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1 INTRODUCTION

The first cases of the SARS-CoV-2 virus, which directly

causes COVID-19 respiratory disease, were reported in

the city of Wuhan in the People's Republic of China. On

the 30. January 2020 WHO declared a public health

emergency of international concern in connection with

the spreading of COVID-19 epidemic. Nowadays,

when the globalization phenomenon becomes present

almost all over the world, the possibility of free

movement of people has led to an increase in the range

of impact of the new virus, which like influenza,

smallpox or angina, is transmitted by droplets

(through sneezing and coughing). As a result, the

epidemic turned into a pandemic, as its range extended

beyond China and the Asian continent and covered

almost all the continents. Vaccinations aimed at

reducing the number of new cases of COVID-19,

although they do not fully guarantee that the

vaccinated person will not be able to carry the SARS-

CoV-2 virus. As for the treatment of this disease, there

is as yet no approved treatment for it, only fighting off

COVID-19 Pandemic Impact on a Global Liner Shipping

Company Employee Work Digitalization

A. Przybyłowski

, M. Suchanek

& P. Miszewski

Gdynia Maritime University, Gdynia, Poland

University of Gdańsk, Gdańsk, Poland

Global Liner

Shipping Company ‘X’, Gdynia, Poland

ABSTRACT: ABSTRACT: The SARS-CoV-2 pandemic that began to spread across the world in 2020 still poses a

threat not only to human life and health, but also to the global economy. This situation led to the breakdown of

many supply chains, and this could have resulted in the collapse of the international exchange of goods. The

COVID-19 affected the shipping industries development: shipping operators, port operators, government

authorities, shippers, seafarers, passengers, supply chain operators and others. The paper presents the impact of

the pandemic on the working model throughout the results of a survey conducted among the office employees

of a shipowner company being one of the leaders in the maritime container transport sector. It aimed to

investigate the effects of the pandemic as regards the management and organisation processes in the light of

digital transformation within this enterprise. Employees were asked to express their opinion on the advantages

and disadvantages of the remote work and its influence on the way they performed their duties. At the beginning,

employees were most affected by the lack of direct contact with colleagues. At the same time, many of them

declared that after the end of the pandemic, they would like to combine the remote and office work . The

hypothesis of this research reads as follows: as a reaction to the COVID-19 pandemic, a new working model has

been created allowing the continuity and the efficiency of operations in the maritime container sector, therefore

ensuring the resilience within the global supply chains. The results prove that the transition of office workers to

remote digitalised working mode allowed the company to continue operating efficiently during the first phase of

the pandemic. Actually, this new mode, which was initially meant to be only a temporary solution, has become

the dominant form or a combination with the traditional mode of work, creating a kind of hybrid version working

model in the company.

http://www.transnav.eu

the International Journal

on Marine Navigation

and Safety of Sea Transportation

Volume 16

Number 4

December 2022

DOI: 10.12716/1001.16.04.18

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the symptoms and supporting the functioning of the

body.

Numerous shocks test the resilience and

adaptability of the shipping industry and container

sector itself. The COVID-19 affected the shipping

industries development: shipping operators, port

operators, government authorities, shippers, seafarers,

passengers, supply chain operators and others. It had

an impact on the world trade, because it contributed to

the breakdown of many supply chains, which was

caused by downtime or even production stoppages

(fig. 1).

Figure 1 International maritime trade, world gross domestic

product (GDP) and maritime trade-to-GDP ratio, 2006 to 2021

(percentage annual change and ratio)

Source: https://unctad.org/news/maritime-trade-weathers-

covid-19-storm-faces-far-reaching-knock-effects, 2022-11-10.

At that time, it became even clearer how important

transport is to maintaining the international flow of

goods. The continued functioning of maritime

transport was particularly important, as it is used in the

flow of approx. 80% of cargo in the entire world trade

by volume and more than 70% by value [1].

Therefore, the operation of shipowners

transporting containers [2], which constitute the third

largest cargo group handled by sea transport [3], is also

important. The activities of such a shipowner can be

divided into two separate but closely related aspects.

One of them is the physical transport of cargo, and the

other is the handling of these services from the

organizational side, i.e. office work. Both the work that

the shipowner performs on ships and in offices was

affected by the pandemic and the related restrictions.

However, in order to maintain the circulation of goods

during a pandemic, transport service providers must

not be restricted so that they cannot provide their

services [4], [5].

The changes observed and the strategic behavior of

the market players involved reveal that further

adaptation mechanisms, such as slow steaming,

economies of scale, and capacity management, have

been applied differently between the financial crisis

and COVID-19, resulting in different outcomes. For an

external shock such as COVID-19, impacts are the

outcome of how ports and the shipping industry fit

within complex supply chains [6] and the cargo

composition handled by ports [7]–[9].

To face such difficult challenges [10], management

policies must take into account the infrastructure, work

and engagement sectors required to be fast and

appropriate. It is crucial to apply crisis management, so

that the main things that must be prioritized can be

found. Among them we can find cost optimization,

implementation of digital technology and the use of

data as a direct business enabler, and also innovative

solutions, such as unmanned aerial system (UAS)

technology reducing operational costs, human risk,

environmental impact, and delivery time [11]–[13].

At the same time, seaports need to maintain

resilience through the pandemic by building risk

management plans and expanding the circle of

cooperation regionally and globally, not only within

the port, but also including the maritime supply chains

[14]. The research study results conducted in the Polish

seaports revealed that the terminals extent of

engagement and tactical decisions related to the

pandemic were depended on the type of terminal

(universal or specialised) and its main function playe

within a supply chain [15]. As regards the shipping

management perspective, the industry experienced

issues such as crew changing, trade contraction and the

expiration of shipping certificates [16].

The lessons learned from the second pandemic

wave indicate that companies are expected to begin

searching for a more diversified supplier base in the

near term, thus looking to build a versatile, but cost-

effective, supply chain. Shifting supply chains nearby,

decreasing the suppliers base, increasing the

digitalization of supply chains are essential tactics

companies have to start committing to [17].

One should also remember about socio-economic

COVID-19 consequences, threat to the existence and to

the physical and mental health, especially during the

first phase of the pandemic [18], [19]. Also, the key to

success may be an organizational elasticity as a

framework to manage the long-term organizational

impact of the current pandemic [20]. According to

some research results, the three-dimensional nature of

employee well-being may include : workplace

relationships, health, and work–life balance [21].

A framework for operations and supply chain

management at the times of COVID-19 pandemic has

been suggested, including six perspectives, namely:

adaptation, digitalization, preparedness, recovery,

ripple effect, and sustainability [22]. Still, there is a

necessity of quick response to crisis situations and

searching for innovative ways to overcome the

operational and financial challenges. The results of

current research pointed also out the critical problem

with the lack of the so-called “Plan B”, helping supply

chains quickly react on disruptions occurring in the

flows [23]–[27].

Thus, there is still a need for research concerning

theoretical and practical implications for improving

employee's performance through the digitalization of

service organizations and answering the question

whether the coronavirus pandemic is the cause of the

crisis or rather a turning point and a unique

opportunity to develop in a highly competitive

environment [28], [29]. Covid-19 has indeed

accelerated the society’s digital transformation

towards Industry 4.0. Some other research show that

COVID-19 pandemic helped to develop the awareness

about the climate change by demonstrating how the

decrease in economic activity can have a profound

effect on cutting CO2 emissions. At the same time, it

resulted in an enhanced family life and interpersonal

relations contributing to the quality of human capital

and the level of happiness [30]–[32]. Also, recent

studies concentrate on the relationship between

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tourism development and the decrease of pollution

levels [33].

When considering the effects of the Covid-19 on the

size of the enterprises, SMEs have more experienced

more difficulties than bigger companies, due to less

customer demand for goods and services, limited

resources and also problems with digitalization. In this

respect, it is interesting to investigate the opportunities

in digital transformation from the perspective of

startups and traditional organisations [34]–[38]. Other

research focus on the effects of internal marketing

orientation on job satisfaction, and the effects of job

satisfaction on job performance and counterproductive

work behaviors. The results of a study carried out in

Ukraine show that the spread of the COVID-19

pandemic and quarantine restrictions stimulated the

growth of demand for digital technologies to meet the

communication, professional, consumer and economic

needs of the people, contributed to the spread of new

non-standard forms of employment using information

and communication technologies. In the end, for some

it was considered a long-overdue push for

digitalisation, for others it revealed how much their

work was related to printed matter.

Obviously, both sides: employers and employees

with no previous experience of telework have faced the

advantages and drawbacks of this work arrangement.

According to latest research, modification of legal and

contractual regulations is the only factor that has a

weak and insignificant influence on telework. Still,

there is a need of time and resources to meeting the

new challenges created by such fundamental changes

and supporting the displaced workers and monitoring

the new opportunities in the labor market, but most

importantly, it also requires new leadership concepts,

paying special attention to young workers [39], and

individual support for every single employee in the

light of potential precariousness of the workforce [40]–

[46]. Without any doubt, New Normal offers a new

playing field which, as some researchers claim

(Gruenwald, 2020), is ‘still not level and tilts like the old

one but it can mean a new start for education and the

economy in a more local than global society’ [47].

There is evidence that people value digital tools and

were able to find methods of effective and efficient

collaboration in distant work environments [48]. What

is more, employers and HR personnel/Consultants

have been challenged to re-think, re-design and think

‘out of the box’ and invent the best practices for

running their businesses and industries, as well as re-

define roles during this turbulence [49]. At the same

time, despite the investments which the European

countries have made in recent years in digital

infrastructure, there are large disparities in terms of

adaptability to telework [50].

Also, in the COVID-19 time, several tendencies are

noted: digitalization, changing the model of mobility,

changing consumer buying habits, infodemic,

increased attention to one's health, hygiene and

healthy lifestyle, changes in interpersonal behavior

[51]. For example, according to some research

(Butkaliuk, 2021), ‘having considered the impact of the

current process of automation, robotization and

digitalization of the global economy, without changing

the socio-economic and political configuration of the

structure of the modern world, the potentially high

utility of the latest achievements of science and

technology will be significantly limited and

subordinated mainly to the economic interests of

capital owners, and will not work for the benefit of all

humanity and social progress’ [52]. One should also be

aware that digital transformation is based on five

different areas: customers, competition, value,

innovation and data [53]. A the same time, aspects of

surveillance and privacy gain in importance with

increased digital usage.

One of the study revealed that remote working has

been used to mitigate the negative impact of the Covid-

19 pandemic on the productivity of organizations and

it was also revealed that the HR managers have

undergone a major change of role in maximizing

productivity, engagement, collaboration, satisfaction

level and work-life balance of the employees. As the

author claims (Roychowdhury, 2021), it was found that

there exists a significant association between the

preference of remote working across gender [54]. Also,

problems of digitalization have been exacerbated and

must be further understood and ameliorated in the

post-COVID world [23]–[27]. Thus, companies will

face the challenge of combining virtual and physical

working while offering employees an appropriate

working infrastructure. However, the future

consequences for work design remain unclear, as many

companies are still in a state of instability [55]. It will be

also interseting to follow how AI-based algorithms are

used to direct, evaluate and discipline workers, and

how workers respond to these forms of algorithm

management [56].

Meanwhile, ships still have to sail and shipowners

must ensure that these ships can be manned. The

situation is a bit different in the case of office work,

without which the functioning of the enterprise would

also be impossible. The introduced restrictions on

maintaining social distance and limiting movement

forced entrepreneurs to close their offices, which were

places where large numbers of people gathered on a

daily basis. Therefore, employees had to switch to the

so-called remote work, also known as home office. An

example here is a maritime container transport

company “X”. It can be assumed that currently all of

its’ offices do not follow the same rules of work

organization, depending on the epidemic situation in a

given country. However, the transition to remote work

of a large number of employees was certainly a

challenge for the company, especially since the success

of this operation depended on its future.

2 RESEARCH METHODS

The aim of the paper was to investigate the effects of

the pandemic as regards management and

organisation processes in the light of digital

transformation taking as a case study a global liner

shipping company. The hypothesis of this research

reads as follows: as a reaction to the COVID-19

pandemic, a new working model has been created

allowing the continuity and the efficiency of operations

in the maritime container sector, therefore ensuring the

resilience within the global supply chains.

In particular, the purpose of quantitative study

carried out using a questionnaire focused on finding

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out in particular the advantages and disadvantages as

well as the opinions of the company’s office employees

about a new working model: remote work. The

research problem has been therefore the answer to the

question of how well company “X” has adapted to

work in pandemic conditions.

With 253 vessels, 11.9 million TEU transport

volume, around 14,300 employees in more than 400

offices in 137 countries, this enterprise is a leading

global liner shipping company. It offers a fleet with a

Vessel Capacity of 1.8 million TEU, as well as a

Container Capacity of 3.0 million TEU including one of

the world’s largest and most modern reefer container

fleets. A total of 126 liner services worldwide ensure

fast and reliable connections between more than 600

ports on all the continents. The company belongs to the

leading ocean carriers for the trades Transatlantic,

Middle East, Latin America and Intra-America.

The research sample consisted of the employees of

this company, who usually work in the office located

in the city of Gdańsk in Poland. The survey has been

carried out from 22.February 2021 to 01.March .2021

and a total of 124 respondents reacted, which is a

representative research sample of this office.

The questionnaire was prepared via the Google

Survey tool and consisted of fifteen questions. The

respondents also had the opportunity to share their

opinions and thoughts on the pandemic and remote

work by entering a comment into a text field specially

prepared for this purpose. Questions regarding the age

and gender of the respondent were placed at the end of

the questionnaire, but the answers were to be analysed

first to facilitate the subsequent interpretation of the

other results.

The largest group were people aged 26 to 50 (73%

of total), which may indicate that the workforce is

relatively young. For the employer, a factor more

important than the experience, may be the ability to

quickly adapt to changes which is typical of younger

employees. Out of the 124 respondents, 59% were

women and 41% were men. Women have been more

numerous than men in the 18-25 years old group (9%

of total) and 26-50 age groups and in the group for

more than 50 years old (18% of total) men slightly

dominate. A similar relationship can be read by

analysing the answers to the question about experience

at company “X”, and they are presented in Figure 2.

Figure 2. Respondents’ period of employment in the

company “X”

Source: own elaboration.

Almost a quarter of all respondents have been

working in the aforementioned enterprise for less than

a year, which proves that in a relatively short time the

number of office employees increased by approx. 30%.

It should also be added that these employees were

hired in the period from March 2020 to March 2021. It

was the time when the COVID-19 pandemic was

spreading around the world, but it seems like it did not

thwart the plan to hire new employees.

The fact that the group with 6 or more years of work

experience is the most numerous may indicate that,

contrary to the interpretation presented above, the

experience of employees is important to the employer.

Moreover, the largest age group, which is 26 - 50 years

of age, includes a big number of people with relatively

long work experience, and it should also be taken into

account that these respondents also have an experience

gained in previous jobs.

3 RESULTS

A factor analysis was performed in regards to all the

questions describing the perceived advantages and

disadvantages of remote work during the COVID-19

pandemic. While we assumed that the general

variability of these responses might be similar to each

other, we wanted to verify whether there had been any

underlying attitudes or beliefs, represented by latent

variables (factors). Exploratory factor analysis (EFA)

with an extraction by the principal components

methods was chosen so as not to assume underlying

data structure which would be necessary for

confirmatory factor analysis or as a part of structural

equation modelling. The Kaiser-Meyer-Olkin criterion

of eigenvalues higher than 1 was assumed as the main

criterion regarding the choice of the number of factors

extracted (tab. 1).

Table 1.Factors extracted for the remote work scale

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Variables Factor 1 Factor 2

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Use below scale to evaluate advantages 0.71 -0.08