Ship Recycling: Pakistan reopens & India extends the lockdown

In Pakistan, standard operating procedures now allow sign off of foreign crew, except Indian, Bangladeshi and Bamar seafarers. Prior to beaching, a minimum 15 days of voyage is required OR the vessel will be kept on anchorage in Gadani for a period of 15 days starting from the time she departed from her last port.

After beaching a PHO (General physician) will go on board to verify the medical fitness of crew members, if all found in good health a clearance for disembarkation will be issued and the crew will be put on the next available flight within two days.

If in case flights are unavailable, then the foreign crew can comfortably stay in a hotel room.

If PHO suspects a COVID19 patient, then the whole crew will continue to remain on board for the next 14 days. In this time all boarding, food, medical arrangements etc. needs to be provided by the seller’s agent.

Meanwhile in India, a total of 101,000 cases are confirmed with 39,173 recoveries (recovery rate stands at 39% of the total) and 3,163 deaths (loss of life at 3% of total) via new developments in restructuring the Red-Orange-Green zones, the state authorities have accepted the lockdown and its effects until 31st May, 2020.

Maharashtra, Gujarat and Tamil Nadu are the top three affected states within the country.

Mumbai, a major metropolitan in India alone constitutes about 21,335 positives (21% of the total) followed by the national capital New Delhi with 10,054 positives (10% of the total).

In India, standard operating procedures on sign on and sign off of Indian seafarers were issued from 21st April, 2020 strictly subject to vessel’s arrival at an Indian port carrying Indian crew.

After sign off, Indian crew members are guided either to a government safe-house or a hotel, from where they are released if tested Covid19 negative after 14 days of quarantine.

Interstate / domestic transport arrangement of the crew is possible with a transit pass, where in each car is only allowed to have 1 passenger with 1 driver. Though cumbersome this is a very good way to make sure that the spread is controlled and seafarers can reach back to their house rather than being stranded on the vessels.

Cash buyers and ship recycling associations in India are requesting the ministry of shipping to list standard operating procedures that supports sign off of foreign national crew stranded on board.

In India, the Government is testing conceivable explanations through which they can restart the aviation sector, in the next few days we will have a clear picture on this topic. We anticipate that by the 1st week of June essential air-travel lobbies both domestic and international may resume.

Recyclers in India are reluctant in purchasing vessels because of ambiguities such as:-

i) The duration until when this pandemic will stay

ii) Major sense of fear that it may keep relapsing till a cure is found

iii) Up to 70% of the working hands have returned back to their villages and will only return until and unless the conditions improve or by end of monsoon. We believe they will return only when the government will lift lockdown on interstate movement using public transport.

Goldman Sachs experts believe that India might witness a horrible recession having a 45% slump in the second quarter of its economy igniting a fall of 5% in the real GDP in financial year 2021, which would be deeper than any other recession that India has ever experienced.

On the other hand, to curb the ever increasing economic turmoil, especially in the retail, automobiles, housing and non-essentials sector the government is directing potential interests to promote the use of domestic brands and its manufacture.

A base economic package of INR 20 lakh crore (10% of the India’s GDP) is released by the Government as a contingency fund in the form of incentives to safeguard the micro, small and medium enterprises from bankruptcy and even to support masses that are immediate victims of recession and inflation caused due to the pandemic.

NBFCs are provided with major reliefs through several moratorium schemes so that they can continue borrowing money to businesses.

Due to the lockdown 4.0, Indian indices such as SENSEX and NIFTY turned red further fueled with Q2 results around the corner of many leading companies. NIFTY touches a 22 week low of 8500-9500 point level whereas now prices of precious commodities such as gold and silver are increasing.

Nevertheless, Investors with a positive mindset believe that this is the best time to enter the market!

India is a very densely populated geography with a combined population of the entire USA, Europe, Brazil and Argentina. Under such circumstances keeping the mass of land it holds in this world, it will take a lot of efforts by the governments and its citizens to control and contain coronavirus.
Source: Best Oasis

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