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AGCS: Global ship losses decline 50% over 10 years
As Africa moves to deepen trade on the continent and its global partners, a complementary industry to drive this vision is the global shipping space. Captain Rahul Khanna says the shipping sector has shown great resilience through the pandemic as evidenced by the strong trade volumes. He is the Global Head of Marine Risk Consulting at Allianz Global Corporate and Specialty joins CNBC Africa to discuss the trends in that space.
Tue, 03 Aug 2021 11:57:51 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- The global shipping industry has shown remarkable resilience amidst the challenges of the COVID-19 pandemic, with strong trade volumes driving its recovery, particularly in Western consumer markets like the US and Europe.
- Disruptions caused by the pandemic, such as factory closures and workforce recovery delays, have strained global supply chains, leading to a significant increase in shipping container prices.
- The Suez Canal blockage and escalating piracy in the Gulf of Guinea highlight the need for enhanced risk management practices and coordinated efforts among stakeholders to address evolving threats and ensure the industry's sustainability.
The global shipping industry has demonstrated remarkable resilience amidst the challenges brought on by the COVID-19 pandemic, with strong trade volumes driving its recovery. Captain Rahul Khanna, Global Head of Marine Risk Consulting at Allianz Global Corporate and Specialty, highlighted the industry's ability to adapt and meet the surging demand for goods, particularly in Western consumer markets like the US and Europe. However, he noted that the pandemic-induced disruptions, such as factory shutdowns and workforce recovery delays, have strained global supply chains, leading to a significant increase in shipping container prices. Despite these challenges, the industry has rebounded and continued to play a vital role in delivering essential supplies throughout the pandemic. Khanna emphasized the critical role of the shipping sector in global trade and highlighted the need for enhanced collaboration among stakeholders to address evolving risks and ensure the industry's sustainability. One key incident that underscored the industry's vulnerability was the recent Suez Canal blockage, which served as a wake-up call for the potential risks associated with mega container ships. Khanna stressed the importance of implementing stringent risk management practices to prevent such incidents and protect supply chains from disruptions. Looking ahead, the Gulf of Guinea remains a concern due to escalating piracy and kidnappings in the region. Khanna noted the changing dynamics of piracy, with an increasing focus on seafarer kidnappings, posing a significant threat to maritime security. He called for coordinated efforts among coastal states and industry stakeholders to combat piracy effectively and safeguard shipping routes in the region. The resilience and adaptability demonstrated by the global shipping industry amid ongoing challenges underscore its pivotal role in sustaining global trade and economic recovery.
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