Ships and vessels to be laid for the first time this decade due COVID-19 stress on the demand

- By Oviya Vaiz May 16, 2020
London

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The entire Maritime industry is gearing up to face the upcoming slack of demand for goods and travel which will halt passenger cruising temporarily as a result of the world pandemic COVID-19.

The volume of cargoes carried is expected to fall by 10% this year which will be the biggest slack in 64 years of the existence of the industry and also the first time after the 2008 Global crisis. Cruise lines and container ships are the first kind of vessels which are to be laid off by their owners and start preparing to keep their vessels in good shape when kept out of use.

Small passenger vessels, ferries and ro-ro are equally at risk through Northwestern Europe and Mediterranean region wherein firms are unable to function profitably and are hence studying their options regarding vessel layoff.

Containerships are predicted to bring in more losses in billions since more than hundreds of trips were cancelled in March and April and more is expected in May.