The maritime industry's response to the critical operational challenges faced in COVID-19: business survival strategies (container and cruise sectors)

Abstract

COVID-19 has affected shipping operations worldwide and most, if not all maritime sectors are faced with critical operational challenges which require immediate attention in a short amount of time. National lockdowns and quarantine measures have been put in place, resulting in many delays and inefficiencies in operations. As a result, there is a huge economic impact on the shipping industry. Debts and bankruptcy are on the rise due to the maritime companies’ inability to repay loans and the financial struggle is apparent in various sectors. In this paper, we will review the economic impact of COVID-19 on the shipping industry, especially the container and cruise sectors, and further investigate shipping companies’ responses to the critical operational challenges. We will take a look at how shipping companies are pivoting their existing business strategies or developing new ones to adapt and survive in these unprecedented times. This study will also explore options and recommendations on how the heavily impacted sectors can be able to sustain their business in the long run. This paper also serves as a reference point for future research surrounding this topic.