According to Seatrade Maritime , At the New York Maritime Forum, organized by Capital Link, the intersection of global supply chains and macro geopolitical developments took center stage. The panel discussed how disruptions are reshaping the maritime industry, focusing on both short-term benefits and long-term challenges.
Geopolitical Disruptions: A Double-Edged Sword
Torbjørn Wist, CFO of Wallenius Wilhelmsen ASA, shared his perspective on the impact of supply chain disruptions. While disruptions can be advantageous in the short term by shifting the supply-demand balance in favor of operators, they pose significant long-term challenges. For instance, though higher vessel hire rates may benefit operators temporarily, these shifts eventually strain the industry’s capacity and operations.
Navigating Risk in Uncertain Waters
Mark O’Neil, CEO of Columbia Group, emphasized the shipping industry’s remarkable resilience, particularly when addressing the challenges posed by developments in the Red Sea. He highlighted the evolving nature of risk assessment, noting that factors such as new technologies—specifically underwater drones—have increased the risks, making naval escorts insufficient. O’Neil underscored the difficulty of determining when risks become unacceptable, especially in rapidly changing geopolitical landscapes.
Adjusting Operations Amid Conflict
Wallenius Wilhelmsen was among the first ro-ro carriers to cease using the Red Sea route due to safety concerns. Wist pointed out that while the decision to re-route ships around the Cape of Good Hope added costs, the priority remained the safety of crew and vessels. Though rerouting meant losing valuable trading days, Wist explained that the extra cost had minimal impact on the company’s overall performance.
Differing Impacts on Liner and Tramp Operators
Dr. Tassos Aslides, CFO of Euroseas and Eurodry, highlighted the distinctions between how tramp operators and liner companies respond to disruptions. Liner operators, he noted, face more significant consequences as disruptions force them to adjust entire schedules. He revealed that his companies had avoided the Suez Canal since the Red Sea conflict escalated, reflecting the complexity of risk management for liner shipping.
Longer Routes
In response to whether rerouting ships around the Cape of Good Hope would become a long-term solution, O’Neil indicated that the industry had already adapted. The extended voyages have paradoxically benefited shipping companies by increasing vessel-day demand. Wist echoed this sentiment, noting that the longer routes have worsened an already tight supply-demand balance, especially in trades from China. As a result, shipping companies like Wallenius Wilhelmsen are now operating at more than full capacity to meet global demand.
This version presents a structured narrative focusing on how the maritime industry is responding to geopolitical disruptions, emphasizing the balance between short-term benefits and long-term challenges while addressing risk management, operational adjustments, and the impacts of longer shipping routes.
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Source: Seatrade Maritime
