time (CNN), For the first time in its 25-year history, the World Trade Organization will be led by a woman. The field of candidates competing to become the next WTO Director-General by the end of this year has been narrowed down to two women: Ngozi Okonjo-Iweala of Nigeria and Yoo Myung-hee of South Korea, the Geneva-based agency said in a statement.
Container Shipping and Covid-19: It hasn’t been so bad after all (Maritime World), Drewry’s latest report on Container Forecast, published at the end of September, revealed that the performance of the container ports of the world confused the expectations in according to trimester of 2020 (and very probably in the third also) in order to record a much smaller decrease than the previewed one of approximately less 8% interannual (compared to the expected 16% drop published in June).
The IMF estimates 30 million unemployed in the Latin American and Caribbean region (Vanguardia), Unemployment is one of the problems that has increased most with the pandemic; in the case of Latin America and the Caribbean, the International Monetary Fund (IMF) has a contraction of 20% in the average number of jobs in the largest countries and up to 40% in countries such as Peru.
Euphoria in the markets for the vaccine against the Covid-19 and the triumph of Biden: bags flew up to 8.6% (Scope), Risk assets strengthened at this beginning of the week. Shares on Wall Street grew to 3% and oil prices rose 8%. On the contrary, gold and yen weakened, and US bond returns soared.
The shortage of containers agitates world trade (MasContainer), The shortage of containers is increasing the purchase price of new containers and rental fees by 50%, which slows down the port traffic, adds surcharges and slows deliveries for the holidays reported Bloomberg.
Coronavirus vaccines: the strengths and weaknesses of the nine most advanced candidates (BBC), More than 10 potential coronavirus vaccines are already in Phase III of their clinical trials, the final stage before approval by the regulatory agencies. The scientific community received with great enthusiasm the good news about the coronavirus vaccine developed by pharmaceutical companies Pfizer and BioNTech: a 95% effectiveness, no worrying side effects and good protection for people over 65 and of different races and ethnicities.
LATAM, certified airline to transport vaccines, explains the logistical challenges (El Espectador), La aerolínea Latam, the first company in the continent to obtain an international certification for the transport of medicines and vaccines, explains how it will be effectively transported and distributed in the region to face the Covid-19.
The first British to receive the vaccine against covid-19, a historic moment in the pandemic (CNN in Spanish), To the first person in Britain to receive the vaccine from Pfizer and BioNTech, Margaret Keenan, 90, He was given the first of two doses at Coventry University Hospital, less than a week after the country became the first to approve it.
Colombia: Insurance companies have reimbursed $218,184 million to a total of 2.68 million customers (La República), The pandemic and the measures taken to reduce the spread of the virus had an impact on the risk of certain branches, therefore since the middle of the year, insurance companies have been implementing refunds as compensation for this lower risk.
Vaccination plans against Covid-19 in Latin America, The race to acquire, distribute and apply the vaccine against Covid-19 has begun, and several developed countries have already granted emergency authorization to start vaccination. In Latin America this process could take a little longer due to economic, logistical and social difficulties; although most states in the region are part of the COVAX mechanism, which will allow an efficient and equitable supply of vaccines, and countries like Chile have already made advance purchases.
China takes the throne of world trade (El País), The newly launched Asia-Pacific alliance confirms the region’s strength in the world economy and reinforces Beijing’s role as a champion of multilateralism. The cover letter is self-evident: 15 countries in the world, with China among them, which together account for 30% of world GDP.
The damage to the cargo on board ONE Apus can exceed 200 million dollars (The Maritime Executive),The unprecedented collapse of containers on board the box ship ONE Apus could end up costing $ 200 million in cargo damage, according to an estimate from a claims consultant.
New strain of coronavirus: 9 questions to understand what is happening (BBC), Millions of people must assume new restrictions in the UK due to the new variant of virus causing the covid-19 pandemic that is rapidly spreading across the country. British government advisors on new infections consider, with a ‘moderate’ confidence level, that the new strain is more contagious than other variants However, All research on the new variant is at an early stage and great uncertainties and a long list of unanswered questions remain.
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