How to deal with temporary shipyard lockdowns

How to deal with temporary shipyard lockdowns

Many shipyards are pausing their projects in the light of the current Covid19 situation. The temporary lockdowns are expensive, complex and risky. Trailing the temporary lockdowns is the disruption to the build programs. Changes to the build program have a massive impact contractually and cost- and capacity-wise for both ship owners and shipyards.​

Shipyards need to define the critical uncertainties and develop plausible scenarios in order to identify the impacts and the responses to give for each one of them. However, many organisations tend to choose just one particular scenario and build their strategy, business plans and build program around it. The uncertainties surrounding the Covid19 outbreak is far too big to rely on one plan and direction. Scenario planning is not about choosing just one option for the future but rather dealing with all of the possible outcomes to develop a strategy that will stand the test of all scenarios.     

Besides helping clients with planning of temporary lockdowns, OMT assists several clients – ship owners as well as shipyards - in the temporary lockdown period with developing new build programs striving to help clients make the best out of an otherwise bad situation. OMT develops together with the client multiple scenarios and contingency plans taking into account the potential developments related to the Covid19 situation (travel restrictions, distancing guidelines, logistics and supply chain of materials and equipment, etc.) and assess each scenario in terms of safety, cost, schedule and risk.

The end result is a solid strategy for how to deal with the lockdown during and after the Covid19 situation. If you are aware of what could happen, you are more likely to deal with what will happen.