Shipping and Logistics Faces New Storms Ahead

November 22nd, 2021

Trade finds a pattern. It’s not just the cargo but the movement of equipment to carry this cargo that matters.

INTERVIEW – SHIPPING ASSOCIATION OF TRINIDAD AND TOBAGO (SATT)

Hayden Alleyne has been a huge proponent of getting our shipping, logistics, and all-related individuals vaccinated and back to work in a safe and responsible manner. The organisation, before COVID-19, would have been involved in seeking ways to continue developing the local maritime industry with a view to overall national development. Today that has changed into ensuring safety for returning persons involved in all-related sectors and navigating the new changes in electronic services in the industry, designed to reduce contact spread of the virus. However, there are also many other issues on the horizon.

Hayden Alleyne has been a huge proponent of getting our shipping, logistics, and all-related individuals vaccinated and back to work in a safe and responsible manner. The organisation, before COVID-19, would have been involved in seeking ways to continue developing the local maritime industry with a view to overall national development. Today that has changed into ensuring safety for returning persons involved in all-related sectors and navigating the new changes in electronic services in the industry, designed to reduce contact spread of the virus. However, there are also many other issues on the horizon.

How would you describe the last year for the sector?

“It’s been challenging on the local front, with contraction in demand due to restrictions and the lockdown. Restaurants, in particular, not operating to capacity, affected imports to feed that demand with products from fresh produce to foreign imported food. And internationally, this situation is even worse,” Alleyne explained. “Trade finds a pattern. It’s not just the cargo but the movement of equipment to carry this cargo that matters.” In the past highs of the pandemic, containers were getting bottlenecked at some ports, while others were waiting for these to be returned to continue trade. It was not just that a series of blips disturbed the system, but that the highly intricate supply chain dynamic required to keep business moving was disrupted, with numerous delays along with it and once you have delays, you have increased costs,” he highlighted. “And on the ground, it gets grimmer, with several freight forwarders and importers closing their operations in the past year.”

What were the significant challenges? What, if anything, is being done, or can you advise, to address them?

“We have to move the conversation on trade from one of just Customs and the State seeking to earn revenue, to one where it’s about a greater ease of doing business. That’s where our thinking needs to be,” he advised. “In moving to be a real First World player in trade, we have taken a collaborative and understanding approach in recent times in how we work with the State through the Customs and Excise Division. But with that in mind, we can’t let a crisis go to waste! We have seen great strides being made in electronic documentation, so we have more e-delivery of documents, and are moving to make that the status quo,” he noted. This approach not only reduces personal contact with documents but is also in line with the move to digitise and digitalise Trinidad and Tobago.

What are the most significant initiatives/projects in the last year, and are any expected by 2022?

According to the SATT President, with COVID-19, everything has to be reimagined and made as contactless as possible, along with everyone coming on board with working remotely and meeting virtually. “Most of our executive council now meets virtually and it’s both a cost and time savings,” he pointed out. “We have also made use of freely available technology – using VIP WhatsApp Groups for ease of communications in terms of vessel sailings, times and updates, for persons in the industry,” he added.

Any benefit to the installation of the new Ship-to-Shore crane?

The Port of Port of Spain commissioned a new state-of-the-art, rail mounted, Ship-to-Shore (STS) crane replacing the Port Authority of Trinidad and Tobago’s oldest Paceco STS crane, which was 42 years old.

According to Minister of Works and Transport, Senator the Honourable Rohan Sinanan, who noted at the installation, “The crane was about 17 years past its shelf life and it will be auctioned off by the Port Authority. The new STS crane can move more containers in a shorter space of time so that will improve the efficiency of the port. This crane does about 35 containers an hour, the cranes we used before that probably did half that amount.” The SATT President believes this will bring very measurable improvements to efficiency at the Port.

What is your outlook for the industry in 2021-2022?

“We will start to see recovery in the economy soon, once things continue as they are locally and globally, but there are expectations we need to be aware of. The price of freight will continue to be high for some time – in the last year the cost of a container has moved from TT$4-5,000 to TT$11-12,000 per container,” he mentioned. According to Hayden, the price may never return to pre-pandemic levels, but it will stabilise. “We have to consider that climate change and weather is coming into play as well more and more, and coupled with supply chain delays, we will have some challenges ahead.” Still, the SATT President is optimistic that the economy will see an upswing, but it is heavily contingent on the population being vaccinated as best and as fast as possible.