The Caribbean Shipping Executives Conference (CSEC) of the Caribbean Shipping Association (CSA) started on positive note on Monday, May 24 as participants were informed that the global trade cycle was now “in the upturn period” and that Caribbean shipping companies can improve their competitiveness by offering specialised service to niche markets.
The good news was delivered by Lars Jensen, respected analyst and thought leader in the maritime industry, during his keynote address on the opening day of the two-day virtual conference. In his address, Jensen traced the recent chain of events in shipping; beginning with the elements that were in motion pre-COVID, the initial COVID impact, the current COVID impact, the transitional phase and the post-COVID normality that is projected. He noted that the decrease in consumer demand that the world experienced in the first half of 2020 was followed by an upturn in the last half of that year that has continued into 2021. He pointed out, however, that the upturn is not evenly spread across all regions and that the Asian and North American markets are mainly responsible for the strong increases in consumer demand.
Jensen, who is CEO of Vespucci Maritime and the author of the book “Liner Shipping 2025”, also informed participants that the increased freight rates being charged by the shipping lines are expected to continue, despite the increases in commodity production and consumer demand, because there is greater consolidation taking place in vessel ownership. He added that demand is projected to outgrow shipping capacity in the coming years because the biggest shipowners are restricting newbuilding as they await the technology for lower carbon emitting fuels that is needed to power vessels in keeping with the International Maritime Organization’s mandate that the shipping industry lowers vessels’ carbon emissions by 50% by the year 2050.
In the current scenario, Jensen pointed out that there are opportunities for regional shipping interests, especially in the areas of intra-regional shipping and in offering specialised services for niche markets. The keynote speaker said “although digitalisation is necessary, it is not a guarantee of success” and encouraged Caribbean shipping companies to offer specialised services of high quality that address the specific needs of special markets in the various territories. He added that it is such “service differentiation” that will give a competitive advantage.
Earlier in the day, CSA President Juan Carlos Croston opened the proceedings by thanking members of the CSA for their strong support of the programs and activities of the CSA over the past year. He also asked for their continued solidarity in lobbying regional governments to enact national maritime laws and regulations for the protection of seafarers and the streamlining of the Caribbean and Latin American region’s collective approach to the requirements of the industry.
During his address, the CSA President and participants observed a moment’s silence in memory of members of the CSA who had died during the past year, including Harriat “Harry” Maragh, Robert Kinlocke, Nathan Dundas, Leopoldo Fontanillas and Joseph Lowe.
Other highlights of the opening day of the two-day conference were: a book presentation by Yann Alix of the SEFACIL Foundation to the CSA, and the launch of the CSA’s Caribbean Research Institute by William Brown, President of the Shipping Association of Jamaica and Ricardo Sanchez Senior Economic Affairs Officer of the Economic Commission for Latin America and the Caribbean.
Moderator for the proceeding of the first day of the virtual conference was Milaika Capella Ras, General Manager of the CSA and the Vote of Thanks was delivered by Marc Sampson, Vice President of the CSA.