In Peru we spoke to top P&I correspondents and maritime lawyers Messrs. Interlog Servicios S.A.C , Mr. Francisco Arca Patiño who leads the firm together with Carla Paoli Consigliere. Francisco is a former President and member of the Peruvian Maritime Law Association and Member of the Maritime International Committee. Francisco took part as Professor of the Faculty of Law in Lima specialising in Maritime Law, participant of the Maritime Law Commission of the Lima Association and speaker at national and international seminars. Interlog act as commercial correspondents of the main P&I Clubs as well as various international insurers. Thank you Pancho for giving us this interesting insight through our Q&As on Peru!
1) What is the current situation and reality for the people of Peru in terms of health and safety?
1.-Peru has a very difficult geography. A high percentage of its population lives in rural areas with limited access to health care, not taking into consideration that the Peruvian Health System was not prepared for a situation like the one created by the pandemic. Further and on the economic aspect, Peru saw its situation aggravated by the large percentage of its population being self- employed and sub- employed, and mainly informal, without electricity; therefore the people needed to work on a daily basis facing a quarantine that did not take this situation into account. Thus the large impact of the pandemic on the population. As to the formal sector, the companies have lost income with the activities gone to zero in large quantity and millions having lost their jobs, others seeing its contracts suspended or mutually agreeing to a certain amount of discount in their remunerations, both the companies and the employees facing difficult times. Politically the situation has been maintained reasonably stable, for the Government applied several economic stimulus to help the needed families. In general, there has been a universal support, including that of the individuals and corporations in the same line of action.
2) How has Covid-19 affected the already tense political situation in Peru and how hard has the Peruvian economy been hit by both?
As mentioned above the political situation remains reasonably stable, with a new Cabinet who has an economic liberal approach to counter-balance a Congress recently elected for one and a half year, due to the democratic closing of the original one, with a tendency to approve laws to obtain popular acceptance in the very short term.
3) how has Covid-19 impacted and continues to impact the shipping industry in Peru, i.e. for Peruvian shipowners and for Peruvian ports and terminals?
Covid-19 pandemic has had a minimum impact both in Shipping and Port activities in Peru, since the application of basic rules and protocols were strictly followed from the beginning. Thus the coastal and international trade were never suspended with little effect, save for the inevitable retraction of the market.
4) As a renown and leading P&I correspondent, do you see a pattern or trend in claims which are triggered by the Covid-19 situation?
According to our experience as P&I correspondents and maritime lawyers, we cannot observe a pattern in claims affected by COVID-19.There has been very few cases involving foreign crew on board foreign flag vessels having to be disembarked and quarantined .
Regarding those cases happening in the coastal and bay trade and shore installations, they have been immediately recognized and treated by the employers by placing them in quarantine with very little loss of lives, same that have not been made aware to us.
Francisco Arca Patiño
Chairman & General Manager – Interlog Servicios S.A.C.