Covid-19 briefing

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- ECONOMIC IMPACT -

Latest update: 18 August 

After months of decline, GDP estimates for many countries have turned positive.

Hiring prospects seem to be gradually improving in 2021.

88%

European Maritime Safety Agency (EMSA) figures show that the Covid-19 pandemic drove a 3% increase in the share of world trade carried by sea to 88%.

-10.2%

However, EMSA figures also showed that despite one in five ships being operated by EU companies, overall EU maritime traffic dropped by 10.2% in 2020.

- SECTOR IMPACT: shipping and travel -

Latest update: 4 August

shipping crisis hits home

5.5%

5.5% of all ocean capacity is currently waiting outside a port, according to Lloyd's Loading List.

350%

The price of a 40-foot container routed from Asia to Northern Europe rose by 350% in 2021.

Cruise and shipping industry

GlobalData’s Covid-19 Cross-Sector Impact report states that while the pandemic shut down most cruise lines from March 2020, there are areas of the world where cruise ships are restarting. Mostly in Europe and Asia, various single-nationality cruises have begun calling in at a limited number of ports. 

In the US, Royal Caribbean International is the first cruise line to receive approval from the Centers for Disease Control and Prevention to do a test sailing for volunteer passengers. Despite some causes for optimism, the short-term outlook for cruises still seems bleak.

Air travel

April saw The International Air Transportation Association (IATA) declare that it expects net airline industry losses of $47.7bn in 2021 (net profit margin of –10.4%).

Losses will be improved since 2020 and the onset of the Covid-19 pandemic, but with government-imposed travel restrictions still in place across destinations worldwide this will continue to dampen international travel recovery. Airlines are therefore planning for an extended recovery period.

Many intermediaries are now focusing on experiences as a primary focus with partnerships becoming more common. Recent partnerships include Trivago's (Expedia Group) partnership with Musement, TUI's experiential subsidiary and Booking.com's attraction partnership with Viator (Tripadvisor). 

As travel remains restricted, tours and activities look to be another revenue stream.