Coronavirus strands merchant ship crews at sea for months

About 150,000 merchant seafarers are in need of a crew change, according to the International Chamber of Shipping. (AP)
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Updated 05 June 2020
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Coronavirus strands merchant ship crews at sea for months

  • Virus takes toll on merchant navies, who carry over 80 percent of global trade

ATHENS: For nearly four months, Capt. Andrei Kogankov and his oil tanker crew haven’t set foot on dry land. With global travel at a virtual standstill due to the coronavirus pandemic, the Russian captain was forced to extend his normal contract. He still doesn’t know when he’ll be able to go home.

Countries across the world have imposed lockdowns, shut borders and suspended international flights to curb the spread of the new coronavirus. The move was deemed essential to prevent rampaging contagion, but merchant ship crews have become unintended collateral damage.

About 150,000 seafarers are stranded at sea in need of crew changes, according to the International Chamber of Shipping. Roughly another 150,000 are stuck on shore, waiting to get back to work.

“In some ways, they’ve been the forgotten army of people,” said Guy Platten, secretary general of the ICS. “It’s not a tenable position to keep on indefinitely. You can’t just keep extending people,” said Platten.

With more than 80 percent of global trade by volume transported by sea, the world’s more than 2 million merchant seafarers play a vital role.

“They’re out of sight and out of mind, and yet they’re absolutely essential for moving the fuel, the food, the medical supplies and all the other vital goods to feed world trade,” Platten said.

International shipping organizations, trade unions and shipping companies are urging countries to recognize merchant crews as essential workers and allow them to travel and carry out crew changes.

“Our challenge now is to get a very strong message to governments. You can’t expect people to move (personal protective equipment), drugs and all the issues that we need to respond to COVID, and keep cities and countries that are in lockdown fed, if you don’t move cargo on ships,” said Steve Cotton, General Secretary of the International Transport Workers’ Federation, or ITF. “They’ve got to recognize the sacrifice seafarers are making for our global society.”

Kogankov is seven months into a four-month contract and was supposed to be replaced in mid-March in Qatar. But a few days before he arrived, Qatar imposed a lockdown and banned international flights.

From there to South Korea, Japan, South Korea again and on to Singapore and Thailand, each time the same story: Lockdown. No flights. No going home.

The uncertainty and open-ended extension of his contract — and with it the responsibility for his 21-man crew and a ship carrying flammable cargo — is taking its toll.

“When you are seven months on board, you are becoming physically and mentally exhausted,” Kogankov said by satellite phone from Thailand. “We are working 24/7. We don’t have, let’s say, Friday night or Saturday night or weekends. No, the vessel is running all the time.”

Officers sign on for three to four months, the rest of the crew for around seven months. But they always have an end date. Take that away, and suddenly the prospect of endless workdays becomes a strain.

“We’re gravely worried that there could be a higher increase of incidents and accidents. But we also are seeing a high level of what I would describe as anxiety and frustration,” Cotton said. “If you don’t know when you’re going to get off a ship, that adds to a high level of anxiety that really is quite demoralizing.”

Unless governments facilitate crew changes, Cotton warned, “it’s difficult for us to convince the seafarers not to take more dramatic action, and ... stop working.”

It’s not just crew changes that are problematic during the pandemic. Getting medical help for seafarers has also become difficult, as Capt. Stephan Berger discovered when one of his crew fell ill — not with coronavirus.

Lockdowns in successive ports made visiting a doctor impossible. It took multiple phone calls and the combined efforts of a Dubai paramedic, Berger and the German ship-owning company to eventually get the necessary care for the crewmember, who was hospitalized for three weeks.

Of the 23 people aboard Berger’s Berlin Express, 18 were due for a crew change when it moored in Valencia, Spain, in late May. The officers had extended what were normally three-month contracts to four and five months, while the mostly Filipino crew had been on board for eight or nine months, instead of three or four.

Despite this, morale has been good, Berger said.

Nobody is particularly happy with the contract extensions, “but we have to take it as it is,” he said. “It feels sometimes like a prison.”

Ship-owning company Hapag-Lloyd was doing everything it could to arrange crew changes and managed to arrange for the seven European crew members to sign off in Barcelona on May 30, Berger said. But there are still no flights home for the Filipino crew.

“We are very much hidden. We are on board our vessels, and the people might see the big ships coming in and out of the ports, but very seldom they see the people who are operating the ships,” Berger said. “We hope that people would recognize it a little bit more now.”

On another Hapag-Lloyd container ship, apprentice Hannah Gerlach was to sign off in mid-March in Singapore. But even as her vessel headed to Asia, it was clear that wouldn’t happen. Gerlach packed her bags for an earlier departure from Sri Lanka, but by the time she arrived, so had the lockdown.

“I definitely miss my family very much ... And I miss just these moments of a normal life, to have the possibility to go out for a walk, to the forest, to ride the bicycle,” Gerlach said. “You don’t know any more when your contract will end, when you have the chance to see your family again.”

David Hammond, founder of the Human Rights at Sea organization, said many seafarers “have really been at the end of their tether” due to contract extensions. “The reality is that until there is global cooperation among states and shipping entities ... then crew change is going to be very problematic.”


Oil Updates – prices climb amid US stocks decline, Middle East conflict

Updated 6 sec ago
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Oil Updates – prices climb amid US stocks decline, Middle East conflict

TOKYO: Oil prices extended gains on Wednesday after industry data showed a surprise drop in US crude stocks last week, a positive sign for demand, though markets were also keeping a close eye on hostilities in the Middle East, according to Reuters

Brent crude futures rose 26 cents, or 0.29 percent, to $88.68 a barrel and US West Texas Intermediate crude futures climbed 26 cents, or 0.31 percent, to $83.62 a barrel at 9:34 a.m. Saudi time.

US crude inventories fell 3.237 million barrels in the week ended April 19, according to market sources citing American Petroleum Institute figures. In contrast, six analysts polled by Reuters had expected a rise of 800,000 barrels.

Traders will be watching for the official US data on oil and product stockpiles due at 5:30 p.m. Saudi time for confirmation of the big drawdown.

US business activity cooled in April to a four-month low, with S&P Global saying on Tuesday that its flash Composite PMI Output Index, which tracks the manufacturing and services sectors, fell to 50.9 this month from 52.1 in March.

“This could help convince policy makers that rate cuts are required to support the economy,” ANZ analysts said in a note.

US interest rate cuts could bolster economic growth and, in turn, demand for oil from the world’s top consumer of the fuel.

Analysts were still bullish that any latest developments in conflicts in the Middle East will still support markets, though the impact on oil supplies remains limited for now.

“Overall, crude oil prices are well supported around current levels by on-going Middle East risk premium. On the topside, risk of possible renewed OPEC production increase from Jun will help limit any significant upside,” said head of markets strategy for United Overseas Bank in Singapore Heng Koon How.

“We maintain our forecast for Brent to consolidate at USD 90/bbl by end of this year,” Heng added.

Israeli strikes intensified across Gaza on Tuesday, in some of the heaviest shelling in weeks.

“Recent reports suggest that both Iran and Israel consider the current operations concluded against one another, with no follow-up action required for now,” ING analysts said in a note.

“The US and Europe are preparing for new sanctions against Iran – although these may not have a material impact on oil supply in the immediate term,” they added.
 


Pakistan Stock Exchange hits record high, breaks 72,000 points in intraday trade

Updated 24 April 2024
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Pakistan Stock Exchange hits record high, breaks 72,000 points in intraday trade

  • Analysts say investors expect a significant decline in April inflation data that may lead to a cut in interest rates
  • The Pakistani bourse has recently been trading at record highs due to hopes of positive loan talks with the IMF

ISLAMABAD: Pakistan’s benchmark share index breached the key level of 72,000 to trade at a record high of 72,414 points during intraday trade earlier on Wednesday, according to data from the Pakistan Stock Exchange website.

The Pakistani bourse has recently been trading at record highs amid positive sentiment prevailing among investors due to hopes of the country’s successful talks with the International Monetary Fund (IMF) for a new loan program.

The country’s finance minister, Muhammad Aurangzeb, recently visited Washington to hold talks with IMF officials for a long-term bailout facility as Pakistan’s current $3 billion program is due to expire this month.

The finance minister expressed hopes the outline of the new program would soon become visible, adding that the loan would help Pakistan continue with structural economic reforms.

“After a record current account surplus, investors are now expecting a big fall in April inflation data that may result in a cut in interest rates in the coming months,” Sohail Mohammed, CEO of Karachi-based brokerage company Topline Securities, told Reuters.

Pakistan’s benchmark KSE100 index has surged 75.5 percent over the past year and is up 11.5 percent year-to-date.

The equity market is expected to surge further as an IMF delegation arrives in Pakistan next month to determine the contours of the new loan facility.

“We are still hoping that we can get into a staff-level agreement [with the IMF] by the time June is done or early July so that we can move on,” the finance minister said on Tuesday while addressing a news conference in Islamabad.

With input from Reuters


Saudi Arabia’s non-oil exports surge by 4.4% in February: GASTAT 

Updated 24 April 2024
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Saudi Arabia’s non-oil exports surge by 4.4% in February: GASTAT 

RIYADH: Saudi Arabia’s non-oil exports, including re-exports, saw a surge of 4.4 percent in February compared to the same period the previous year, official data showed. 

According to the General Authority for Statistics, the total value of non-oil exports in February reached SR21.86 billion ($5.83 billion), marking a rise from SR20.93 billion in the corresponding period of the preceding year. 

The increase in non-oil shipments was driven by an 8.3 percent surge in the exports of rubber and plastic products in February, constituting 24.1 percent of the total exports.  

Strengthening the non-oil private sector remains pivotal for Saudi Arabia, as the Kingdom continues its economic diversification efforts aimed at reducing reliance on oil. 

The report unveiled a 4.1 percent year-on-year decrease in the Kingdom’s non-oil exports, excluding re-exports, in February. Conversely, the value of re-exported goods surged by 32.3 percent during the same period. 

However, GASTAT noted that Saudi Arabia’s overall merchandise shipments decreased by 2 percent in February compared to the year-ago period.  

This decline was primarily attributed to a 3.8 percent decrease in oil exports in February compared to the same month in 2023, according to the report.


UBS gets green light to open Saudi branch for banking operations

Updated 23 April 2024
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UBS gets green light to open Saudi branch for banking operations

RIYADH: In a move aimed at enhancing Saudi Arabia’s financial landscape, the Kingdom has granted permission for a branch of the Swiss bank UBS to operate within the nation. 

According to the Saudi Press Agency, the approval was granted during a session chaired by the Custodian of the Two Holy Mosques, King Salman bin Abdulaziz Al-Saud, held by the Cabinet in Jeddah on April 23.

The session commenced with King Salman briefing the Cabinet on the recent communications and discussions held between the Kingdom and several countries regarding shared relations, regional issues, and global developments, as reported by SPA.

In this context, the Cabinet reaffirmed Saudi Arabia’s steadfast stance toward promoting security and stability in the region and the world. 

The Minister of Media, Salman bin Yousef Al-Dossary, stated in a press release following the session that the Cabinet praised the outcomes of the second ministerial meeting of the dialogue between the Gulf Cooperation Council countries and Central Asian countries. 

He emphasized the Kingdom’s commitment to continue strengthening communication channels with various countries worldwide and supporting areas of joint coordination, including multilateral efforts.

Additionally, the Cabinet expressed its appreciation for the participants of the forthcoming World Economic Forum special meeting, set to take place in Riyadh in the upcoming week, highlighting the Kingdom’s dedication to encouraging global collaboration and tackling shared challenges.

Moreover, the Cabinet announced that the World Bank had selected Saudi Arabia as a center for knowledge dissemination to promote worldwide awareness of economic reforms, underscoring its leadership in achieving significant progress in global competitiveness indicators.

Al-Dossary further highlighted that the Cabinet applauded the achievement of five Saudi cities in obtaining advanced positions in the 2024 Smart Cities Index.

Following today’s session, the Cabinet approved cooperation agreements with Qatar, the Dominican Republic and the UK as well as Turkey, Chad, Portugal, Hong Kong, and Yemen.

Additionally, the body authorized discussions regarding statistical collaboration with Australia and maritime cooperation with Egypt. It also endorsed anti-corruption agreements with South Korea, archival partnerships with Greece, and financial technology collaboration with Singapore.

Authorization was granted for negotiations on science and technology cooperation with the Bahamas. A unified law for international road transport within GCC countries was approved, and additional compensation was granted to Tabah village’s affected families in the Hail region. 

Furthermore, final accounts for various government entities were approved.


UAE and Oman establish $35bn investment partnerships across multiple sectors 

Updated 23 April 2024
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UAE and Oman establish $35bn investment partnerships across multiple sectors 

RIYADH: Trade and economic ties between the UAE and Oman are set to further strengthen thanks to the signing of investment deals worth 129 billion dirhams ($35.12 billion).  

According to a press statement, these agreements cover multiple sectors, including renewable energy, green metals, railway, digital infrastructure, and technology investments. 

Economic ties between the UAE and Oman have remained robust in recent years, with non-oil trade volumes reaching approximately 50 billion dirhams in 2023. 

“The UAE and Oman have strong historical relations that are founded on shared values, goals and principles. The agreements represent a major milestone in our bilateral ties, as they pave the way for us to leverage our collective strength to realize our shared vision of advancement and prosperity,” said Mohamed Hassan Al-Suwaidi, UAE’s minister of investment.  

One of the major agreements signed by both countries was an industrial and energy megaproject valued at 117 billion dirhams. This project encompasses renewable energy initiatives, including solar and wind projects, alongside green metals production facilities. 

The deal’s signatories included Abu Dhabi National Energy Co., Abu Dhabi Future Energy Co., and Emirates Global Aluminium, as well as Emirates Steel Arkan, OQ Alternative Energy, and Oman Electricity Transmission Co. 

Another agreement, valued at 660 million dirhams, was signed between Abu Dhabi Developmental Holding Co. and Oman Investment Authority to establish a technology-focused fund. 

A UAE-Oman rail connectivity project, valued at 11 billion dirhams, was also inked by both countries. 

Additionally, UAE’s Ministry of Investment and the Ministry of Commerce and Trade signed another deal with Oman’s Ministry of Investment Promotion to cooperate in multiple sectors, including digital infrastructure, food security, and energy. 

Etihad Rail, Mubadala, and Omani Asyad Group Co. signed a shareholding partnership valued at 3 billion dirhams. 

Both countries also announced the formation of a UAE-Oman alliance to enhance bilateral economic and trade relations. 

The UAE’s Ministry of Investment, in the press statement, further noted that the signing of these agreements will serve to bolster relations across key sectors and foster socio-economic benefits, contributing toward a stable and prosperous future for both countries.