Coronavirus Impacts Significant to Ports, Shipping, Logistics
Amid diminishing cargo volumes, ports’ first priorities are safety, well-being of people
The American Association of Port Authorities (AAPA) – the unified and recognized voice of seaports in the Americas – today issued the following statement that recognizes the threat to both human health and world economic stability related to the novel coronavirus (COVID-19) outbreak.
“While the global economic impacts to the port and maritime industry from the coronavirus outbreak are significant and growing, the human impacts are our greatest concern. Since ports are a nation’s first line of defense against threats ranging from terrorism to pathogens, they take their role seriously about protecting the safety and well-being of their communities.
In the U.S., ports are closely following instructions and protocols from appropriate federal agencies to quickly respond to the coronavirus threat. Like AAPA, they believe the most important things are to ensure that as few people as possible become infected, that those who have been infected are well treated and receive quality care, and that we mourn for those whose lives have been tragically cut short by this pathogen crisis.
For seaborne trade and travel, it’s both a blessing and a curse that there’s a two-week latency period for coronavirus symptoms. The lag time gives our ports, Coast Guard, Customs agents and health officials time to prepare for screening and, if needed, quarantine or rerouting of crew members or travelers thought to be infected. AAPA keeps its U.S. member ports connected daily with these federal agencies and recommends its member ports also work closely with their specific Captain of the Port for local notices and updates.
By law, it’s up to incoming mariners and ship operators to report if anyone is thought to be sick on-board. These protocols are always in place for our on-guard industry.
Supply chain disruption is a different issue. The overall economic impact of this type of crisis can easily run into the tens of billions of dollars. Due to the coronavirus outbreak, cargo volumes at many U.S. ports during the first quarter of 2020 may be down by 20 percent or more compared to 2019. While we haven’t yet heard specifics about the impacts to the cruise travel industry, we echo what the Cruise Lines International Association is saying, which is that while the relative impact to global cruise operations isn’t extensive at this time, we recognize that the impact on even just one person is significant.
Things will rebound eventually, and indeed we’re hearing news about factories that are coming back on-line in China, and ports there ramping back up to move the cargo. At the same time, supply chain managers around the world are working tirelessly to keep cargo moving to ensure that the goods we need are available when and where we need them.”
Chris Connor President and CEO American Association of Port Authorities
On 2/3/2020, the U.S. Coast Guard issued a Marine Safety Information Bulletin stating that vessels carrying passengers who have been in mainland China within the previous 14 days will be denied entry. Other vessels with crew members who have been to mainland China within the previous 14 days, with no sick crew members, will be permitted to enter and conduct normal operations, but crew members will be required to remain onboard with very limited exceptions. If a crew member who has been to mainland China within the previous 14 days is brought onboard a vessel in transit to the United States, the master must immediately notify the Coast Guard.
For commercial travelers, U.S. Customs and Border Protection (CBP) is limiting entriesfrom the affected regions to U.S. citizens, legal permanent residents, and their immediate family members. CBP has also set up additional screening at ports of entry.
AAPA recommends its U.S. member ports stay in close contact with their specific Captain of the Port for local COVID-19 notices and updates.
AAPA recommends contacting the U.S. Coast Guard’s Office of Emergency Management with specific questions about the maritime response to the outbreak. The email address is firstname.lastname@example.org.
About AAPA Founded in 1912 and recognized as the unified voice of seaports in the Americas, AAPA today represents 130 of the leading seaport authorities in the United States, Canada, Latin America and the Caribbean and more than 200 sustaining and associate members, firms and individuals with an interest in seaports. According to IHS Markit’s GTA Forecasting (previously known as World Trade Service), combined international sea trade moving through Western Hemisphere seaports in 2018 totaled nearly 4.2 billion metric tons in volume and US$3.7 trillion in value. Of that combined total, seaports in Central and South America handled 1.86 billion metric tons of cargo valued at US$1.17 trillion, while North American seaports handled 2.34 billion metric tons of goods, valued at US$2.53 trillion. Within North America, U.S. seaports handled 1.01 billion metric tons of international trade valued at US$1.95 trillion, while Canada’s seaports handled 380.53 million metric tons of goods valued at US$266.67 billion, and Mexico’s seaports handled 352.53 million metric tons of cargo valued at US$312.91 billion. To meet the growing demand for trade, the AAPA and its members are committed to keeping seaports navigable, secure and sustainable. For more information, visit www.aapa-ports.org. On Twitter: http://twitter.com/AAPA_Seaports