Caribbean Maritime – issue 43 – Offshore Wind Energy and Shoreside Power

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ISSUE No 43

JUNE - SEPT 2021

OFFSHORE WIND ENERGY REALIZING THE POTENTIAL

SHORESIDE POWER WHAT ARE THE ISSUES?

CYBERSECURITY

A NEVER-ENDING QUEST P R O F I L E : E D U A R D O PA G Á N

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G U YA N A’ S N E W T R A I N I N G I N S T I T U T E

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ROUNDUP NEWS

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Issue No 43 JUNE - SEPT 2021 The official journal of the:

caribbean shipping association

CONTENTS

MISSION STATEMENT To promote and foster the highest quality service to the maritime industry through training development; working with all agencies, groups and other associations for the benefit and development of its members and the peoples of the Caribbean region.

GENERAL COUNCIL 2020-2021 President: Juan Carlos Croston Vice President: Marc Sampson Immediate Past President: David Jean-Marie Group A Chairman: Eduardo Pagán Group A Representative: Yuri Jardine Group A Representative: Sandra Casanova Group A Representative: Nazilia Simone Phillips Group B Chairman: Anibal Ochoa Group B Representative: Mark Williams Group C Chairman: María del Mar Rodríguez Group C Representative: Robert Bosman Group D Chairman: William Brown Group D Representative: Juan Carlos (JC) Barona CSA General Manager: Milaika Capella Ras CSA Secretary: Dionne Mason-Gordon

2 FROM THE CSA PRESIDENT

4 PROFILE: EDUARDO PAGÁN

‘The sky’s the limit’. The Caribbean looks to embrace offshore wind energy

13 ENVIRONMENT

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Shoreside power - should the Caribbean give it a wide berth?

18 CARGOLOGIK FREIGHT FORWARDING

Unlocking loyal customer value

23 BARBADOS PORT INC

Kalmar and Barbados Port Inc. building an eco-efficient future together

26 ATLANTIC VENTURES INC (AVI)

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Publisher:

Guyana’s new training institute takes shape

28 CYBERSECURITY

Dynamics of a never-ending quest

31 ROUNDUP

Land & Marine Publications Ltd 1 Kings Court, Newcomen Way, Severalls Business Park, Colchester Essex, CO4 9RA, United Kingdom Tel: +44 (0)1206 752902 Fax: +44 (0)1206 842958 Email: publishing@landmarine.com www.landmarine.com Views and opinions expressed by writers in this publication are their own and published purely for information and discussion and in the context of freedom of speech. They do not necessarily represent the views and opinions of the Caribbean Shipping Association – The Publisher. ©2021 Land & Marine Publications Ltd.

Driving forward while giving back

9 OFFSHORE WIND ENERGY

Caribbean Shipping Association 4 Fourth Avenue, Newport West PO Box 1050, Kingston CSO, Jamaica Tel: +876 923-3491 Fax: +876 757-1592 Email: csa@cwjamaica.com www.caribbeanshipping.org Advertising: advertising@caribbean-maritime.com

Working closely with others in challenging times

The latest news from around the Caribbean

35 RUSSBROKER CARIBBEAN

MARKET REVIEW

Who thought it was possible?

39 INTEGRATION BY ADVANTUM

13

Enhancing efficiency through System Interface and Integration

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FROM THE CSA PRESIDENT

caribbean shipping association

Working closely with others in challenging times A Juan Carlos Croston President Caribbean Shipping Association

2 Caribbean Maritime | June - September 2021

s I prepare this message, our collective heart goes out to the people of St. Vincent and the Grenadines who are suffering the effects of eruptions from the La Soufrière volcano.

The Caribbean Shipping Association (CSA) is keeping in close touch with our members in that country and applaud them for their heroic efforts in keeping the main ports open and operational. We also commend the cruise lines and their agents in the Eastern Caribbean for offering timely assistance to those most affected. We encourage all our members to assist in the relief efforts.

Disaster preparedness and resiliency planning have been priority areas for the CSA in our annual meetings and training programs, and recent events that include the Covid-19 pandemic, hurricanes and the current volcanic eruption are proving that our emphasis is well-placed.

FREIGHT RATES Globally, freight rates are at an all-time high and compounds the challenges already being faced in our region. Even though global shipping is being impacted in a number of ways by higher-thanexpected volumes, the Caribbean region’s

…And we can now see how the decades of forging friendships and partnerships, coupled with digitalization, are working for the benefit of all is proving to be of immense value in this challenging period.

In this regard, the annual meetings of the CSA continue to play a vital role in building strong bridges for the region’s maritime community and the Caribbean Shipping Executives’ Conference (CSEC) will be staged this year, again virtually, on May 24-25. We anticipate a very productive CSEC as we share experiences and ideas that will be of immense value to all participants.

In this period, the CSA has been very active in strengthening our regional and international partnerships. We are in discussions with organizations such as the Inter-American Development Bank (IADB), the World Bank, CARICOM, the Economic Commission for Latin America and the Caribbean (ECLAC) and the Central American Maritime Transportation Commission (COCATRAM) on behalf of our members and the maritime sector. shipping industry is still struggling with cruise cancellation, economic upheaval from lack of tourists and new waves of infections.

In light of all these challenges, businesses and organizations need to continue finding ways to evolve and enhance services for the new demands of clients/ customers. What we have in our favor is a long history of collaboration and partnerships in our shipping industry. The CSA has facilitated and promoted a strong, wide and deep network of maritime and logistics professionals throughout the Caribbean and Latin America, and this

PROTECTING Our proactive involvement in protecting the Caribbean Sea is continuing in our work with the Caribbean Marine Environment Protection Agency (CARIBMEPA). We are committed to the implementation of the International Convention for the Prevention of Pollution from Ships (MARPOL) that CARIBMEPA promotes for safe, secure, environmentally sound, efficient and sustainable shipping through cooperation.

The CSA places a very high value on the work of the Women in Maritime Caribbean (WiMAC) and our very close working

relationship is indicative of the shared vision of our organizations. Through the joint webinars that we have hosted, and other activities, we have strengthened the call for greater maritime cooperation and coordination in the region, including the enactment in national legislation for IMO/ILO conventions that need to take place as a matter of great urgency.

So, despite the “social distancing” that the pandemic has forced upon us, we have never been closer. Not a day passes that we are not connected and involved in problem-solving across the region and we can now see how the decades of forging friendships and partnerships, coupled with digitalization, are working for the benefit of all.

Yes, this is a pivotal moment in world history, and the CSA has adopted the position of making the challenges we face a catalyst for positive transformation. You will therefore find encouragement in these pages – in the people who continue make our maritime industry the stable center of our region’s economic development.

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PROFILE EDUARDO PAGÁN

EDUARDO PAGÁN:

Driving forward while giving back Born and bred in Puerto Rico, Eduardo Pagán is, perhaps, just the kind of person the shipping industry needs more of. That is a seasoned business executive who has finely honed his skills outside the maritime industry, yet in later life brings some fresh thinking to our industry based upon a font of knowledge and know-how accumulated from elsewhere. TOTE Maritime, a major player in the mainland US-Puerto Rico trade, has been the chief beneficiary of Eduardo’s vast experience but so have very many charities and institutions in the Commonwealth. Here, Eduardo speaks to Caribbean Maritime about his life in business and beyond, and his current role with TOTE Maritime.

Q. Where were you born and where did you grow up?

A. I was born in the centre of the island of Puerto Rico in a mountain town named Barranquitas (little hills). Due to the altitude and low temperatures (average 60°F/15°C) this place was a favourite venue for many European settlers looking for some ‘cool’ weather following the discovery of the island.

Three years after my birth, we relocated to the San Juan metro area.

Q. How big an influence were your parents on your early life?

A. My parents were instrumental in my development. The values and principles they taught me, and particularly my mother’s push to pursue a professional career while making sure I became a good citizen was

4 Caribbean Maritime | June - September 2021

always the aim. My father, as an executive for Ford Motor Company, was a great example and model of business ethics and discipline.

Q. Where did you go to school and then to university? In which subject(s) did you graduate?

A. I went to school in the public educational system, a primary school in the San Juan metro area, and secondary school in a town in the south east of the island. I was admitted to the University of Puerto Rico at the age of 16 years to pursue my degree in industrial engineering (BSIE). At that time it was the only engineering school located in the west side of the island and rated among the top 20 engineering universities in the US. After completing my bachelor’s degree

in engineering, I completed an MBA with a concentration in industrial management.

I did the MBA during night studies since I got a job immediately after completing my degree in engineering.

Q. What was your first job on leaving fulltime education?

A. My first job was as a manufacturing engineer with an electronic manufacturing company (LH Research – headquartered in southern California,) making switcher power supply units in two sites – one in Puerto Rico and the other in Port-au-Prince, Haïti. After one year, I received a generous offer to work for Chesebrough-Ponds (a US Conglomerate, including health and beauty products). Two years later this company was acquired by the UK’s Unilever. I spent 21 great years working for this wonderful corporation.

Q. Before joining TOTE Maritime, you spent time living and working outside the Caribbean. Where did you work, for whom did you work and what did you learn from your various experiences overseas?

A. As mentioned earlier, I worked with Unilever, and after four years, they offered me a job in the UK in charge of its Latin America supply chain sourcing strategy for its Personal Products Division. It was a great two-year assignment that allowed me to see the business in a holistic way, enabling and enriching my general management skills and competencies in all business aspects and disciplines, including sales and marketing which were not derived from my educational background as an engineer.

Upon completion of my assignment, I came back to work in the US, but took upon a sales/marketing senior role for US-made goods destined for Latin America, emerging European and Middle East markets. After Unilever, I joined a medical device manufacturing company as general manager for three years and retired to work on my own consultancy firm.

Q. When did you join TOTE Maritime and why?

A. I joined TOTE Maritime (formerly Sea Star Line) in November 2010 as General Manager and Vice President of the Caribbean based in Puerto Rico with responsibilities for our business in the US Virgin Islands as well as some of the British

These factors were key for me to leave my own business, take full control of my destiny and venture into something very challenging Virgin Islands. The invitation to join TOTE was very appealing for a number of reasons. The company was looking for a native executive, and someone coming from the customer side rather than the tradition of the industry to recruit senior executives within the sector.

No less important was the challenge of leading an organization that was in a very difficult financial situation. These factors were key for me to leave my own business, take full control of my destiny and venture into something very challenging.

Q. TOTE Maritime is part of a larger group so how does it benefit from being in the Saltchuk family of companies?

A. Saltchuk’s creation was pivoted in the acquisition of the TOTE Alaska company (formerly known as Totem Ocean Trailer Express) and eventual growth by mostly buying other transportation companies, including the acquisition of the assets of the former sea barge operations serving the Puerto Rico market. Saltchuk is a values-driven organization that puts safety

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PROFILE EDUARDO PAGÁN

first, takes care of customers and conducts business with a strong commitment in terms of reliability, honesty, and integrity. It’s also highly committed to protect our environment, and to contribute to our communities.

The company’s principle is to reinvest over 80% of its profits in further enhancing its asset base and value-added acquisitions have been a fundamental criterion for the growth, strength, and brand expansion of its companies.

Q. TOTE Maritime operates within the “protection” of the Jones Act (both to and from Puerto Rico and Alaska). The Jones Act has its critics – especially in Puerto Rico. How does TOTE Maritime answer these critics who claim that the Act increases freight rates to and from the continental United States and, as a consequence to the prices Puerto Ricans have to pay for a range of goods?

A. The Jones Act subject had been politicized through decades of misinformation and philosophical arguments that lack any empirical base. Many times, the Jones Act is used as a ‘scapegoat’ by a few detractors and these arguments lack the simplest understanding of the maritime industry costs and of market dynamics.

As a matter of fact, in the container shipping business, many of the cost elements for the carriers are unaffected by flag registry.

Fuel expenses, the cost of loading and unloading containers, trucking and inland transportation expenses, container equipment costs, sales, and administrative expenses, among others, are the same whether it’s a US or foreign-flag vessel.

The principal costs that would be affected, including crew and vessel capital, could come down to less than 10% of the total costs. These costs are completely offset by the other supply chain costs that are gained by customers enjoying a steady/reliable ‘point-to-point’ service such as 98% on-time vessel calls measured within two hours from scheduled (no port calls in between), a 2.5-day transit time, 53 foot containers (42% more cube

6 Caribbean Maritime | June - September 2021

capacity versus 40 foot standard), ‘Best in Class’ control and tracking of reefer containers that are critical for the cool supply chain for perishable goods and bio sciences commodities imported and exported from the island, and port and terminal ‘world class investments’. In times of emergency, Jones Act liners have also proven to be the right solution to deploy additional tonnage needed to service the needs of the island.

The Jones Act delivers a strong positive ‘Just in Time’ case study for an island receiving goods from a distance of 1,500 nautical miles, and that results in great benefits for shippers in many areas such as: lower inventories and spoiled/obsolete goods, lower inventories tax payments, saved warehouse space/utilities/labour, etc…

“The Jones Act has helped to ensure reliable, regular service between the US and Puerto Rico, service that is important to the Puerto Rican Economy” Q. What volume of freight each year does Tote Maritime carry on the Jacksonville-San Juan-Jacksonville route?

A. We are the number one company transporting containers and reefers from US to Puerto Rico.

Q. In addition to Puerto Rico, how does TOTE Maritime serve both St Croix and St Thomas in the USVI and how important is this trade to the company?

A. The USVI are a critical extension of our business service and value proposition to our sister islands. We service with feeders departing from San Juan twice a week into the islands.

Q. TOTE Maritime has proved a pioneering organization, being the first to introduce LNG-powered vessels into the Caribbean and the US. It must have been a difficult decision to make at the time, but six years on from the initial deployment of these Marlin-class vessels, was LNG the right move and at the right time?

A. Without any doubt it was the right move and timing, and one of the cleverest endeavours of our organization. For the record, TOTE Maritime was the first in the world to introduce LNG-powered containerships, not just in the Caribbean region and the US. Being the first involved in a technological breakthrough is normally difficult and for several factors, but the value promise with this change was worth pursuing, and it was done with a high sense of validation in many elements and the build up on redundancy where it could be needed.

Q. Any idea what propulsion TOTE Maritime might use for its next generation of vessels? Is the company happy to stay with LNG or is it too early to say?

A. We are very delighted with the use of LNG as a propulsion. Since the announcement of our Marlin Class Vessels and to date, we pride ourselves in running the most eco-friendly containerships, and testament of that is the significant number of other carriers that have chosen to follow our path in regard to their next tonnage generation.

The evolution of future generation vessels and type of propulsion is something that we will continue to address; taking into consideration the benefits to our ecosystems and the ‘edge’ to be provided to our organization.

Q. You are currently a member of the board of directors, and an immediate past president, of the Puerto Rico Shipping Association (PRSA). What were your main achievements as president and what is your role within the Association now that your term has expired?

We are very proud to support more than 20 organizations around the island, with a significant focus towards youth development and entrepreneurship

A. My biggest mission in leading the PRSA was to gain both private sector and government acknowledgment and respect of the critical contribution of our industry as a lifeline for the people of the island, and the imperative participation in the island’s economic ‘path to growth’ strategy and initiatives. We accomplished critical roles and participation in the island’s recovery efforts from recent natural disasters, pandemic management, future economic development initiatives and more. As a leader of the Transportation Sector (maritime, air, inland) at the Puerto Rico Business Emergency Operations Centre, and as Leader of the Economy Growth Strategic for the post-Covid pandemic in the island, we ensured a great ‘pedestal’ for our industry’s position in our society.

Q. TOTE Maritime was again a major sponsor of the Puerto Rico Open – a PGA Tour golf event held this year in February – and The Players Championship

in Sawgrass, Florida. What’s the strategy behind TOTE Maritime’s golf sponsorship and what value does the company get from these events?

A. Our participation at the PR Open is one of many initiatives in our Corporate Social Responsibility Program. We are very proud to support more than 20 organizations around the island, with a significant focus towards youth development and entrepreneurship.

Among these are: Boys & Girls Club of Puerto Rico, Enactus, Grupo Guayacan, Make-a-Wish Foundation, and PECES. Besides a significant monetary contribution to these organizations, we have a 75%-plus employee participation in assisting many activities in these organizations and many staff members serve on the board of directors, including myself as the President of the Board of Directors for Boys & Girls Club of Puerto Rico.

Q. Outside of work you are known as a keen and widely travelled golfer. If you had

to choose three golf courses to play which would they be?

A. Wow… this is very good question.

Firstly, I would love to play again St. Andrews in Scotland (the last time I played was in 1991), Playa Grande, in Dominican Republic, is a hidden jewel of a course with a good number of holes resembling those at Pebble Beach in California; and lastly Royal Isabela on my own beautiful island.

Q. Finally, can we ask you something about your personal life beyond TOTE Maritime?

What are your main interests outside of work (apart from golf that is)?

A. I really enjoy working with organizations that are involved in youth development.

I’m convinced that supporting them will lead the island to create a new generation of artists (poets, writers, singers, etc..), athletes, professionals, thinkers, and great citizens in general. I follow a tradition of many proud Puerto Ricans who enjoy people excelling in everything they do.

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OFFSHORE WIND ENERGY

‘THE SKY’S THE LIMIT’ The Caribbean looks to embrace offshore wind energy It’s fair to the say that the Caribbean has been extraordinarily slow in taking a serious interest in the offshore wind energy market – especially when compared to some other parts of the world.

By Gary Gimson

T

here’s been plenty of detailed studies into offshore wind energy, endless good intentions about investments but little in the way of any concerted action. But that may be about to change.

As a starting point, these studies acknowledge the current high cost of electricity generation in many Caribbean countries and can see the massive potential of wind and more generally ocean energy, but the difficulty across the region seems to be translating this potential into meaningful projects.

NICHE SECTOR Elsewhere, the offshore wind energy market is proving a useful source of business for both ports and shipowners as it develops into a vibrant niche sector for those with specialized equipment to transport giant turbines, the even more highly specialized vessels needed to install and maintain them as well as those required to create the fixed or floating

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OFFSHORE WIND ENERGY

Aerovista Luchtfotografie | Shutterstock.com

Should this ever take place, the installation of these turbines would translate into a serious level of business for many Caribbean ports

foundations and erect the towers. Brian Sørensen of leading Danish provider of logistics service to the wind energy market, Blue Water Shipping said it was a sector where “the sky’s the limit.”

And looking around the globe, it’s easy to share this enthusiasm. Even so, it’s only comparatively recently, and largely for political reasons and after several false starts, that the US has been any quicker than the Caribbean – only this year unveiling plans to boost the industry - promising vast new acreages, faster permits and billions of dollars in additional financing. Nevertheless, the US still has some catching up to do to match Europe and Asia.

EMBRACED Now that the Biden administration has embraced wind energy – and with the go ahead in May for the first commercial-scale offshore wind farm, ports and special vessel operators are expected to get their fair share of what promises to be a near US$ 90 billion industry. Then there’s a further US$ 2.8 billion a year of on-going maintenance and other related expenditure. Worldwide spending will be some US$ 810 billion by the end of the decade. Furthermore, reports suggest that the total global offshore wind energy installed capacity is likely to top 250 GW by 2030.

10 Caribbean Maritime | June - September 2021

One operator with strong Caribbean credentials and quick into the nascent market is Crowley (in partnership with Danish specialist shipping company ESVAGT), which has formed a new energy division. Elsewhere in the US, operators are lining-up already experienced foreign partners to create Jones Act-compliant tonnage, such as the recent ordering of a wind turbine installation vessel (WTIV) for Global Offshore. But this Jones Act-compliant vessel is not due for delivery until 2023 so there may be a short-term mismatch between political ambitions on the one hand and the actual ability to install the wind turbines. But other big Jones Act WTIV orders are in the offing.

But what about the Caribbean? First of all, let’s face it the Caribbean can be a breezy place and the region’s trade winds have been important to seafarers for hundreds of years.

So is now the time to harness mother nature and provide clean energy to islands that have traditionally struggled with the costs of importing oil.

The potential is certainly there. It’s believed that Latin American and Caribbean energy demand could be satisfied using only 125,000 km 2 (4.5% of the total Caribbean Sea area) of waters shallower than 25 meters at a cost of around US$84/MWh. This is just as well as 77.5% of Caribbean waters

INSTALLATION Should this ever take place, the installation of these turbines would translate into a serious level of business for many Caribbean ports – not just in the initial handling and temporary storage of the giant turbines but also as a base for the construction work and subsequent and ongoing maintenance.

But here’s the really big question. From a purely economic perspective, does the Caribbean need offshore wind (or even industrial-scale solar power) as a major power source when comparatively lowpriced imported LNG might be a better and more reliable alternative? Moreover, is the sight of large turbine arrays just off the coast of Caribbean islands going to have a negative

impact on the tourism sector in many destinations?

For the moment and looking at the construction and completion of significant new LNG terminals and even the flexible delivery of ISO containers to smaller islands, it seems that LNG is winning out.

So far, 11 Caribbean/Latin American nations have imported US LNG. This represents over 20% of all US LNG exports. So LNG has a head start.

And let’s not forget that wind energy has a worrying downside, quite simply: no wind, no power. Added to which, there is an annual hurricane threat and, perhaps, most basic of all: how do pandemic-ravaged economies actually finance investment in offshore wind energy and when already committed to LNG. But where the US leads, the Caribbean often follows and this could indeed be the case with offshore wind now that Washington is pumping billions of dollars into the sector.

ACCOMMODATING NEW VESSEL TYPES If the Caribbean is to embrace offshore wind energy (and, of course, it’s still a big if) then expect to see a various new types of vessels calling at the region’s ports. These can be construction service operation vessels (CSOVs), ecobox vessels built specially to carry turbine blades and with their deckhouses built forward and with one fully box-shaped hold, those specifically designed for loading, transporting, lifting and installing offshore wind turbine foundations, such as the vessel pictured above.

Image: Austal

are deemed unsuitable for wind farms. This would mean a total of 47,760 large turbines being installed using only conventional monopile foundations as opposed to floating foundations.

FOR SALE A 21 Meter Catamaran Wind Farm Vessel built

by Austal Shipyard in 2012 for sale. The vessels is currently located in Trinidad & Tobago and was last drydocked in 2019. But as Kashyap Jagnanan, marine operations manager at Trinidad Mooring & Launch: “The wind farm vessels can support crew transfer operations on most Offshore Platforms in T&T. They a much faster and deliver light cargo as well. These rigs are designed with a V-notch system similar to the Wind Farm installations.

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ENVIRONMENT SHORESIDE POWER

Shoreside power…

should the Caribbean give it a wide berth?

Air pollution generated by emissions and the noise nuisance from ships (especially cruise ships) using their auxiliary generators while alongside is a concern for many ports worldwide. A few of these ports have addressed this twin problem by installing shoreside power, but does it really make sense for the Caribbean to follow suit?

N

obody doubts the long-standing commitment of Caribbean ports in working towards a cleaner and greener environment or that they share the same worries about pollution and noise, but is solving them just too expensive for the region – especially as these problems may eventually remedy themselves?

In fact, the case for doing nothing is strong. While it may be nice to have, shoreside power is eye-wateringly expensive to install and the power delivery required so huge that it’s likely to be beyond the finances and existing electricity generation capacity of many islands. Added to which, both cruise ship and container operators are now opting for LNG-powered engines (and concomitant auxiliary generators) for their latest newbuilds, so will shore-power be a relatively short-lived phenomenon and,

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ENVIRONMENT SHORESIDE POWER

COLD IRONING Shore-to-ship power or alternative maritime power (are different names for the same process. That is, providing shoreside electrical power to a vessel at berth while its main and auxiliary engines are switched off. This was once known as cold-ironing.

Cold ironing permits emergency equipment, refrigeration, cooling, heating, lighting and other equipment to receive continuous electrical power while the ship is in port.

Cold ironing is an old maritime term that was first used in the days of coal-fired ships. At that time and when a ship was alongside there was no need to fire the engines and the iron would, as a consequence, cool down and then become cold and hence cold ironing.

14 Caribbean Maritime | June - September 2021

in North America to install shoreside power.

Seattle and many others followed, but even these ports only offer electrical power at a very limited number of berths.

When in port, cruise ships typically have an energy consumption of around 7-11 MW and, as a result, require a large capacity connection. This requirement is equal to the average electricity consumption of around 40,000 local households over the same period of a vessel’s stay. But when using their auxiliary engines then this form of electricity production is undoubtedly among the most polluting and it's often noisy.

Thankfully and since the introduction of the new low-sulfur diesel rules and with the installation of scrubbers, ships are now less polluting. But scrubbers only reduce emissions of sulfur (SO2) and particles, they do not solve the equally important problems of NOX and CO2 emissions.

As mentioned, the cost of shoreside power is prohibitive. And studies show that all ports have a substantial need for investment support in order to cover installation and running costs. Capital investment costs and then the total electricity price are the main factors when it comes to the business case for shoreside power in ports where electricity charges are relatively low. But in ports where the investment costs and total electricity charges are high (such as most parts of the Caribbean), then it’s thought that a more flexible LNG-power-barge might be a better alternative to a fixed shore installation. But it’s still costly.

EVEN HUSBY

To get a better understanding of shoreside power and to get a first-hand perspective of the pros and cons, Caribbean Maritime spoke to Even Husby, Head of Environment at the Port of Bergen (one of the Europe’s most popular cruise destinations) and an acknowledged expert on the development and provision of shoreside power – especially in regard to cruise ships.

Q. What kind of investment is required by port authorities in order to provide alongside vessels with shoreside power?

A. “The investment costs vary a lot, depending on what is available in terms of grid capacity and power lines, and the size of the port area. In order to answer this question, a more detailed survey of the prospective project is required.

Port of Bergen has built a comprehensible facility for cruise ships with five supply pits serving up to three ships in parallel with a total capacity of 45 megavolt amperes (MVA). The total investment cost is around US$ 14 million. A more modest installation with 16 MVA serving one ship has been established at Port of Kristiansand in Norway. The investment cost for this type of installation is around US$ 4 million.

But European ports need to convert the 50hz frequency in the local grid to the 60hz required by the ships. This step is not necessary in the Caribbean area and represents a cost reduction of up to 50% on the abovementioned estimates.”

Q. Do you foresee these kinds of investments being financed by regional development banks and suchlike?

A. “The capex for a shore power facility represents a major obstacle. In Norway, two public schemes supporting the reduction of climate impact and air pollution, came to the rescue. The Enova climate fund has a special program dedicated to shoreside power development in ports. The NOX-fund is a major sponsor of ship conversion, supporting the development of shore power interfaces as well as other solutions onboard ships. Both schemes are key drivers behind the development of shoreside electricity in Norway.

Nataliya Nazarova |Shutterstock.com

if installed now, will it ultimately become under-used or unused at some point in the future? The answer – at least for the Caribbean – would seem to be yes.

The provision of shoreside power is not new, and its introduction has mostly been led by destinations with city center berths or where there is a powerful environmental lobby. The first high-voltage shore connection was installed in Gothenburg (for ro/ ro vessels) some 20 years ago and this has been followed by others with a particular emphasis on those welcoming cruise ships.

The Alaskan port of Juneau was the first

Port of Bergen, Norway

A Kavotec shoreside power unit

Good performers (e.g. shoreside power users) are rewarded while the “lesser performers” have an increase in fees The EU has also identified shoreside electricity as a priority for the TransEuropean Transport Network (TEN-T) programme. This has been essential for deployment of shore power in several European ports.

I think a regional strategy combined with financial support is a prerequisite for a successful implementation in any region.

Q. On many Caribbean islands and by the very nature of things, locally produced electricity is expensive and not necessarily very environmentally friendly. Do you think that the high price of island electricity will be a barrier to vessels using shore-based power?

A. Based on my impression of energy costs in the Caribbean area, I think the energy price will be a critical barrier. Even

so, I see that if the source of electricity represents an environmental improvement compared with onboard production, the ship owners will show a lot of flexibility.

The total cost of a ship’s port stay will be an important element in this discussion. If there is an opportunity to incentivize users of shoreside power, you may be able to balance the costs. Several Norwegian cruise ports have implemented incentive schemes based on the “polluter pays” principle. Good performers (e.g. shoreside power users) are rewarded while the “lesser performers” have an increase in fees.

Q. What are the environmental benefits of shoreside power; keeping in mind that many Caribbean islands still use far-fromclean primary energy generation?

A. In terms of climate impact, it does not

make sense to replace one carbon-based source with another.

Having said that, I think shoreside power, regardless of source, may be a good solution for removing air pollution and noise from a port. By centralising the power production, a society can control the emission at one location outside the port city rather than dealing with a range of sources in the city. This scenario also makes it easier to introduce a cleaner energy mix if an alternative energy source is made available later.

Q. Do you believe that the cruise shipping industry is on-side with shoreside power (especially if it costs more than auxiliary generators)?

A. I believe the ship owners are dedicated to finding good environmental solutions, and a shoreside power interface is certainly

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ENVIRONMENT SHORESIDE POWER

on the agenda for European cruise ships.

Around 60% of the cruise calls planned for 2022 in Bergen will be ships with a shorepower interface. This is a development which proves that there is a real transformation taking place.

Q. Does the use of low-sulfur fuel/ scrubbers and the comparatively recent introduction of LNG-power for cruiseships (and with more on the way) reduce the environmental case for shoreside power and the need for smaller destinations to invest in such facilities?

A. The advent of LNG-ships will for sure represent a huge improvement regarding air pollution. My thinking is that we should not look at shoreside power as the only means for improvement. If ships are equipped with the best available technology and can prove it is utilised efficiently while at port, this should be recognized as an important contribution.

I stress the word “prove”. A ship may carry technology but chose not to use it.

One of the key projects among Norwegian ports in recent years has been the development of an environmental reporting solution for cruise ships, named Environmental Port Index (EPI). Each time a cruise ship leaves a Norwegian cruise port it delivers an environmental report. This gives ports a valuable insight into the impact of the ship and enables us to establish incentive schemes based on actual data for the port call (www.epiport.org).

Q. On the face of it, the supply of shoreside power may have certain environmental benefits but does it really make any economic sense? It may be OK for a wealthy country such as Norway where the cost may not be a critical factor, but is this the right move for a small island economy and one which probably suffers far worse pollution from various local activities?

A. Maybe not, depending on the business case. The question we should ask is rather: How can a small island economy reduce the environmental impact of the cruise industry?

The discussion in our region revolves around a lot of different topics including more tight regulation of emissions to air and sea, ways

and means of limiting the number of ships and passengers and the size of the ship, priority for the better performers, development of services such as LNG bunkering and sewage reception, and more.

The way ahead should be a coordinated regional strategy which covers funding schemes, incentive schemes, improvement of local energy production, optimization of local fee systems and improved national regulation.

Q. What lessons can others learn from what the Port of Bergen has done in terms of its plans for shoreside power?

A. A successful implementation depends a lot on how the project is organised. The development of shoreside power in Bergen is built around a partnership between the port and the regional power production company BKK. A joint company, Plug Bergen (www.plugport.no), owns and develops the solution. This approach gives a close link to

the strategy of the overall energy production system in the region and it brings relevant competence into the planning and operation of the facility.

Air Pollution Arabelle Bentley, executive secretary of the Shetland Islands-based Kommunernes International Miljøorganisation (KIMO) or Local Authorities International Environmental Organization, told Caribbean Maritime: “When using auxiliary power in port, vessels generate air pollution and noise emissions that affect the health of both the ship’s crew and people working and living near the port. These effects can be significant and scientific research has shown that longterm exposure to particulate matter and nitrogen oxides (NOX) have a significant effect on human health.”

PORTMIAMI SHORE POWER PROGRAM

Miami-Dade County and Carnival Cruise Line have together launched a new shore power pilot program at PortMiami in an effort to reduce in-harbor emissions. At the same time, the CEOs of Carnival Cruise Lines, Disney Cruise Line, MSC Cruises, Norwegian Cruise Lines, and Virgin Voyages, Royal Caribbean have announced they support efforts to bring shore power to PortMiami.

The US Environmental Protection Agency (EPA) has allocated US$2 million for the PortMiami and Carnival shore power program at the new Cruise Terminal F starting in 2023. This marks the first step in making shore power a reality for cruise ships at Port Miami.

But if the world’s biggest and busiest cruise port is only just starting to implement and install shoreside power, what hope for small Caribbean island destinations?

www.caribbean-maritime.com 17

CARGOLOGIK FREIGHT FORWARDING

Unlocking loyal customer value Caribbean Maritime looks at the latest software available from digital startup Cargologik – a modern SaaS platform built for smallto-medium international freight forwarders and brokers

By Miles J. Varghese

I

f you’re an independent freight forwarder, you’re already facing unprecedented challenges. Margins are under pressure. Supply chains are in flux. Clients want more and more. They point to DHL tracking technology, Amazon logistics timelines, and demand “Two-day shipping”.

Competition is picking up among those especially in the same trade lanes. The big forwarders and liner operators are building their own small business platforms and taking direct bookings - thereby nudging their traditional partners to the side.

The carriers themselves are getting back into logistics through acquisitions and heavy investments into technology.

VC-backed, digital freight forwarding service providers like Flexport and freight marketplaces exist on a global scale.

And, did I forget to mention a global pandemic, port congestion, shifting to work from home - all while operating out of the Caribbean?

It’s a daunting and dire landscape and path ahead for the independent forwarder and broker. It’s a global challenge. At Cargologik, we know this because we’ve spoken to 600+ independent players from around the globe and have just south of 200 logistics companies on our platform.

OPPORTUNITIES But for every challenge presented is the opportunity for the organization to

18 Caribbean Maritime | June - September 2021

level-up, to face down each challenge, and become more agile is also there. This is a universal truth, and what separates the good, differentiated, from the great.

And for those that can persist and make it through, a more promising, green pasture awaits just on the other side. That is, if organizations are willing to accept and make the changes incumbent upon them now to counteract these market and competitive forces at play.

So how can small-to-medium sized, independent freight forwarders and logistics service providers (LSP) make it through to the other side?

Well, by simply communicating and

collaborating better. It certainly sounds simple in principle, but in practice not so much. It does not refer to WhatsApp messages back and forth, the hundreds of emails, and all of the texts required between all parties when coordinating freight movements.

Being responsive and offering great customer service is one thing, but that’s also the thing that everyone does. To

succeed in this highly-competitive, supply-chain landscape, the freight forwarder must step beyond great service and must save their customer time, money, and drive revenue. All companies today know that the success of their business is that of their customers. Impact them in meaningful ways, regularly, and become the trusted advisor.

FREIGHT COLLABORATION AND COMMUNICATION If you can combine your logistics expertise with the right tools, you can become that trusted advisor that the shipper picks first, every time. Keep up with the Amazon effect and win their referrals, and retain more loyal customers than ever before.

Loyalty drives revenue, profitability, reduces costs, and also simplifies operational focus. Things just become easier

when you have more loyal customers.

So, what’s an easy, first step to transform your organization into a more differentiated, profitable one that has clients driving your word-of-mouth referrals to new levels?

Consider embracing technology and tools that add structure to your organization’s commercial departments and even across offices. Empower the most important asset you have - your people. Give that team valuable reporting and trade analytics data, automated operational alerts, better tools for document management, and other commercial intelligence at the account and organizational level.

Do so in a way that creates tremendous value for the customer while also meeting their ever-growing expectations. Pick the right systems for your own business. Find the right providers that will not only arm you with technology to do the above, but also a software provider who keeps your software up-to-date. Most importantly, a provider whose software is ever-evolving and actually improving with your client base and as you scale the company.

This is no small feat, but advances in web-based technology and the Amazon effect have created brand new opportunities, even with the smallest of players – who also may be feeling “island-bound”.

My co-founder, Luis F. Trujillo Jr., who grew up as third generation in his shipping family’s holding company, Grupo Holco based out of Guayaquil, Ecuador. His grandfather was a pioneer and early agent for APL and Evergreen and his father still an active executive and investor in Cargologik. We’re still a family-run business and Cargologik is the freight forwarding platform that we built starting within an international freight forwarding company named Logunsa in Guayaquil.

From there we’ve scaled a little bit, and what we quickly found was that the international needs that they had could be extended globally and we’re proud to say we have a global presence and configurable platform that works across 140+ different countries around the globe.

The idea is to enable you to leverage your existing team to do more with less, and arming them with superpowers to manage more than just a handful of clients on their head, in excel, on paper, or in dated systems. And you can do so, while creating a differentiated experience for the customer that exceeds their expectations.

Win their loyalty and drive business with them and more loyal customers in the longer-term.

I look forward to working with more of my Caribbean compatriots and colleagues as we continue Cargologik’s global expansion around the world.

Feel free to try it out yourself for free too, we’re a modern, freemium, saasplatform meaning that your first 10 shipments are 100% free with no credit card required at all. We want you and your clients to experience the platform before you take the no-contract, month-tomonth dip into warm Cargologik waters.

www.caribbean-maritime.com 19

SeregaSibTravel | Shutterstock.com

BARBADOS PORT INC

Barbados Port Inc and Kalmar

Building an eco-efficient future together B

arbados Port Inc (BPI) and Kalmar have enjoyed a long and extremely fruitful collaboration.

For most of his career at Barbados Port Inc, Divisional Manager, Operations, Ian Stewart, has worked with Kalmar equipment. BPI most recently welcomed a suite of new machines to its fleet, including two latest-generation hybridstraddle carriers.

The Port of Bridgetown, managed by Barbados Port Inc (BPI), is a full-service

seaport and its marine terminal handles all major categories of cargo including containers; liquid, dry and break bulk; and vehicles. About 95% of the goods consumed on the island pass through the port.

“Passion is at the heart of everything we do; it drives the team forward and inspires us to provide top-notch service to our customers,” Stewart says.

“Our strategic location, coupled with our focus on efficiency, reliability and

exemplary customer service positions allow us to be the focal point in the region, and we have won numerous Port of the Year awards from the Caribbean Shipping Association, to prove it. He adds: “Of course, our stateof-the-art equipment plays a vital role in our continuing success. I have known Kalmar since my time as an apprentice mechanic, so I’ve been working with their machines for more than three decades.”

www.caribbean-maritime.com 23

BARBADOS PORT INC

RISING TO THE CHALLENGE Although the Covid-19 pandemic has had a huge impact on the maritime industry, Stewart is keen to emphasize that he and his team saw a lot of positives too.

“Timescales were thrown up in the air, and most of our medium-to-long-term plans quickly became critical issues that needed more immediate attention,” he highlights.

“We’ve implemented several new digital systems to enable us to provide excellent service to customers even when they can’t physically come to the port.

Regardless of Covid, our drivers remain the same: we are customer-focused first and foremost. Our vision is to be the most innovative, green maritime hub in the world by 2030. In order to reach this ambitious target, we need to reduce our carbon footprint, which means using hybrid or fully electric equipment, adopting innovative processes and automation and looking closely at our efficiencies and how to optimize our operations in different areas.” Stewart sums up in simple terms why his organization has relied on Kalmar equipment and services for such a long time: “It’s about value for money. We look to procure equipment that is cutting edge, has synergy with our brand and strategic direction, and which is backed up by solid support from the manufacturer.”

KALMAR – THE HEART OF THE FLEET The first Kalmar straddle carrier arrived at the Port of Bridgetown in 1985, and the fleet now has nine of them. “That first machine is still in great working order after 36 years,” Stewart says. At the close of 2020, the Port’s equipment fleet was expanded to include two Kalmar hybrid straddle carriers and four fully electric forklifts as part of a capital investment program to modernize and enhance competitiveness and enable more ecoefficient operations.

“Whenever we make new investments, we are looking to add value to our business. With Kalmar we look beyond the

24 Caribbean Maritime | June - September 2021

price tag – we have chosen to continue with them based on the excellent quality of their solutions,” highlights Stewart.

“We need a supplier who is easy to communicate with and who has invested in services, particularly parts and the associated logistics services given where we are in the world.”

To future-proof their operations, all the new Kalmar straddle carriers purchased

by BPI are automation ready and the organization is investigating how best to take advantage of Kalmar's digital service offering – for example as part of

The cab is a comfortable, quiet working environment, the machines have excellent speed and agility, and their reliability is much higher than comparable diesel hydraulic machines

the environment. I hear plenty of positive feedback particularly about how quiet the machines are.”

Johnny Medrandra, Sales Manager, Central America & Caribbean, concurs: “Switching to hybrid straddles slashes fuel costs, a key factor in a market like Barbados where fuel is expensive to import from overseas. It can also transform a terminal’s sustainability performance, saving up to 50 tonnes of CO2 emissions per machine per year.”

He adds: “Our electric forklifts provide the same level of performance as powerful diesel machines but without the emissions, noise or vibration. ”They include a time-saving diagnostic system and our fully adjustable, ergonomic EGO cabin. We’re proud to be able to say that they are the first electrically powered forklift trucks we have delivered to a container terminal in the Caribbean or Latin America.

We’ve built an excellent relationship with Ian Stewart and his team, and our service experts are always available to support the port with any issues that may arise.”

A BRIGHT FUTURE LIES AHEAD

its terminal operating system – to help optimize equipment usage.

ELECTRIFYING PERFORMANCE “The Kalmar electric forklifts have helped our drivers immensely. The cab is a comfortable, quiet working environment, the machines have excellent speed and agility, and their reliability is much higher than comparable diesel hydraulic machines,” explains Stewart. “And of course, they reduce our operating costs by eliminating fuel costs.”The forklifts will be used in break-bulk operations to handle cargo such as steel, cement and lumber.

As for the new Kalmar hybrid straddle carriers, many of the same advantages apply, according to Stewart: “The straddles are comfortable, agile, and far friendlier to

Digital innovations and innovative add-ons for systems and equipment will have an important role to play in the future of Barbados Port – a future in which Kalmar is set to feature heavily.

“We are very interested in seeing how the latest cutting-edge digital innovations from Kalmar can help us to fine-tune and optimize our operations moving forward, in terms of both our Kalmar and non-Kalmar equipment. The next big steps will be beginning our automation journey with Kalmar’s help and integrating all our equipment into our terminal operating system. This integration will give us a real-time overview of key parameters like fuel consumption, equipment status, driver performance, and so on. This is the future for our terminal, and we are ready to take our first steps into that future with Kalmar,” Stewart concludes.

www.caribbean-maritime.com 25

GUYANA ATLANTIC VENTURES INC (AVI)

Guyana’s new training

INSTITUTE TAKES SHAPE The Caribbean’s first dedicated Marine & Offshore Training Institute is being built at East Bank Demerara in Guyana and will open in 2021.

A

tlantic Ventures Inc (AVI), a wholly Guyanese-owned company with experience in both the mining and marine industries, has teamed up with India’s Alexarya Corporation International, a leading investment and development corporation, to build and manage the new Institute. This joint venture, AtlanticAlexarya Maritime Development Guyana Inc (AAMDG), is not just building the new Institute but also plans to invest elsewhere in Guyana’s fast-growing and previously under-developed maritime sector.

The Institute will be a technical school, teaching practical skills to would-be seafarers in order to meet the highest professional standards required in the

ever-changing and always-demanding shipping industry. AAMDG’s Prof (Capt) Suniel Kumar has successfully established similar marine academies in Singapore, Sri Lanka, Dubai and India.

PROGRAMS The three main academic curricula offered to applicants at the Institute are the Pre-Sea Training, Officers Training and Post-Sea Training. Other basic safety training programs will also be offered. A residential facility is available within the premises of the Institute. This facility is compulsory for Diploma/Pre-Sea Training Cadets before going on board training ships. The ages for those interested in registering for the institute are between

16-37 years old and open to Guyanese nationals and those from around the Caribbean.

Upon completion, graduates will be awarded with accredited certificates that

COMMITMENT MILESTONE AAMDG has met with the CEO of Guyana’s GoInvest, Dr Peter Ramsaroop, ministers of Public Infrastructure Hon. Juan Edghill and Hon. Indar Deodat, and Stephen Thomas, the Director General of the Maritime Administration Department, all of whom have committed themselves to working together with the joint venture company towards the successful development of these various projects.

26 Caribbean Maritime | June - September 2021

Graduates will be awarded with accredited certificates that will prepare them for careers both on and off shore as seamen, chief officers, captains, or any other jobs in the marine industry

CBR CERTIFICATION

will prepare them for careers both on and off shore as seamen, chief officers, captains, or any other jobs in the marine industry – both locally and internationally.

The administrative team, under the direct management of AVI’s Vice President Nicola Whittaker, has already set up secretariat and admissions offices. An awareness campaign has been launched to educate the public on this new development, which in many ways will revolutionize the marine industry in Guyana and the wider the Caribbean.

SCHOLARSHIPS AAMDG is committed to developing and providing opportunities to Guyanese nationals in support of the government’s agenda to promote local content. As such, the Institute is offering a total of

100 scholarships to be given to young Guyanese interested in pursuing careers in the marine and offshore industry sectors.

PLANNED PROJECTS The Institute is just one of several planned projects for AAMDG, and the joint-venture expects to invest over US$ 35 million locally within the next five years in maritime-related sectors.

In particular, AAMDG aims to construct a new shipbuilding and ship repair yard in Guyana; although details of this project remain sketchy. The tourism sector will also benefit from the company’s significant investment in river cruising and the installation of floating hotels in local waters as well as promoting the Guyanese ship register.

The Atlantic Ventures Inc (AVI), represented by Miranda Thakur-Deen and Asif Hamid, is among the very few companies in the Region with ISO 44001:2017 Collaborative Business Relationship (CBR) certification which specifically addresses collaborations between foreign and local companies.

AVI is also ISO 9001:2015 Quality Assurance Control (QMS) certified and ISO 45001:2018 Health, Safety and Management (OHSMS) certified.

NEW FERRY Economic ties between Guyana and India were further strengthened in January when the Ministry of Public Works ordered a new 1,700 tonne ferry from Kolkata’s Garden Reach Shipbuilders & Engineers in a deal valued at US$ 12.7 million. Once delivered, the ferry will operate on the Corentyne River from Moleson Creek in Guyana to South Drain in Suriname.

www.caribbean-maritime.com 27

MARITIME CYBERSECURITY

Cybersecurity:

DYNAMICS OF A NEVER-ENDING QUEST T

he quest for making computer systems of the maritime industry – and all they control – secure against illicit and dangerous intrusions is neverending. This is the case because human ingenuity is diligently at work in a game of strategy and deception, where the payoffs can be in the billions of dollars – as illicit gain or loss avoidance.

In the movie, “Catch Me If You Can”, starring Leonardo DiCaprio and Tom Hanks, you will recall the extraordinary ability of Frank Abagnale Jr, the real-life man DiCaprio portrays, to impersonate and deceive supposed peers, ranging from doctors to airline pilots.

Abagnale, now a security consultant, makes two key observations: First, technology has actually facilitated the perpetration of fraudulent schemes. Second, all cybercrimes are enabled by someone who did something wrong, or failed to do something he or she should have done.

FOCUSED While not specifically focused on maritime sector, the National Cyber Security Index (NCSI) is a reasonable gauge of cybersecurity status among island nations in the Caribbean. It is useful to get an indication of where the region stands relative to other countries in the world, particularly island nations. See graph on the opposite page.

Eight countries in the Caribbean Basin are depicted in the graph, showing their

28 Caribbean Maritime | June - September 2021

Stephen Metzger

PhD

Economist, and Adjunct Professor of Maritime Economics, Fordham University

respective indices of cybersecurity, digital development and rank among the 160 countries for which data is collected. The region has an average rank of 127 (the higher the ranking the lower are the cybersecurity capabilities) out of the aforementioned total of 160 countries in the index. A selection of other small island economies, including Singapore, Iceland, and Cyprus had a much lower average score of 49.

The data illustrated clearly suggests the need to raise cybersecurity capabilities of the region.

Cybersecurity proceeds at two levels: The individual business or public entity, a micro perspective and a collective, or macro, effort aimed at promulgating and enforcing community-wide protocols.

Employee (and public) awareness of potential breaches of security is critical for developing effective systems of cybersecurity. Abagnale’s admonition cited above is mirrored in the words of Cynthia Hudson, CEO, and her team at HudsonAnalytix, a cybersecurity consultancy, based in Cherry Hill, New Jersey: “Awareness is the first step,” she stresses. “Without an awareness of the threat and the extent of it, there is little incentive to investment in cybersecurity – and what is invested will have little impact.”

The second step Hudson notes is the need for an assessment. Because cyber threats adapt and evolve, a cybersecurity protocol must be based on an ongoing assessment. An assessment implemented five years ago, is unlikely to stand the test of sophisticated hackers of today.

THIRD STEP “Education and training provide the third step of building an effective cybersecurity system,” Hudson emphasized. Team member Marc Smith, Chief Operations Officer, adds, “Almost all breaches of security start with an unguarded response to a seemingly innocuous, routine inquiry from a hacker.”

Andrew Baskin, Vice President and General Counsel at HudsonAnalytix, cites the example, all too common, that once a hacker becomes part of the network of contacts within the company data base, the hacker can at an opportune time submit a fake invoice that is errantly processed by accounts payable.

After the first three steps in building the firewall, implementation is a combination of using the investment in human capital and the requisite software, to activate the system. Importantly, the full system is composed of both the investment in human capital and physical capital (the software and hardware). The one will not work well without the other.

It is axiomatic that cyber threats need a collective, or macro response—companies, agencies, and governments working

A cybersecurity protocol must be based on an ongoing assessment. An assessment implemented five years ago is unlikely to stand the test of sophisticated hackers of today together to coordinate their cybersecurity efforts. In this regard, I interviewed Juan Carlos Croston, President of the Caribbean Shipping Association (CSA) to draw upon his perspective as its chief executive.

Croston notes there is yet insufficient incentive within the industry for companies, ports, and government agencies to coordinate their cybersecurity efforts. The issue is often one of reluctance to divulge proprietary or competitive information.

Further, entities within the industry may be hesitant to make significant changes to their IT system, fearing a major disruption of the system.

“Although these obstacles can be overcome, a foundational system of cybersecurity has yet to be put in place – one that is sustainable over the long term and is permanent in structure and platform attributes,” Croston concludes.

The CSA has a major role in two areas,

education and advocacy, both of which come into play with the cost of investment in cybersecurity – particularly given the Covid-19 crisis. Croston explains, however, that, “Initial investments in cybersecurity don’t need to be, and shouldn’t be, in expensive technologies. Addressing personnel and processes are the first priority.”

INSURABLE Croston discussed the possibility of cybersecurity insurance. He notes, however, this requires “insurable” organizations that have achieved a level of cybersecurity maturity, at which point insurance companies will offer such services.

Collective security starts with individual efforts at the micro level, guided by the comprehensive perspective of macro level (i.e., inherently collective) organizations, such as the CSA and its broadly-based membership.

www.caribbean-maritime.com 29

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The latest news from around the Caribbean

ANTIGUA & BARBUDA

Following completion of its US$ 30 million fifth cruise berth, Antigua Cruise Port confirms that a number of cruise operators have chosen to homeport from St John’s, including Crystal Cruises and P&O Cruises and it seems there are more to come.

Antigua Cruise Port’s Dona RegisProsper told Caribbean Maritime: “Antigua has garnered significant interest as a homeport and we continue to work with several cruise companies who are seeking additional or new homeports in the Caribbean.”

And in the quest to attract further homeporting vessels, ACP is maximising its position as part of

2

ACMF

The American Caribbean Maritime Foundation (ACMF) has appointed Capt Rawle Baddaloo, Past President and Honorary Member of both the Shipping Association of Trinidad & Tobago and the Caribbean Shipping Association, and Co-Leader Caribbean Marine Environment Protection Association (CARIBMEPA), to its Board of Directors.

Capt Baddaloo is one of three recent key appointments to the ACMF board. The other two are Jennifer Nugent-Hill, Director of Government & Community Affairs at Tropical Shipping, and Emerson Alleyne, Executive Vice President of the Shipping Association of Barbados.

As a non-profit 501(c)3 tax-exempt organization, the ACMF provides full-tuition scholarships and grants to Caribbean nationals planning to

Turkey’s Global Port Holdings to win business. Says Regis-Prosper: “In all of our partner destinations, our mission remains the same, we focus on sustainable development of the sector and support the welfare of the local community. Our ability to deliver on infrastructural developments coupled with our strong relations with cruise lines helps us support successful negotiations such as homeporting.”

efficient passenger movement.

We are currently developing the upland area adjacent to the fifth cruise pier with the complementary passenger services customized for homeporting.”

The Antigua & Barbuda government has also been proactive. As RegisProsper explains: “Antigua was the first to reopen its airport in the Caribbean after the initial lockdown.

The government has done as excellent job of creating balance and affording stakeholders the opportunity to do business during a pandemic by having workable protocols that ensure the protection of lives but also facilitates the preservation of livelihoods.”

The new berth is clearly helping: “Antigua can now accommodate the world’s largest vessels and has a total of five berths, this provides overall increased capacity as a cruise port and can better facilitate

work in the maritime industry, and who qualify to attend any one of ACMF’s three academic partners – the Caribbean Maritime University in Jamaica; Nassau’s LJM Maritime Academy; and the University of Trinidad & Tobago.

3

The Puerto de Cartagena Group will host the XXIX Latin American Congress of Ports. The event is scheduled from 29 November to 1 December and will be held at the Hilton Cartagena Hotel & Resort.

The foundation also funds equipment, facilities, and infrastructure. Capt Baddaloo said: “There is no more important work to me at this time than to support the next generation of Caribbean mariners, and I am delighted to be chosen to help deliver on the ACMF’s mission to ‘alleviate poverty and transform lives in the Caribbean through maritime education and community development.’”

ACMF board member and major donor, Roland Malins-Smith added: “The ACMF is privileged to have on its team these three appointees who represent decades of experience in the sector and a commitment to our kids.”

COLOMBIA

Every year, more than 400 port leaders and international experts gather for this event. The Congress comprises three days of technical sessions. In addition to this, the Congress provides intense social and networking opportunities and a technical port visit.

Galina Savina / Shutterstock.com

1

ROUNDUP

www.caribbean-maritime.com 31

ROUND UP The latest news from around the Caribbean

4

CROWLEY

7

Manzanillo International Terminal

5

The Port of Palm Beach has requested consulting firms to qualify for the preparation of a masterplan for the development of the port over the next 10-15 years.

Alfredo Maiquez | Shutterstock.com

Crowley Maritime has increased its weekly cargo carrying capacity in the Central America southern zone by 25%. This change provides more space for loads booked northbound or southbound between Jacksonville or Port Everglades, and Moín, Costa Rica or Manzanillo International Terminal, Panama. Capacity is nearly 1,300 TEUs each week.

COSTA RICA

Spain’s Grupo Pérez y Cía has acquired Costa Rican logistics firm SPC. This acquisition not only confirms and strengthens Pérez y Cía's leadership as a “maritime agent in regular line and tramp” and “specialist in chartering and project cargo” in the region, but also, it boosts the Group’s international growth by adding to the expansion of MPG Logistics, a freight forwarder firm of the Group,

6

FLORIDA

CURAÇAO

The Curaçao Ports Authority (CPA) is to build a new multi-purpose facility alongside its Motet Wharf, offering repurposed space for warehousing, manufacturing, and distribution within the St Anna Bay area.

The 770 square meter facility is available as one single unit or divided into three individual units. Prospective tenants will have the ability to adapt the facility to their own specification and in consultation with the CPA.

32 Caribbean Maritime | June - September 2021

Meanwhile, the US Army Corps of Engineers has allocated around $6.3 million for dredging of the Lake Worth Inlet and the settling basins.

The dredging operation, set for late 2021, will include beach restoration for the town of Palm Beach.

And more good news as later this year port tenant Cemex seeks to reopen its disused cement terminal, which has stood idle for the past 13 years.

with presence in North America and Europe and from last year in China.

With this new acquisition, Pérez y Cía continues to expand its presence in Latin America and the Caribbean with its own offices in Puerto Rico, the Dominican Republic, Jamaica, Trinidad and Tobago, Aruba, Curaçao, Panama, Colombia, and now Costa Rica.

The new director for Pérez y Cía in Costa Rica is Christian Ruiz Sarria, the SPC Group founder.

The Motet Wharf currently serves as a bunkering location and as an alternative cruise terminal and will continue to do so once this project is complete, CPA business development manager Sem Ayoubi told Caribbean Maritime.

It is located on the west side of St Anna Bay, has a length of 190 meters and offers 24-hour security.

The CPA says the newly established facility will be attractive for maritime companies that would benefit from a quayside location.

8

FLORIDA

JAX LNG and TOTE Services recently completed their first ship-to-ship liquefied natural gas (LNG) bunkering of a foreign-flagged vessel at the Jacksonville Port Authority (JAXPORT). Crews loaded 1,800 m3 (450,000 gallons) of LNG from North America’s first LNG bunker barge, the Clean Jacksonville, to the LNG-powered vehicle carrier, Siem Confucius, at JAXPORT’s Blount Island Marine Terminal.

In preparation for the bunkering, JAX LNG worked closely with TOTE Services to utilize the Clean Jacksonville while also gaining acceptance from the US Coast Guard to perform the bunkering during all potential cargo loading conditions. After loading at the JAX LNG facility, the Clean Jacksonville manoeuvred alongside Siem Confucius to perform the milestone transfer.

The 7,500-car-capacity Siem Confucius and its sister ship, Siem Aristotle, are Liberian-Registered and regularly call JAXPORT. TOTE Services operates the Clean Jacksonville and has successfully performed more than 150 bunkering events for TOTE’s Marlin class vessels, the world’s first LNGpowered container ships.

“This commercial bunkering is a major milestone for TOTE Services and a significant step toward supporting clean fuelled vessels operating around the world,” said TOTE Services President Jeff Dixon.

“Some of the world’s most ecofriendly ships call JAXPORT thanks to the innovation and vision of our customers and port partners,” said JAXPORT CEO Eric Green.

“Jacksonville is a global leader in the use of LNG and we are proud to support the continued growth of LNG in the maritime industry and beyond.”

9

GUYANA

Two additional drill ships – Noble Sam Croft and Stena DrillMAX – were added to the ExxonMobil fleet, bringing the total to six operating in offshore Guyana. These vessels along with the Liza Destiny FPSO require regular supplies and support services which has led to growing demand for shore base facilities.

The largest such facility operated

by Guyana Shore Base Inc (GYSBI) (see CM 42) – is the primary location in terms of supplying the drill ships and the offshore oil exploration and production. As a result, GYSBI is set to extend and expand its operations. This will involve extending the base southwards on the Demerara River.

These plans are in addition to the construction of two additional heavy-duty berths currently underway And it doesn’t stop there as ExxonMobil Guyana is looking for even more shore base capacity and seeks to identify contractors who can provide a fully functional, fit-for-purpose shore base located in Guyana starting in 2023.

10

GUYANA

Andrew Astwood, the managing director of the state-owned Guyana National Shipping Corp (GNSC), has announced his retirement from the company after 42 years of service, the last 15 years of which were as managing director. His retirement took effect mid-May. Indranauth Haralsingh, the company’s marketing manager, has been placed in temporary charge of GNSC and until a decision is made about Mr Astwood’s permanent replacement.

11

JAMAICA

The Port Authority of Jamaica is transforming and developing land adjacent to the Kingston Container Terminal (KCT) into a “Near Port Logistics Center”. The plan is to concentrate international logistics around the transshipment terminal in Kingston.

A 18,500 square meter logistics facility has been built to international logistics specifications on a section of land immediately alongside the main entrance to KCT. Given the centrality of security to the development of transshipment and logistics in Kingston, the PAJ has also constructed a state-of-the-art

12

security complex with its own container inspection facilities housing the Jamaica Customs Agency’s Contraband Enforcement Team and the US Container Security Initiative.

Completion for external works was expected May. On completion of this phase of the development known as the Kingston Logistics Park, attention will switch to the development of land between the western perimeter of the terminal and the Causeway. Both buildings have been constructed at a cost of US$16.7M and expected completion of external works is May 2021.

JAMAICA

Kingston’s Jamaica Producers Group (JP) and Antwerp-based Seatrade Group have joined forces to buy Geest Line in what amounts to a 50:50 deal for the UK reefer specialist.

Geest Line has served the Caribbean and Latin America markets from Europe for over 65 years. Geest Line sees this acquisition as a positive development as both JP and Seatrade have strong track records in the trade and the regions served by the company and know the trade well.

Geest Line will continue to operate independently in serving its existing customers and markets while looking for additional trade opportunities.

Seatrade is a worldwide leader in reefer vessel shipping services and its 50% will be held via Sealines Holding NV. JP, meanwhile, is a publicly listed company with interests in Caribbean logistics services, terminal operations, speciality food and drink production and agribusiness. JP owns and operates the market-leading fresh juice manufacturer, supplying the Netherlands, Belgium,

Scandinavia and other markets in northern Europe. JP Group operates a Jamaica- based bakery that supplies Tortuga Rum Cake to over 15 countries. JP Snacks a subsidiary of JP is a leading regional producer of tropical snack foods. JP also owns JP Farms, Jamaica’s leading banana producer.

President of Seatrade Yntze Buitenwerf and Jeffrey Hall, CEO of JP, said in a joint statement: “Geest Line is a company with a rich history of delivering excellent service to its customers on both sides of the Atlantic. We look forward to working alongside Capt Peter Dixon, Geest Line Managing Director, and his highly professional team in the UK as we continue this legacy and support Geest’s next stage of growth.”

Speaking from a JP perspective, Jeffrey Hall says: “This acquisition is a key component of JP’s strategy to continue to strengthen and expand its investment portfolio in Caribbean logistics and infrastructure.”

www.caribbean-maritime.com 33

ROUND UP The latest news from around the Caribbean

13

PANAMA

Svitzer Americas has relocated its regional headquarters from Miami to Panama. The tug company has moved into new offices at the Panama Design Center and alongside other Maersk-group operations.

Svitzer says Panama is an important, strategic maritime hub with good infrastructure and easy connections to nearby countries and ports so moving the regional headquarter to Panama will bring operations even closer to customers in the region, strengthens Svitzer’s regional presence and supports its growth ambitions.

PUERTO RICO

TRINIDAD & TOBAGO

15

16

Jacksonville-based Trailer Bridge Inc has a signed a 20-year lease agreement with Puerto Rico Ports Authority for use of the Old Army Terminal in Guaynabo. The new deal confirms Trailer Bridge’s continued commitment to Puerto Rico and in providing weekly sailings with its ocean-going deckbarge system between Jacksonville and San Juan supports its growth ambitions.

Trinidad & Tobago Inter-island Transportation Co has taken delivery of new fast ferry for its service between Port of Spain and Scarborough. The Australian-built, 100-meter length, Buccoo Reef has an operational speed of 40 knots and can carry 995 passengers and crew as well as 182 cars plus 175 lane meters of truck space.

The Buccoo Reef is the second of two new catamarans ordered by the Trinidad & Tobago’s National Infrastructural Development Co (NIDCO) for the ferry service.

The first was built in Vietnam and delivered in November last year. These two catamarans have replaced three older units.

San Juan

14

PANAMA

AISTER, of Vigo in Spain, has built two units for the recovery of possible oil spills in the Panama Canal outfitted with LAMOR equipment, large deck-loading capacity and a layout designed to provide superior crew comfort.

The two Oil Spill Response Vessels (OSRV) for the Panama Canal Authority (PCA) will be part of its protocol of action, intervention and response to possible accidents and spills in the canal area. This construction is the result of collaboration with the PCA, Finnish oil-spill response and waste management

Oil spill recovery vessel

34 Caribbean Maritime | June - September 2021

SINT MAARTEN

17 specialist Lamor and Canada’s Altum Engineering; giving rise to two unique vessels, of specific and optimized design, of high quality and reliability.

The Oil Spill Response Vessels (OSRV) are 12.5 m LOA and 4.2 m BOA. These boats are designed to provide a rapid response to emergencies, with immediate enlistment. Moreover, these OSRVs are ideal for working in port spaces given their size and equipment.

The Lamor Bow Collector is a skimmer that can be fitted to the bow of most small vessels for the efficient recovery of oil. It's a very popular addition to a lot of vessels and especially popular in harbors, ports and canal environments. It's not a permanent fixture to the vessels so it can be easily fitted in 15 mins when required, leaving the vessel free to go about its normal business when there is no need for a skimmer.

Freight forwarder CIRExpress has opened a new branch in the Netherlands. The address of the new office is: De Veldoven 12, 3342 GR Hendrik-Ido-Ambacht, Netherlands Established since 2006, CIRExpress is based in Sint Maarten (SXM) but offers worldwide freight solutions.

THE BAHAMAS

18

Alan Dixon has been appointed CEO of Freeport Container Port Ltd, Freeport Harbour Co Ltd and The Grand Bahama Airport Co Ltd. Dixon was previously with Port of Felixstowe in the UK and at Hong Kong International Terminals Ltd.

RUSSBROKER CARIBBEAN MARKET REVIEW

Image: Luz Zuluaga Photography | Shutterstock.com

WHO THOUGHT IT WAS POSSIBLE?

CONTAINER MARKET The container charter market has in 2021 so far only known one direction and that was up. Regardless of the vessels’ size, owners have been able to command higher rates with every fixture and absolute levels are closing in on all-time high figures last seen in 2005. The Contex, inaugurated in late 2007, has already exceeded its previous high from February 2008 by over 25%.

The extremely strong market is driven by solid cargo volumes combined with very low general efficiency. The Covid-19 crisis is still responsible for the shoreside labor shortage in many parts of the world, which leads to longer ports stays, congestion and consequently shipping capacity being bound by waiting time. By the spring of 2021,

container equipment still remained in short supply, which forced operators to look at creative solutions at how to reposition boxes the quickest way to the highest paying freight market. An ageing fleet with more technical off-hire times also contributed to the capacity shortage.

As there were no vessels available on a spot basis or for short periods, operators are also having trouble covering gaps arising from the regular dry dockings the vessels have to undergo. The usual practice of just chartering in a replacement ship no longer works, and either schedules have to be scrambled in order to use vessels from other services or in some cases the cargo is just not being transported. For the Caribbean trades this problem is even more

pronounced as due to cost reasons the large majority of owners prefer to dock their ships either in Europe or Asia. Factoring in four weeks of positioning voyages, ships are “gone” for almost two months. In 2021 almost 500 ships or about 17% of the total fleet between 500 and 3,000 TEU, have to go to dry dock for class renewal. Additionally, with many ships now also installing ballast water treatment systems, yard stay times are likely to be above average.

The overall market development has generally been shaped by a two-step process. First charter rates went up and then durations increased. With the higher rates many owners wanted to lock in their earnings for as long as possible. This led to discounts being granted for periods which

www.caribbean-maritime.com 35

RUSSBROKER CARIBBEAN MARKET REVIEW

were longer than the market norm. The Caribbean operators thereby led the way in the 1,100 TEU and to some degree in the 2,500 TEU segments by being among the first to fix two-year periods already in February. By the end of April barely any owner would accept periods for less than two years and for the larger ships sometimes even three years. Shorter periods were only available under special circumstances, when for example ships were slated to be sold or had to go to dry dock in the near future.

The sentiment among the carriers also turned this year. In January and February many were reluctant to fix tonnage too early as they were hoping for a rate correction,

by March and April however the majority apparently did no longer believe in falling rates in the near future and rather extended their vessels early in order not lose them to the competition.

The rapid charter rate increases this year has also rendered the individual vessel’s technical specifications and exact geographic position less important. Normal disadvantages such as old age or poor fuel efficiency have almost disappeared when it came to rate differences and by April 2021 positioning voyages had become almost exclusively for charterers’ account.

The segment of 2,500 TEU vessels remains important for intra-Americas and Europe to Americas trade. About 10% of the fleet of 2,400 to 2,800 TEU geared ships trades in the Caribbean, US Gulf, North Coast South America area, another 10% sails in mainly reefer-heavy trades across the Atlantic and a further 5% of those ships are employed on the west coast of North, Central or South America.

Charter rates in this size were mainly driven by Asian demand. Despite the usually higher operating expenses in the Americas,

In the 1,100 TEU size category, the Caribbean globally led the way with the first two-year charters being fixed already back in February.

Owners’ focus was first on long employment and only second on even higher rates

36 Caribbean Maritime | June - September 2021

rates generally lagged US$ 1,000 to 2,000 behind the ones achievable in Asia.

In the fall of 2020, a 2,500 TEU ship could still be had for around US$ 14,000. By January 2021 the rates had gone up to US$ 17,000 for one or US$ 15,000 for two-year periods. In March, rates crossed the US$ 20,000 barrier and by early April one ship fixed US$ 22,500 for 24 months Caribs trade. In Asia and the Mediterranean high US$ 20,000 had already been reached by late-April.

One ECSA operator of such tonnage decided to buy another ship rather than charter one, as owners had previously been oftentimes reluctant to trade their vessels off the coast of Brazil due to the long positioning voyage.

Another major carrier decided to add an extra North Europe to Central America loop mainly for reefer exports. By the end of April, a mix of 2,500 TEU geared, 2,800 TEU gearless and 3,500 TEU gearless vessels were employed in this service, illustrating the difficulty for charterers to source optimal tonnage.

In a normal market the introduction of six specialized, containerized newbuilding reefer vessels, able to carrier over 600 reefer containers, about equivalent to a 2,500 TEU ship, would have had a significant impact, but in this buoyant market the displaced vessels were quickly absorbed without denting rates.

Similar to the other vessel sizes the 1,700 TEU segment registered large earnings jumps as well. The year started of with 12 months being worth about US$ 12000 before rising to over US$ 15000 in March and up to US$ 18,000 by April. In this size category two ships were also fixed for 3 years and the last one only came at 4% discount compared to the previous twoyear fixture.

Outstanding is also the fact that one fruit producer had to commit itself to an 1,800 TEU high reefer vessel for two years in order to secure the ship at all. This carrier in the past used to charter 1,300 TEU or 1,700 TEU ships only for a few months as cargo volumes fluctuate with the seasonal produce.

CONTEX

CONTEX

12 MONTHS, 1100

12 MONTHS, 1700

12 MONTHS, 2500

Jan-21 741

8952

12863

16917

Feb-21 825

9860

13736

18860

Mar 21

11320

16162

21835

13644

19385

26543

975

Apr-21 1178

1300 TEU high reefer ships proved to be popular once again. After fixing already above US$ 10,000 in December, rates climbed to US$ mid-11000 by January and the first two-year period was concluded in February at US$ 10,500. In February, one Caribbean operator also added a 1,300 TEU ship to an existing service run with 1,100 TEU tonnage in order to increase frequency and capacity. By March 24-month periods could already be had for mid US$ 11,000 before the pace accelerated even more in April. Two year Caribs trade went for US$ 13500, then a sister fixed two years Mediterranean trade at US$ 16000 and another one achieved a remarkable US$ 20,000 plus rate for a short period of “only” one year. This development illustrated nicely that the traditional Caribbean trading premium is currently not measurable as rates simply rise day by day.

In the 1,100 TEU size category, the Caribbean globally led the way with the first two-year charters being fixed already back in February. Owners’ focus was first on long employment and only second on even higher rates. This was illustrated by standard 1,100 TEU ships all fixing mid US$ 10,000 levels – for six months in December 2020, 12 months in January and 24 months in February.

By the end of April such vessels had reached US$ 13,000 to 14000 for two years with eco tonnage US$ 2-3,000 above for even up to three years. In Asia earnings levels had gone even further with rates beyond US$ 15,000 for a regular CV 1,100 type.

As expected, the plans for a new Mexico service from a container shipping newcomer did not materialize as no vessels were available and whenever a ship did come open owners preferred to fix with the established players. The service, originally

planned with two 1,100 TEU ships in January, was postponed to March, when the operator was also looking at 1,300 TEU or MPP tonnage. But by end of April no vessels had been chartered yet.

Charter rates for the smallest feeder vessels followed their larger sisters and also increased dramatically. A 700 TEU ship fixed over US$ 10,000 in April and some popular 800/900 TEU designs worked their way up from low US$ 9000 at the beginning of the year to almost US$ 15,000 by the end of April.

The fleet of small container ships continues to diminish rapidly as more and more vessels are being sold off. After grounding on the West coast of South America in October 2020 a 500 TEU container ship was deemed irreparable and sent to be broken up.

One 700 TEU geared ship, which had been sold in the fall of 2020, left the Caribbean islands trade in February at the end of its charter towards the Mediterranean. The same owner purchased another 700 TEU geared ship in February this year. The vessel is still trading for a major operator in the Caribbean until the summer this year and then will most likely also sail towards Europe. A further two 700 TEU gearless vessels are also likely to leave the Americas trading area soon, as they have been sold to European owners who will probably employ them in their own noncontainer trade. All those developments leave less then 10 sub 800 TEU charter vessels in the Caribbean.

Despite the very high charter rates only a very limited number of multipurpose vessels is being employed in pure container trades. A relatively high number of individual cargo consignments have been shipped on MPPs in 2021 so far but

most container operators shy away from using such vessels in regular services. The reasons have been the costs for sourcing container lashing material, slow vessel speeds and longer port turnaround times due to missing cell guides. Some container terminals are even completely refusing to handle non-celled tonnage as labor for lashing is already in short supply.

MACROECONOMICS Despite all the Corona setbacks the last global economic forecasts have been more positive than at the end of 2020. In its latest outlook the IMF expects global GDP to expand by 6% in 2021 after it contracted by 3.3% in 2020. World trade forecast are not as optimistic as an 8.4% growth in 2021 would not fully recover the 8.5% decline in 2020.

For Latin America and the Caribbean, the outlook however is far worse as this year the expected expansion will only be 4.6% versus last years strong contraction of 7%. In contrast the US for example, an important trading partner for many Caribbean countries is forecasted to post GDP growth figures of -3.5% and 6.4%.

Central America and the Caribbean individually are below the average with -7.2% and 5.6% and -4.3% and 3.3% respectively.

Some experts are also afraid that the rise in poverty and consequent decline in education could have a negative long-term effect for some Caribbean and Central American nations.

Overall, access to vaccines and the pace of vaccinations will make a relatively larger difference to the Caribbean compared to other parts of the world due to their high dependency on tourism. In general, a normalization of the health situation is expected to give a stronger boost to the consumption of services such as travel and leisure activities than the consumption of physical goods. As a consequence, globally not a lot of extra cargo volumes are to be expected except for the Caribbean where a high share of the goods consumed by tourists have to be imported. In Jamaica for example the hotel and restaurant sector contracted by -53% in Q4 2020 compared to one year ago, whereas manufacturing only shrank by a minuscule 0.4%.

www.caribbean-maritime.com 37

RUSSBROKER CARIBBEAN MARKET REVIEW SALE & PURCHASE OF CONTAINER TONNAGE IN THE CARIBBEAN

SELECTED CONTAINER FIXTURES SUB 1,000 TEU - CELLED

After the sale and purchase market picked up at the end of 2020, activity has increased even more with the rise in charter and vessel values.

Many owners have withdrawn tonnage previously been offered as very lucrative charters could be fixed. Other owners on the other hand have been tempted to offload tonnage at increased prices and especially the ship financing banks wanting to exit the segment have recently used the opportunity to reduce their balance sheets.

During the first four months of 2021 over 150 container ships have already been sold. Of those ships roughly half went to end-users as they tied to hedge against ever rising charter rates.

Sales price, also for smaller feeder vessels, have risen sharply. Compared to one year ago 1,700 and 2,500/2,800 TEU tonnage achieved over 50% more by April 2021. In the Panamax-sizes the jump has been even more extreme with prices more than doubling on a year-on-year basis.

Instead of paying high prices for older second-hand tonnage, newbuildings are becoming more attractive for some operators.

Especially as charter periods being asked for by owners are becoming ever longer the relative risk of committing to newbuildings is shrinking.

Newbuilding slots in China are however getting scarce with just a few places left for 2023, the majority being offered is already for second half 2024.

Two of the popular Zhejiang 950 designs changed hands, one going to a European charter owner and one going to a big liner operator.

Two very high reefer, gearless 2,800 TEU ships, which had been trading for one of the US fruit producers for several years were sold to a tramp owner and ended their charters. One of the vessels remains in the area and now trades between Panama and the Amazon while the other left towards the Mediterranean.

End users operating in the Caribbean also bought a 1,700 TEU and a 2,500 TEU vessel.

As tonnage availability is shrinking every day due to the long-term fixtures, there are very few Americas-suitable newbuildings in the pipeline and carriers are buying up a relatively large share of second-hand tonnage therefore we expect charter rates for Americas-trading tonnage to remain very stable in the near future.

38 Caribbean Maritime | June - September 2021

Jan 21

Hohebank 966 TEU / 604@14 / 19on37 / 252rp

23-25 months US$ 9250 p/d

Mar 21

Falmouth 862 TEU / 585@14 / 19on38 / 204rp

16-18 months US$ 11300 p/d

Apr 21

RS Mistral 712 TEU / 424@14 / 16on24 / 100rp

11-13 months US$ 10100 p/d

Apr 21

Vega Sagittarius 966 TEU / 604@14 / 18on35 / 252rp

17-19 months

US$ 14850 p/d

1,100 TEU - GEARED, CELLED Jan 21

Contship Zoe 1114 TEU / 700@14 / 20on42 / 220rp

12-16 months US$ 10250 p/d

Feb 21

Contship Air 1118 TEU / 712@14 / 20on42 / 220rp

23-26 months US$ 10500 p/d

Mar 21

Taipei Trader 1102 TEU / 705@14 / 18on25 / 220rp

29-32 months US$ 14800 p/d modern eco ship

Mar 21

Bomar Rebecca 1118 TEU / 712@14 / 20on41 / 220rp

23-25 months US$ 11950 p/d

1,300 TEU - GEARED, CELLED Jan 21

AS Faustina 1296 TEU / 958@14 / 20on47 / 390rp

8-10 months US$ 11350 p/d

Feb 21

Warnow Dolphin 1296 TEU / 958@14 / 19on45 / 390rp

23-25 months US$ 10500 p/d

Mar 21

Arsos 1296 TEU / 957@14 / 20on45 / 390rp

24-26 months US$ 13800 p/d

Apr 21

Juliana 1338 TEU / 914@14 / 19on49 / 449rp

8.5-9.5 months US$ 16250 p/d

1,700 TEU - GEARED, CELLED Jan 21

Melbourne Strait 1795 TEU / 1312@14 / 21on58 / 319rp

10-11 months US$ 12500 p/d

Feb 21

AS Susanna 1700 TEU / 1259@14 / 19on58 / 377rp

11-13 months US$ 14000 p/d WCSA trade

Mar 21

Marfret Marajo 1691 TEU / 1149@14 / 19on55 / 418rp

12-14 months US$ 16000 p/d

Apr 21

FS Ipanema 1794 TEU / 1350@14 / 20on58 / 319rp

35-37 months US$ 17250 p/d

2,500 TEU - GEARED, CELLED Jan 21

Maira 2506 TEU / 1805@14 / 21 / 420rp

23-25 months US$ 15000 p/d delivery in the Mediterranean

Feb 21

Bomar Juliana 2556 TEU / 1759@14 / 20on66 / 600rp

18-20 months US$ 17500 p/d

Mar 21

Minerva 2339 TEU / 1780@14 / 19on48 / 500rp

24-26 months US$ 20500 p/d modern eco ship

Apr 21

Erato 2546 TEU / 1882@14 / 22on68 / 616rp

23-25 months US$ 22500 p/d

INTEGRATION BY

Enhancing efficiency through

SYSTEM INTERFACE AND INTEGRATION

T

o keep ahead of the curve in an increasingly competitive global market, industries have looked to technology to improve operational efficiency. One such method has been the use of system interface or fully integrated systems.

Today, we look at the advantages of interface and integration through an interview with Kay Wilson Kelly, Operations Manager/Project Lead at ADVANTUM. Wilson-Kelly explains that an interface is where two or more separate software products communicate under limited capacity and data is maintained in multiple

locations. A fully integrated system means that the products are one.

SYSTEM INTERFACE AT WORK Today, there are many ways that one application can be integrated or interfaced with another, once they both can facilitate the process. An application program interface (API) can be developed to define how both software can interact. To eliminate the re-entry of data, an interface can be written where one application generates an extract of data and sends it to the other application to consume same. For successful transmission, the data output must contain

fields that are similar in size and data type in order to accept the data. The API may have to do some data conversion and mapping to achieve this.

Take for instance when Billing and General Ledger Accounting applications are disparate systems. When you generate a receipt, you would capture a customer name, item, cost of item and amount. You now need this represented in your General Ledger as an accounting transaction.

Instead of accountants re-entering the data in the General Ledger that is already in the Billing system, the API will translate this data by applying a debit and credit account

www.caribbean-maritime.com 39

INTEGRATION BY

for receipts, then create a journal record with the combined data to be imported into your General Ledger System.

Once these interfaces are thoroughly tested and implemented, a way is now provided to move data from one system to the other on a real time basis or in batches based on a time schedule.

Interfacing of applications can also be achieved between software of two or more separate clients. In the shipping industry, freight forwarders, brokers, ports and Customs offices communicate and pass along data using interfaces as well. The data movement can also be collated by a Port Community System that forms a central storage point where related parties can view shared information. Each party can be responsible for sending or consuming data related to themselves.

With interfacing comes smoother operational flows, removal of double entry of data, less errors in data entry and facilitation of faster processing.

INTEGRATED SYSTEMS AT WORK When applications are integrated, they are more tightly coupled. They all share a common platform and database. Again, using the shipping industry, an integrated system can be developed that allows a port, for example, to perform vessel scheduling, labor requisitions and allocation, container and motor vehicle load and discharge, yard management, warehousing, container processing, as well as vessel and cargo billing all on a single platform. Each activity can be produced as its own module to allow for role segregation. As a business entity, you may still be required to interface with a General Ledger, however, imagine all those applications on a single platform.

Management of the system, the need to have multiple servers and various architectures has been simplified. Users experience a unified Graphical User Interface (GUI) where keystrokes and functionality are the same.

The learning curve to know how to navigate systems too has been made simpler.

An integrated system allows for easy generation of workflows within and across each role. For example, following the scheduling of a vessel, a workflow process can send an alert in the form of a requisition to HR to allocate stevedores for work when the vessel arrives. Based on the activities assigned to each stevedore, another workflow can initiate the billing process to relevant entities based on start and end times of each activity performed. The use of Dashboards and Query tools which too form a part of the integrated system (and therefore needs to only pull from a single database), can provide a user with real-time reports as data extracts or graphical visuals.

The ADVANTUM Suite of Products allows all that, catering also to other industry

Users experience a unified Graphical User Interface (GUI) where keystrokes and functionality are the same. The learning curve to know how to navigate systems too has been made simpler 40 Caribbean Maritime | June - September 2021

players such as agents, freight forwarders and warehouses using similar integration techniques. Since the platform and database is like the port, interfacing is that much easier because of the similarity of the database structure.

Similar advantages as with interfaces also exist. However operational efficiencies are now taken to another level with the introduction of the workflows. Separately, all your data is up to date in a single database and since all users are viewing the same data set, dissemination of unified data is realized.

The ADVANTUM team has been providing port, shipping, freight and transportation companies in the Caribbean with the information technology services required for a smooth and effective transition to this new world of speed, efficiency and customer satisfaction. Although ADVANTUM products have been used widely in the shipping and logistics industry over the years, several applications transcend shipping and also help other enterprises to manage financials and resources with greater efficiencies, such as ADVANTUM Financials, ADVANTUM Payroll, ADVANTUM Motor Vehicle, ADVANTUM eLabour and ADVANTUM Equipment.

You can request a free consultation or demo today by contacting ADVANTUM at 876-923-7022; email: contact@advantumpcs.com or by visiting their website at advantumpcs.com?

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