Can you elaborate on how COVID-19 affect your chosen company?

The coronavirus epidemic, which has severely hurt the world economy, has had a negative impact on the shipping sector globally. Almost all nations heavily depend on the shipping sector as a vital link in the supply chain for the great majority of businesses. Some of the effects of the epidemic in Qiaolian include the following:

1. Port closures

Ports have been closed during quarantine periods and to protect the workers’ health. A few restrictions have also been put into place, such as the ban on marine vessel entry into several countries, which forced these boats to remain at sea without a port of destination. International maritime transportation infrastructures are in disarray as a result of certain jurisdictions’ restrictions or outright bans on ship admission.

2. decreased demand for shipping

The danger of COVID-19 spreading is being reduced by each country’s capable health authorities, which has impeded transnational trade in products and commodities. All of these items, which were formerly simple to transport by ship or other marine vehicle, must now adhere to a predetermined set of norms and guidelines. The delays brought on by quarantine periods have further decreased the demand for such goods. Due to the 14-day waiting period or the waiting period determined by the relevant authorities in each nation, perishable commodities cannot be transferred.

3. Conflicts between owners and charters

As a consequence of the lost time and money, several types of conflicts are developing between the owners and charters of vessels that are chartered by charters. Disagreements over the duration of the rental of such boats occur when a charter is permitted for a certain amount of time, but that period is later ended due to an act of God.

4. Conflict resolution in idle time

Owners rent out their ships to charters for a certain rate and time. If this window of time is passed, more charges will be imposed. COVID-19 has made it particularly difficult to resolve the issue during this time period due to the boats’ inability to reach specific ports, forcing the parties to contribute to the payment of disputed extra expenses. These expenses are not paid as a result of force majeure, costing the parties money.

According to your SWOT analysis, which factor is the most important one for the future development of Zhuhai Qiaolian Overseas Consulting?

The most important feature is competition. I believe that how Qiaolian responds to competition today determines how and whether it will be able to expand, compete on a national and international level, or pursue future opportunities in the shipping sector. Competition in the market that is both healthy and intense is essential to the proper operation of any business. When businesses are forced to compete for consumers, it often results in cheaper costs, superior quality products and services, more variety, and increased levels of innovation. This is shown by fundamental economic theory.

You mentioned some recommendations for your case. In your opinion, which one is the most urgent one for Zhuhai Qiaolian Overseas Consulting?

The most urgent recommendation for Qiaolian is addressing the issue of change and getting over the issues linked to change. Change management will be a core competence for the organization as it begins to prepare for the next phase of competition and restructuring post-covid.