ISSUE No 45
FEBRUARY - MAY 2022
WiMAC's Tamara Lowe
Port of the year
Taking the helm
Alexander Gumbs
Freeport Container Port
A man on a mission PORT L AFITO
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SAILDRONE
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ROBERT BELL
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B A L L A S T WAT E R T R E AT M E N T
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@caribbeanmaritimemagazine
Cover image: Andy A Graham / Shutterstock.com
CaribbeanMaritimeMagazine
ISSUE No 45
February to May 2022
THE OFFICIAL JOURNAL OF THE
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Caribbean Maritime is delivered to subscribers in biodegradable packaging and the magazine is produced using paper from PEFC certified sources implementing sustainable forestry policies to help preserve our environment.
CONTENTS 2
FROM THE CSA PRESIDENT Positive changes and initiatives
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. SHIPPING ASSOCIATION COUNCIL 2022-2023 President: Marc Sampson Immediate Past President: Juan Carlos Croston Vice President: William Brown Group A Chairman: Eduardo Pagán Representatives Group A: - Nazilia Simone Philips - Rhett Chee Ping - Desmond Sears Group B Chairman: Marc Williams Representative Group B: Cristyan Peralta Group C Chairman: María del Mar Rodríguez Representative Group C: Robert Bosman Group D Chairman: JC Barona Representative Group D: Sabine Bajazet CSA General Manager: Milaika Capella Ras 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 Tel: +44 (0)1206 752902
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PROFILE: ALEXANDER GUMBS A man on a mission
10 CARIBBEAN MARITIME COMMENT The year ahead
14 PORT OF THE YEAR 2021 Freeport Container Port
15 INTERVIEW: DONA REGIS A view from the sharp end
17 SAILDRONE
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Crowley invests in Saildrone
20 WIMAC Going places - Tamara Lowe
27 OBITUARY: ROBERT BELL The CSA bids a sad farewell to Robert Bell
29 TIDEWORKS TERMINAL OPERATIONS Haiti’s Port Lafito now live with Tideworks Mainsail 10
31 ASTIVIK Ballast water treatment system
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34 FABIEN COUSTEAU Cousteau chooses Curaçao
35 BLUES & BLUES MAKANA FERRY
PUBLISHER
New ferry service for St Maarten
37 ROUNDUP
Land & Marine Publications Ltd 1 Kings Court, Newcomen Way, Severalls Business Park, Colchester Essex, CO4 9RA, United Kingdom 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.
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The latest news from around the Caribbean
42 ACMF ANCHOR AWARDS 2021 43 RUSSBROKER Caribbean Market Review
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47 THE LAST WORD The container, it’s place in history
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FROM THE CSA PRESIDENT
Positive changes and initiatives
W Juan Carlos Croston Immediate Past President Caribbean Shipping Association
ith the start of each year, we customarily take the time to reflect on what was achieved over the past 12 months and how we may improve on that going forward. Similarly, this foreword will be one of contemplation and consideration of what lies ahead. At the beginning of my tenure in October 2018, I said in my inaugural address that “As we strengthen each other, so too will our institution grow in strength.” I believe that statement was never truer than in the following years that would see the Association, and the world at large, combat a threat that has affected us on all fronts.
2 Caribbean Maritime | February- May 2022
Despite the impact of the coronavirus pandemic, the achievements and breakthroughs of the CSA have been many and differing from the melancholy experienced elsewhere. Our Secretariat, led first by Fernando Rivera and later succeeded by Milaika Capella-Ras, undertook the challenge of overhauling the CSA’s manner of doing business to remain relevant and responsive in an increasingly digitalized manner that was borne both out of strategy and necessity. Under his, and later her, leadership, we have seen an ever more preemptive approach by the Secretariat which resulted
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in a myriad of positive changes and initiatives that have aided the Association’s visibility and enhanced activism from its membership. This includes a bolstering of its Public Relations team which, steered by Mrs Capella-Ras, now provides regular updates on its advocacy and efforts through an instructive newsletter, frequent appearances and speaking engagements by the CSA’s executives at pertinent events, and a rebranding exercise that has brought the visuals of the Association on par with its vision.
Rebranding The rebranding initiative stemmed from a need to appropriately represent the CSA as it forges a path of consequence for its next 50 years of existence. Included in this arduous process was the revamp of our website, which improves the users’ experience and now reflects the world-class status of the Association, and a logo refresh which honors our past while focusing squarely on our potential and future. Renewal was the unofficial theme of the past year with the conferring of the prestigious Ludlow Stewart Container Port of the Year also marking a critical juncture for the CSA. The modified award system removed benchmarks and absolute growth numbers which allowed entrants to be assessed on individual merits across 10 key categories. This progressive move, led by Roland Malins-Smith, presented each port with an equal prospect to win, regardless of size. Let me take this opportunity once more to congratulate the hardworking team at the Freeport Container Port which came out atop our award in 2021. The much-anticipated launch of the Caribbean Research Institute (CRI), aimed at providing targeted information – which can improve efficiency, productivity, investment and output – to our members, was another highpoint of 2021. The inaugural CRI report, due by the end of January, will assess international trade, port activity and
liners’ capacity, as well as an evaluation of the containerized activities of ports in the region. This critical development will play an important role in the informing the decision-making of our members as we continue to navigate the varied challenges faced by our industry. The Association’s leadership also reinforced its commitment to the body and its membership with the General Council facilitating greater dialogue through frequent meetings and open channels of communication over the past three years. These have increased synergies and the rapidity with which decisions are made, hallmarks of an organization on the cusp of transformation. We are certain that these modest but deliberate measures have contributed to our productivity and efficacy as the CSA’s driving force, and I am confident they will continue under the new leadership team.
Sustainability Central to our duties is the sustainability of our industry and the thousands of people who operate in it regionally. As part of our response to the Covid-19 scourge, we lobbied regional governments to prioritize the protection of our seafarers and their designation as essential workers on the frontlines of the pandemic fight. While they continued their often-unheralded service, many were left stranded at sea, unable to gain access to safe transit and repatriation home. We must remember that at the core of our duty, is an obligation to the security and well-being of our primary resource – people. Throughout my tenure, we have seen deeper and greater cooperation
with other regional and international organizations and agencies, including the International Maritime Organization, the Caribbean Community, the Maritime Technology Cooperation Centers, the Comision Centromericana de Transporte, the Organization of American States, the Association of Caribbean States, the American Caribbean Maritime Foundation, the Federation of National Associations of Ship Brokers & Agents, the Caribbean Marine Environment Protection Association, Women in Maritime Association of the Caribbean, and the Organization of Eastern Caribbean States. This heightened collaborative approach is vital to the development of a unified and purposeful Association which can truly deliver on our mandate of being the voice of the Caribbean shipping industry. As we look forward to a new year, with a newly elected CSA executive, I am comforted in the knowledge that this pivotal moment will be met by a stronger, more cohesive Association steered by steady hands, capable minds and a desire for greatness.
The much-anticipated launch of the Caribbean Research Institute (CRI), aimed at providing targeted information to our members, was another highpoint of 2021” www.caribbean-maritime.com 3
PROFILE ALEXANDER GUMBS
A man on a mission Alexander Gumbs
Alexander Gumbs returned to St Maarten in August 2020 from The Bahamas and was appointed Port St Maarten Group CEO in August 2021. Prior to his appointment, Alexander managed his own company while consulting for Port St Maarten and he enjoyed time with his family during the pandemic. Here he explains his reasons for his return, his plans for Port St Maarten and how things might be a bit different going forwards.
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Q. Where were you born and where did you grow up? A. I was born on the Caribbean Island of St Maarten and grew up in the district of Belvedere.
Q. Where did you go to school and to university? In which subject(s) did you graduate? A. I completed my high school studies on St. Maarten and traveled to the Netherlands to continue with my studies. I graduated with a bachelor’s degree in Commercial Economics, with a specialty in Retailing & Franchising followed by a master’s degree in Management/ Leadership with a specialty in Project Management; and I am also a Certified Port Executive (CPE) from MacDonnell. Q. What was your first job on leaving full-time education? A. I joined the Port St Maarten Group in 2012 as Business Development Officer in the Commercial Department and was later promoted to Business and Marketing Manager. Q. Why did you join the Port St Maarten Group of Companies? A. Eleven-years ago I did my internship at the Port St Maarten Group. I worked on my thesis the following year titled, ‘Winning in a competitive environment.’ The thesis catered to the cruise sector and detailed how the destination could maintain its competitive edge in the region while showcasing the Friendly Island of St Maarten. Q. After achieving the business and marketing manager position you left the Port St Maarten Group to seek opportunities elsewhere at Carnival Corporation
Image courtesy of Port St Maarten
Q. How big an influence were your parents on your early life and what did your parents do for a living? A. I grew up in a single parent family home. My Mom instilled in me to work hard for what you want in life and to never give up.
I am a hands-on person and solutions-oriented, and my main goal was to move the group forward and rebuild the image and secure the economic future of the country” which involved moving to The Bahamas? What were your reasons for doing so? And how did you enjoy living and working in The Bahamas? A. After my team and I were able to regain lost cruise business over an 18-month period due to the 2017 hurricanes, I was given the opportunity to join a project belonging to Carnival Corporation in The Bahamas. I already had a good working relationship with cruise executives from Carnival, so the synergy and close working relationship as Business and Marketing Manager was in place; and having such an opportunity to work with one of the largest cruise brands in the world would only further advance my understanding of the industry which would be beneficial in the long-term for other future endeavours. I enjoyed living and working in The Bahamas and it is comparable in many ways to island life here at home.
Q. In August 2021 you were appointed CEO of Port St Maarten Group. They say, never go back but was it an easy or difficult decision for you to return to the Group and in the top position? A. It was like going back home where it all started. It was easy for me as I already had the experience working with the group for a number of years and I was familiar with all the departments and employees working there. At the same time, it was a new challenge as well. The pandemic shut down the country’s cruise sector for 15-months and we needed all hands-on deck to get things moving again once the no-sail order was lifted by the US’ CDC. Q. You returned to a company in which a previous senior executive had been convicted of financial irregularities, so did you have any concerns as to what
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Image courtesy of Port St Maarten
PROFILE ALEXANDER GUMBS
you might find on your return or what you might have to put right at the organization? A. The Port St Maarten Group did experience a tough period; however, I am a hands-on person and solutions-oriented, and my main goal was to move the group forward and rebuild the image and secure the economic future of the country. The port cruise and cargo operations are responsible for approximately one third of the country’s gross domestic product. Q. St Maarten has always been a popular cruise destination and one, perhaps, that has traditionally chased passenger volume. Will this continue to be your strategy going forwards? A. We must be realistic. The destination can only accommodate so many cruise passengers and when you oversaturate you downgrade the overall visitor experience which defeats your purpose of sustainable cruise economic activity. With current country infrastructure, I prefer a balanced approach. We have had
up to two million cruise passengers in one year, and we know exactly what the bottlenecks are. Q. Like all other Caribbean cruise destinations, St Maarten was badly impacted by the Covid-19 pandemic. How did the port survive almost 18 months without any cruise traffic and how do you see things shaping up for Port St Maarten in 2022? A. The first thing we needed to do was implement cost-saving measures that would ensure we can fulfil our long-term financial obligations. Challenges will continue in 2022 as we grow out cruise passenger numbers, but we expect a positive turn-around in 2023 with cruise numbers back to 2019 levels. The pandemic remains an issue for the global community of nations and there remains uncertainties such as the new Omicron variant, however we continue to be vigilant and will work with our cruise partners and stakeholders to weather these challenges together and adjust accordingly. So far, since the resumption of cruising in June 2021, based on our
6 Caribbean Maritime | February- May 2022
forecast up to the end of 2021, we have surpassed our projections. For 2022, we can expect a very good cruise season, but I am cautiously optimistic and await to see what role Omicron will play in this pandemic. Q. Given the closeness to the port of Princess Juliana International Airport and the island’s strong air links with Europe and the US, is attracting more homeporting vessels still part of the plan post pandemic? A. Homeporting is a cornerstone of the Port St Maarten Group in serving the cruise industry. For the first time ever, in 2021 our homeporting operations catered to larger cruise vessels handling over 1,000 cruise passengers. Normally, we have been homeporting vessels of 100-500 guests. Homeporting is part of our sustainable cruise growth strategy for the mid-to-long term. Q. Mega-yachts are an important source of revenue for Port St Maarten and it’s a sector that has proved remarkably
PROFILE ALEXANDER GUMBS
Image courtesy of Port St Maarten
resilient during the last two years. But Port St Maarten has acknowledged capacity constraints in this sector. So how do you plan to address these? A. Port St Maarten has done very well up to the end of 2019 early 2020 prior to the onset of the pandemic. In mid-2020, after the destination re-opened to tourists, the mega-yacht sector was one of the sectors that started to comeback. Port St Maarten caters to the larger yachts that cannot be accommodated in the Simpson Bay Lagoon which is a mega yacht haven where you have multiple marinas/docking facilities owned by different companies. We will continue to cater to the larger vessels and develop accordingly as it grows where the larger mega yachts are concerned. We know investments in port infrastructure is essential to accommodate sustainable future growth and those investment decisions will be made in due time. Q. Aside from its cruise and mega-yacht activities, what plans do you have for Port St Maarten from a cargo handling perspective? A. The cargo operations at Port St Maarten are essential to the national economy and the neighbouring islands. St Maarten is a hub and a transhipment port for four immediate islands. Our main priority at this time is to increase efficiency and improve service delivery via current operations so we can see further growth in transhipment. We will look at additional growth opportunities, explore renewable energy and sustainable initiatives while improving operational excellence.
closely with the French side of the island? If so, how might this materialize? A. Yes, as Port St Maarten Group, we will do our part. The tourism offices from both sides already promote the island as one destination. Back in October 2021, the port took part in ‘Destination Sint Maarten/Saint Martin United’ at the Fort Lauderdale International Boat Show (FLIBS). This collaboration brought together the yachting industry from the north and south sides of the island. Working together has already been set in motion and we will continue that collaboration for years to come. Together we are a much stronger destination from a marketing and promotional perspective.
Q. Some joint marketing has already taken place, but is it your intention to work more
Q. In 2020 consultants and strategic partners EY Dutch Caribbean produced a
The tourism offices from both sides already promote the island as one destination. Back in October 2021, the port took part in ‘Destination Sint Maarten/Saint Martin United’ at the Fort Lauderdale International Boat Show (FLIBS)”
national development plan for the port. How are things progressing implementing the consultants’ suggestions and has the pandemic led to any changes to the original plan? A. Without a doubt, things envisioned for the port of the future had to be adjusted due to the pandemic. We have been exploring ways to realize our long-term goals and masterplan via a partnership process. The final Strategy Document was issued to the shareholder (Government of St Maarten) in the second quarter of 2021. Our current priorities are related to returning our cruise visitor numbers to 2019 levels of approximately 1.5 million and we envision this taking place in 2023, however this all depends on how the pandemic evolves within the next two years. Q. What are your main interests outside of work? A. I enjoy spending time with family now so even more with a new-born baby girl with my wife, our first. I also enjoy working out and spending time outdoors. I am also very passionate about table tennis and enjoy motor sports.
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Caribbean Maritime
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by Gary Gimson
The year ahead Those attempting to forecast the future rarely get it right. It’s fair to say that almost nobody foresaw the 2008 global financial crash and nobody, but nobody, gave even a hint in late 2019 that the world would be laid low by a virus – and for two long years.
10 Caribbean Maritime | February- May 2022
So, with that in mind Caribbean Maritime attempts to look at what 2022 has in store. First, this year must be better than the previous two – at least for those in the cruise shipping sector (see also story in this issue by Dona Regis-Prosper). The second half of last year saw a gradual and welcome return to something approaching normality for cruise operators after ships had sat idle for many months in Miami, off the Florida coast and elsewhere. Even then this apparent
return to normality masked (no pun intended) limited passenger capacity on cruiseships and all kinds of pre, on-board and post-voyage Covid tests and a variety of petty restrictions and protocols. Though no doubt easing, it seems these sometimescumbersome measures will still be with us for some time. But if you thought Covid was all but over, then gloomy utterances at the start of the year from the US’ Centers for Disease Control and Prevention
(CDC) suggested otherwise with unhelpful advice that suggested cruises should be totally avoided, stating: “The virus that causes Covid-19 spreads easily between people in close quarters on board ships, and the chance of getting Covid-19 on cruise ships is very high, even if you are fully vaccinated and have received a Covid-19 vaccine booster dose.” In fact, the CDC claimed that the virus was on board every cruise ship operating out of US waters. But nearly two years into
the pandemic, it appears that would-be passengers and cruise operators are taking a more phlegmatic attitude than the alarmist CDC; believing they are collectively taking sufficient preventive measure to reduce the impact of what seems to be an increasingly mild virus and to largely ignore the warnings from the CDC. Unfortunately, some disruption to services continued to occur in early 2022 due to minor on-board Covid outbreaks among small numbers of passengers. This has proved an unexpected and unwelcome setback for the industry. Nevertheless, this looks like only a small reversal in an unstoppable return to pre-2020 operational levels. Then there are the destinations. It’s incontestable that Caribbean islands have been unfairly impacted by Covid over the last two years. Infections and death rates from the virus have, by and large, been low by international standards yet many islands have adversely suffered from decisions about travel made by foreign governments of which they have little influence and certainly no control. A particular example of this is Grenada, which was red listed as a destination yet went for many months without a single infection – let alone a hospitalization or a death from Covid. Expect to see far fewer travel restrictions going forwards – even if a new Covid variant appears there is unlikely to be some of the panic measures introduced to combat the Omicron strain. So 2022 will be the year the Caribbean can finally put Covid behind it and look to a better
future in which viruses – or the perceived threat of viruses – play little or no part. On the other side of ledger, shipping more generally – and without in any way being flippant, has had a good Covid as consumers shelved two years’ worth of vacation plans and instead bought “stuff”. This buying of “stuff” from China and other Covid-related factors racked up global freight rates, caused major congestion at US and other ports and led to all kinds of logistical bottlenecks. As a large percentage of the Caribbean’s seaborne trade is with southern US then the region has been fortunate to avoid increased freight rates and much of the congestion.
boxes for shippers. And who would have thought it just two years ago, but de-containerization continues apace and as result of the high rates and, indeed, a scarcity of boxes. So, we now see onceunitized cargoes such as Floridabound frozen chicken and some fruits moving as breakbulk. Clearly, this is a retrograde step but one that is likely to persist for the much of this year. In general, Caribbean ports have not endured some of the problems of those in the US and may have even gained here and there from the latter’s congestion troubles. So, with container rates staying high, the region’s ports can also expect another good year. And for the Caribbean
And who would have thought it just two years ago, but de-containerization continues apace and as result of the high rates and, indeed, a scarcity of boxes” Global container rate indices showed that prices peaked in September then fell for a while before picking up again at the tail end of the year and into 2022. These sky-high rates remain highly profitable for carriers, which at times during 2021 experienced operating margins of more than 40 per cent. This compares to only 8.5 per cent the prior year. Expect to see margins fall somewhat in 2022 but remain historically high ahead of the arrival of new tonnage in 2023 and, perhaps, more importantly additional
Shipping Association (CSA), 2022 will be an opportunity to hold in-person events once again. The first of these is scheduled for May. Virtual meetings are OK, but there’s nothing quite like the magic of a CSA AGM to bring everyone from our industry together under one roof. All in all, and despite the latest Omicron variant of Covid, the outlook for 2022 feels a little more positive than it has for some time. So, here’s to 2022 and for better times ahead.
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PORT OF THE YEAR WINNER
Port of the year 2021 Freeport Container Port “We are thrilled”. These were the words of delighted chief executive Alan Dixon when asked by Caribbean Maritime magazine for his reaction to Freeport Container Port (FCP) winning The Ludlow Stewart Container Port of the Year Award 2021. The Caribbean Shipping Association (CSA) has been organizing its Port of the Year Award for 34 years. The Award has traditionally been a key feature of the gala dinner at the CSA’s October Annual General Meeting. Unfortunately, and in contrast to previous years (2020 excepted), there was no in-person AGM in 2021 due to the ongoing Covid-19 pandemic. However, and to underline the importance the CSA attaches to the award, immediate past president Juan Carlos Croston and general manager Milaika Capella-Ras and Roland Malins-Smith all travelled to Grand Bahama to make the presentation to FCP.
Competition It’s fair to say that FCP fought off some tough competition to claim the 2021 title with both DP World Caucedo and Barbados Port chasing the Grand Bahama-based terminal all the way to the finish line. There were several key reasons for FCP clinching the award. For example, FCP saw an impressive 20 plus per cent increase in its box throughput in 2021 – from 1.26 million to 1.6 million TEU. Some of this growth was undoubtedly due to serious congestion issues that have plagued many US ports in recent months, but this doesn’t tell the whole story and Mr Dixon insisted that much of the additional volume was generated by customers on existing routes, including more South American reefer traffic.
12 Caribbean Maritime | February- May 2022
But having been knocked sideways by the devastating impact in 2019 of Hurricane Dorian – a category 5 storm that killed 74 people in The Bahamas (including 22 in Grand Bahama itself) with many more missing believed dead, FCP says it is now better equipped to face a similar event in the future. Dorian was the strongest hurricane ever to hit The Bahamas.
Highlight In accepting the award, Mr Dixon also wanted to highlight FCP’s efforts to reduce its emissions. He cited FCP’s fleet of seven three-high Kalmar hybrid straddle carriers – which are all-electric designed with Tare- 4 engines to prevent adding carbon to the environment – as evidence of this. These were delivered in February 2020. Corporate Social Responsibility is another key area in which FCP scored highly with the judges, who recognized the terminal’s local environmental efforts in running its ‘Go Green’ initiative for the past eight years with projects including beach cleaning and tree planting. Looking to next year, Mr Dixon said: “While the award has been huge for us, and retaining the title would be nice, we are not seeking awards”. And, as he sees it, it’s all part of an urge to do better.
FCP saw an impressive 20 plus per cent increase in its box throughput in 2021 – from 1.26 million to 1.6 million TEU”
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PORT OF THE YEAR AWARD
Image courtesy of Freeport Container Port
Award gets makeover
T
he Caribbean Shipping Association (CSA) has been running a Port of the Year award competition for 34 years. Today, the award is recognized as one of the maritime sector’s most prestigious and one that is truly independent of any commercial influences. During the early years of the competition some small island ports were able to claim the coveted regional crown. Sadly, this has not been the case for some time and the award had become dominated by the Caribbean’s top hub container ports. Fortunately, there has been a secondary prize of multipurpose port or terminal of the year which has had a much more varied list of recent winners. Given this situation, it was decided for 2021 to make some fundamental changes to how Caribbean ports and terminals would be judged for the awards. The highly distinguished Roland Malins-Smith, formerly CEO of Seafreight Agencies, was tasked by the CSA to update, simplify, and generally revamp the Port of the Year award process. It’s thought that there are some 40 Caribbean ports which qualify to enter the Port of the Year competition and it’s the
aim of the CSA to see that as many of these as possible enter in 2022. Despite a keen desire to win on the part of many, some Caribbean ports and terminals considered the participation process too burdensome and overly complicated. Malins-Smith set out to change this perception and to encourage more ports to enter the competition.
Unfortunately, the Covid-19 pandemic has temporarily put paid to that idea as there could be no meaningful comparison of Caribbean cruise ports in 2021. This eagerly anticipated award will therefore launch this year at the CSA’s October AGM. This new trophy will be known as the Nathan Dundas Cruise Port Award in honor of the Antiguan cruise champion and past CSA General Council member who sadly died in early 2021. To find his Port of the Year winner, MalinsSmith created 10 key performance indicators on which all ports would be judged with each entrant able to score a maximum of 10 points per category. The 10 categories comprised: Productivity, Security, Safety, Gender, Environment, Training, IT, Industrial Relations and Truck Turnround Times. The 2021 winner of the Caribbean Port of the Year award, Freeport Container Port, scored very highly in all 10 categories with 90 points out of a possible 100 as its final score. However, Malins-Smith conceded it was an exceedingly tight race with DPW Caucedo and Barbados Port narrowly missing out.
Improvements First, he chose to measure ports solely on their year-on-year improvements which, in effect, allowed smaller ports to compete on a level playing field with much bigger ones. This was not previously the case. Malins-Smith also opted to scrap the long-cherished Multipurpose port award; arguing that these days few Caribbean ports handled much in the way of breakbulk cargoes and so the focus should be exclusively on containers. The result is the Ludlow Stewart Container Port of the Year Award. Malins-Smith also proposed that the CSA should introduce a new Caribbean Cruise Port of Year competition – an award that would have equal status with the Port of the Year award.
14 Caribbean Maritime | February- May 2022
34 YEARS Unlike many of today’s numerous commercially driven and often contrived “all-must-have-prizes” award ceremonies, the CSA’s Port of the Year title has been running for 34 years and the winner is chosen solely by an independent panel of judges. The presentation of the award took place on 30 November in Freeport, Grand Bahama and was attended by CSA president Juan Carlos Croston, CSA general manager Milaika Capella-Ras and Roland Malins-Smith.
INTERVIEW DONA REGIS-PROSPER
A view from the sharp end Dona Regis-Prosper is the manager of Antigua Cruise Port. Dona has been at the sharp end as the Caribbean’s cruise sector has reeled in the face of the Covid-19 pandemic. But better times lay ahead, and Dona provides Caribbean Maritime with her insights and what the future holds for the region’s cruise industry.
Q. How do you see 2022 shaping up for the Caribbean cruise sector? A. Prior to the pandemic, the Caribbean accounted for 32 per cent of the worldwide cruise deployment making it the leading cruise region in the world. While Covid-19 is certainly a major setback, given the Caribbean’s strong brand, natural attractions, growing port infrastructural development and capacity, the region is well on its way to recovery in 2022. Most if not all cruise ports are reopened and recording increased calls. Last year ended on a very promising note for many cruise ports. Q. What is your Antigua estimate of cruise passenger numbers for the current year and how does this compare with 2019?
A. Our estimated annual passenger arrival is in the region of 500,000 which represents about 70 per cent of 2019. We still continue to receive bookings and thanks to our increased berth capacity, we will soon reach, even surpass the old days. Q. What do Caribbean destinations need to do to get passenger numbers back to 2019 levels or is this purely in the hands of the cruise operators? A. This is a great time for Caribbean destinations to continue to partner with cruise operators. One of the many lessons of Covid-19 is the importance of partnerships and collaboration. Collectively we all need to learn to develop strategies for doing business during this pandemic. As the health experts say: “Covid-19 will be
with us for a very long time”. At the center of this is the need to have protocols that are workable while keeping both visitors and residents safe. Additionally, there is a need to continuously work on our product, passenger experience, safety and security, marketing and branding as the major tenants of cruise port development remains. Q. Has coronavirus given cruise operators more or fewer reasons to homeport in the Caribbean? A. There is even greater opportunity for homeporting and inter-porting in the Caribbean to provide potential cruise passengers with even more flexible itineraries. Many destinations in the Caribbean are fully equipped with airport and seaport facilities and international air
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INTERVIEW DONA REGIS-PROSPER
connectivity to make very good homeports. Antigua’s airport for instance has just been named the Best Airport in the Caribbean by World Travel Awards 2021 given its modern facilities, ease of passenger movement and hospitable staff. In addition to its air connectivity to major source market destinations, on the seaport side, the complettion of the fifth berth and upcoming landside development place Antigua as a very good option for homeporting considerations in the Southern Caribbean. Q. Has the emergence of the latest, but seemingly milder, Omicron variant proved a setback for the full recovery of cruising in the Caribbean? If so, by how much? A. Omicron not only affected the cruising but the whole travel industry. With the Caribbean restart, we have had a temporary setback for which we have already protocols in place. With leading medical experts opinions, this wave is milder with a faster recovery time.
Q. Can Caribbean cruising ever return to how things were in 2019 or has Covid created scars that can never heal? A. When it comes to the future of cruising in the Caribbean, I hold on to the adage that “our come back will be much better than the set back”. I truly believe that there will be strong come back for the region, while the pandemic has taken a lot, it a taught us so much. As a region, we have grown and built even more resilience through stronger communications and teamwork which we can now put into developing our destinations in partnership with cruise operators.
When it comes to the future of cruising in the Caribbean, I hold on to the adage that “our come back will be much better than the set back”
Q. What’s been Antigua’s experience of the Omicron variant? A. Antigua is one of the destinations that have managed this latest wave very well by working with the cruise lines. The fact that Antigua’s vaccination rate is well over 70 per cent provides more room for working within the protocols to ensure that regular business is not interrupted while mitigating spread as much as possible. Q. When do you expect to see cruise ships operating at full capacity again instead of with reduced on-board numbers? A. Towards the end of 2021 we saw an increase in capacities which is very promising. Going forward, I think this would be vary from cruise line to cruise line depending on several factors such as source markets, pricing, cruise lengths etc. With the CDC lifting the conditional sailing order and unveiling of new voluntary Covid-19 program for cruise ships, I believe that 2022 will see cruise lines getting closer and closer to full capacity.
16 Caribbean Maritime | February- May 2022
SAILDRONE
Crowley invests in Saildrone
AMBITION
J
acksonville’s Crowley Maritime Corp is continuing its move into the green energy-related sector while seeking reductions to its own carbon footprint. Already active in the burgeoning offshore wind industry in the US, Crowley is now backing California-based Saildrone, which announced late last year that it had completed a US$100 million Series-C funding. The type of funding is for companies looking for additional finance to help them develop new products or to expand into new markets. Saildrone deploys uncrewed surface vehicles (USVs) to take oceanographic measurements. These autonomous vessels are sent out for up to 12 months at a time and are predominantly powered by
renewable energy. The USVs have a minimal carbon footprint and are equipped with advanced sensors and embedded ML/AI technology to deliver critical insights from any ocean, at any time of year, analyzing climate, mapping seabeds, and generating maritime security data for the benefit of the environment.
Strategy Massimo Messina, Crowley’s vice president of mergers and acquisitions, told Caribbean Maritime that the company sees green energy as part of its growth strategy. Moreover, Crowley has invested in and purchased companies before in its 129-year history. But in Messina the company now has someone with decades of experience
Crowley has operated liner services between the US and Puerto Rico, the Dominican Republic, Haiti, and Cuba as well as Central America for over 60 years. However, Crowley’s current ambition is to be the most sustainable and innovative maritime and logistics solutions company in the Americas by 2025 and to achieve net zero by 2050. It’s recent partnership with Saildrone is but one step on this journey. Crowley has stated: “Our commitment to net-zero emissions is not just good business, it’s the right thing to do.”
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SAILDRONE focused on strategic investments and potential acquisition opportunities. This latest investment stemmed from top Crowley officials already having a relationship with Saildrone’s senior management. Crowley wanted to become investors in the start-up because of its work developing oceanographic technology and Saildrone already operating USVs.
Catalyst Crowley’s prior knowledge of the company coupled with Messina joining in September from BG Strategic Advisors, proved the catalyst for the Saildrone investment. Richard Jenkins, who founded Saildrone in 2012, said: "We are delighted to have Crowley join our team as a strategic investor. Adding high utility ship capability and a global marine service network to Saildrone operations is going to be transformational for our business.” Other investors in this Series-C funding included fellow US firms BOND, XN, Standard Investments, and the trendy Emerson Collective. In total, Saildrone is believed to have raised US$190 million.
Richard Jenkins
We are delighted to have Crowley join our team as a strategic investor. Adding high utility ship capability and a global marine service network to Saildrone operations is going to be transformational for our business”
HURRICANES The biggest challenge in terms of hurricane forecasting is rapid intensification, which can have a huge impact if a storm intensifies just ahead of landfall. Scientists and others need to understand the ocean processes that are occurring as this intensity increases, which means collecting data immediately before and during a hurricane. Saildrone believes it now has the answer and deployed five USVs during last year’s season and each was equipped with “hurricane wings” designed especially for operating in winds over 110 kph and waves of over three meters. Two of these vehicles were deployed from Jacksonville, and three from the US Virgin Islands. The USVs transmitted meteorological and oceanographic data including air temperature and relative humidity, barometric pressure, wind speed and direction, water temperature and salinity, sea surface temperature, and wave height from the eastern tropical Atlantic in real time. In September one USV encountered the Category 4 Hurricane Sam approximately 450 nautical miles NE of Puerto Rico. The vehicle remained in the storm for several hours, experiencing winds gusting over 190 kph and 15-meter waves. The USV survived the storm and continued to collect data until the end of the mission.
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WiMAC TAMARA LOWE
Going places Tamara Lowe
If you are not already aware of Dominica’s Tamara Lowe then this is a name that you are bound to hear a lot more about in the years ahead and especially now that she has just been appointed president of the increasingly influential Women in Maritime Association Caribbean (WiMAC).
20 Caribbean Maritime | February- May 2022
Although I am an introvert, I became a self-taught extrovert and focused on building strong relationships based on trust and commitment”
H
ere Tamara talks to Caribbean Maritime about her life and maritime career and what’s behind her rise to prominence as well as her aims and ambitions now that she has taken the helm at WiMAC*. How does anyone get into the shipping business? For some, of course, it’s pre-ordained or in the family but for Tamara it seems it was pure luck and all about seizing an opportunity. As Tamara explains when she got her first job it just so happened to be in shipping: “I had recently returned from university (in Cuba) with a bachelor’s degree in economics and was determined to get a job. With resumé in hand, and dressed for success, I walked into Tropical Shipping and requested a meeting with the manager, Tom Lafond. It must have been my lucky day because he interviewed me at that moment. I specifically remember him asking why he should hire me, having no experience in sales or the shipping industry. I responded, saying that whatever I do, I do always to the best of my ability. As they say, the rest is history.” And how did Tamara end up going to university in Cuba in the first place? “It was not at all unusual as students were awarded scholarships by the government every year to study in Cuba. What was unusual was how I got the scholarship. At the time, I was eager to go to university to further my education, but I could not afford it. An introvert at heart, I had been asked several times to represent my community in the local beauty pageant and had declined. However, in 2000, the prime minister
at the time announced that the young lady who won this pageant would be awarded a university scholarship. I remember a light bulb going off in my head like the cartoon characters. It is true that necessity is the mother of invention, because necessity turned me into a beauty queen and recipient of a university scholarship in Cuba.” And Tamara maintained her fondness for study after her return from Cuba and this has earned a post-graduate diploma from the UK’s University of Leicester and master’s in strategic management from the University of Derby, also in the UK.
Bilingual Of course, studying in Cuba resulted in Tamara learning Spanish, but it’s surprising that she doesn’t also speak Creole. “I am bilingual in both Spanish and English, and I am particularly proud of this. Completing a bachelor’s degree in economics in Spanish was no easy feat. I do not speak fluent Creole but I do understand a lot of it. In my house as a child, Creole was spoken by my Mom when she was speaking to her friends and did not want the children to understand. It is beautiful to see though, Creole now being taught in schools and being incorporated in our everyday lives in Dominica. I still have hopes of being fluent in Creole.”
Impressive Since joining the company in 2006, Tamara’s career path at Tropical Shipping has been impressive and saw her eventually taking overall charge in Dominica. “The position became available after being employed as the sales representative. For six years, I was like a sponge. I am very curious by nature and questioned everything in an effort to understand processes. I was fortunate to work
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James Davis Photography / Shutterstock.com
WiMAC TAMARA LOWE
with a company that believes in continuous improvement, providing frequent training and opportunities for growth. Additionally, Tropical Shipping encourages diversity and applauded my every accomplishment. Although I am an introvert, I became a self-taught extrovert and focused on building strong relationships based on trust and commitment. I also started teaching part-time at the University of the West Indies (Open Campus) to keep my intellectual juices flowing and to bring back my Spanish mind to the English world. When the position became available, I was scared, but I was ready. I applied and after several face-to-face interviews, was offered the position. I have been in the position for the last eight years. Tropical was also the catalyst for Tamara joining WiMAC. One of Tamara’s mentors at Tropical Shipping, Jennifer Nugent-Hill, had introduced her to the idea of joining the local WiMAC chapter. “I was approached by the national liaison, Bethude Azille, who was passionate about seeing the chapter
officially established and this passion caught on. I loved that one of WiMAC’s goals was to attract more women to the industry with the aim of closing the gender gap. I felt that the maritime industry, as an employment option, was one of the best-kept secrets, and that other women needed to know about it.”
President As with Tropical, Tamara did not let the grass grow under her feet. “When I joined WiMAC, I did not expect to be the president. There was so much to learn and to understand, so that was my initial goal: understanding why there was an under-representation of women in the maritime industry, reading up on journals produced from the industry on diversity and seeking out the women who were pioneers for change in this regard. Prior to being elected as the president of WiMAC, I had served in the positions of president of the WiMAC Dominica chapter, and VP membership and administration on the
22 Caribbean Maritime | February- May 2022
General Council at WiMAC. The other women contesting the position are giants in their own rights and I feel truly honored to have been nominated alongside each. I felt confident though, in my ability to lead with a passion and vision that defied all fear of adversity, and I felt honest in my offer: to focus on building a powerful network of inspired women with the aim of closing the gender gap in the maritime industry. The choice of president was not at all a foregone conclusion, but I hoped that it would be me.” The two years of Tamara’s WiMAC presidency looks like being interesting ones and it’s a sure-fire bet that her already stellar maritime career still has much further to go.
*The International Maritime Organization (IMO) has facilitated the creation of several Women in Maritime professional networks, including WiMAC, for the improvement of gender balance in the shipping industry.
New line up for WiMAC World Maritime University (WMU)
Following the Women in Maritime Association, Caribbean (WiMAC) Annual General Meeting and Elections on the 10 December, members opted to elect a new Governing Council:
Dr Doumbia-Henry In becoming WiMAC president, Tamara has taken inspiration from Dominica’s other great female maritime figure, Cleopatra Doumbia-Henry, president of the World Maritime University. “I had the pleasure of meeting Dr Doumbia-Henry two years ago and I am very proud to call her a fellow Dominican. It was an honor to sit and chat with her and to leave more inspired for having met her. In our efforts to reduce the gender gap and encourage diversity in the maritime industry, it is a fact that representation matters. Dr Doumbia-Henry is, globally, a beacon of hope, that women of like backgrounds can find a home in this male-dominated industry where they can grow, excel, and effect change.
The President:
Tamara Lowe Country Manager, Tropical Shipping Dominica (Dominica).
Thecla Joseph-Charles
The Immediate Past President:
Director of Fisheries & Marine Resource Management, Turks & Caicos (St Lucia).
Dwynette D. Eversley Consultant (Trinidad & Tobago). Vice President of Membership and Administration:
Kemi Linton Trade & Maritime Specialist, Barbados Port Inc (Barbados). Vice President of Public Relations & Marketing:
Tricia King
We, as women in the maritime industry, have the knowledge, experience and skills to be the diversity that we want to see in the industry, but it is only together can we achieve it. My goal is tackling gender-inequality in the maritime industry from the inside out with the main focus of creating a powerful network of inspired women: inspired women who inspire change.” Tamara Lowe
Vice President of Women & Development:
Marine Management Area and Habitat Monitoring Officer, Department of Marine Resources (St Kitts & Nevis). Vice President of Research & Development:
Suzette Balkaran Senior Instructor, Centre for Maritime & Ocean Studies, University of Trinidad & Tobago (UTT) and Energy Efficiency Advisor, Maritime Technology Cooperation Centre (MTCC) Caribbean (Trinidad & Tobago).
Director of Finance:
Ilaisa Lila Business Support Officer, Maritime Authority Suriname (Suriname). Member-At-Large:
Jennifer Nugent-Hill Director of Government & Community Affairs, Tropical Shipping, (Florida/United States Virgin Islands).
Valerie Simpson is the Operations Manager at WiMAC’s Jamaicaheadquartered secretariat. Director, Corporate Affairs:
Vannessia K. Stewart Legal Officer, Maritime Authority of Jamaica.
The mission of WiMAC is to foster the development and participation of women in the maritime sector and contribute to the growth of the industry within the Caribbean region.
www.caribbean-maritime.com 23
OBITUARY ROBERT BELL
The CSA bids a sad farewell to Robert Bell T
he Caribbean Shipping Association (CSA) regrets to announce the passing of Jamaica’s Robert Bell, shipping icon and longstanding Silver Club member. Mr Bell was an innovator in Jamaica, the region and the wider maritime industry. The Association extends its heartfelt condolences to his son Stephen, himself a former CSA general manager and General Council member, his family and friends. Trinidad's former CSA president Rawle Baddaloo has provided a personal tribute to Mr Bell: I first met Robert Bell in the 1990s. He was already a well-established pillar at Seaboard Marine and after a distinguished career at Kirk Line. Seaboard having commenced a service at Point Lisas was going through the normal start-up problems and we spoke regularly on operational matters.
Commanding We would meet in Miami both at the Port and the Seaboard head office. Robert in his smart starched white shirt and his commanding figure reeked of officialdom. However, the twinkle in his eye and the disarming smile was all bonhomie. We became good friends. Our discussions went way beyond the boundary of Seaboard. Socially I will always recall his favorite beverage, Dewars, and his very strict observance of work and play. Robert was a man of sartorial elegance, very down to earth. He was a friend to everyone, and his kindness knew no bounds. He treated my wife and me memorably at the various times we socialized, insisting he drive us around in his Cadillac and of course the
Robert was a man of sartorial elegance, very down to earth. He was a friend to everyone, and his kindness knew no bounds” sojourns at Piccadilly and Squadron. It was with great joy I welcomed Robert to the membership of the Silver Club. Sadly, with the pandemic we were not able to meet recently. I did speak to him a few months ago while he was having a prolonged “meeting” with Kim Clarke (past president of the Shipping Association of Jamaica and managing director the Maritime & Transport Group of Companies) while awaiting young Stephen. Robert has served the region since the 1950s. It is only fitting that there is a Robert
Bell scholarship at Caribbean Maritime University. He has served the Caribbean with distinction. Many islands benefitted from Robert’s assistance in developing proper labor practices and container management systems. He was also a past president of the Shipping Association of Jamaica. On behalf of the Silver Club and my family we all wish you a safe passage to the other side. May you have stern winds and following seas as you go Valhalla. We love you my brother. Rest in Peace.
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TIDEWORKS TERMINAL OPERATIONS
Haiti’s Port Lafito Now live with Tideworks Mainsail 10
Tideworks Technology Inc, a full-service provider of comprehensive terminal operating system (TOS) solutions, has announced that GB Group-managed Port Lafito, has implemented Mainsail 10, Tideworks’ marine terminal operating solution. The go-live of Mainsail 10 at Port Lafito is a fully hosted TOS deployment operating on Amazon Web Services (AWS).
P
ort Lafito is a modern, premier Panamax container port located close to Port-au-Prince in Haiti. The terminal went live with Mainsail 10 in spring 2021, replacing Tideworks Mainsail Vanguard that was previously deployed in 2016. Port Lafito also utilizes Tideworks Forecast® web portal, Spinnaker Planning Management System® and EDI Porter. “The hosted deployment in AWS will allow us to continue supporting Port Lafito’s terminal operations by providing increased access to real-time data and scalable logistics,” said Ignacio Bilbao
García, director of business services, Latin America and Caribbean with Tideworks. “We have cultivated a close relationship with the GB Group throughout the years and this deployment represents further collaboration with the port and our commitment to support the Caribbean supply chain.”
Seamless
ABOUT TIDEWORKS TECHNOLOGY Tideworks is a full-service provider of comprehensive terminal operating system solutions for growing marine and intermodal terminal operations worldwide. The company helps more than 120 facilities run their operations more efficiently and profitably. From optimized equipment utilization to faster turn times, Tideworks works at every step of terminal operations to maximize productivity and customer service. For more information about Tideworks Technology, a Carrix solution, visit www.tideworks.com.
Mainsail 10 is a high-performing TOS that enables seamless integrations with third-party systems and access to inventory tools to increase the flow of cargo through
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TIDEWORKS TERMINAL OPERATIONS
Tideworks' deployment of Mainsail 10 has helped us scale and navigate new complexities. As a result, we’ve seen a surge in growth, and operations at Port Lafito are steady” terminals. The marine TOS provides interactive search tools and easy user customization for optimized viewing, sorting and sharing functionalities. Tideworks’ fully hosted deployment of Mainsail 10 at Port Lafito gives terminal operators access to the benefits of a world-class modern TOS that is optimized by the cloud’s capabilities. This includes a streamlined set up, a cloud-hosted portal that does not require additional hardware, scalable reporting and inventory management. Through the solution, Tideworks also provides automatic software upgrades and remote support.
ABOUT GB GROUP GB Group is a leading, diversified group of industrial and trading companies in the Caribbean, with operations concentrated in Haiti, Dominican Republic, Jamaica, St Maarten and Panama and offices in the US. Comprising 21 companies from seven different divisions including agriculture, construction, consumer goods, infrastructure, energy, logistics and trading, GB Group collaborates with more than 4,000 employees and embraces managers from more than 15 countries company wide. GB Group and its operating companies have strategic alliances and/or partnerships with some of the world’s top business organizations. The company’s current endeavors include the US$200 million Lafito Global project, which includes Port Lafito, Haiti’s first Panamax port and a dry terminal in Port-au-Prince. For more information about Port Lafito, please visit www.portlafito.com.
Tailoring The TOS provider collaborated with key IT and operations managers from the GB Group and Port Lafito during and after the deployment to tailor the solution and optimize the advantages of hosting the application in the Tideworks Cloud. “Migrating the TOS to the cloud was one of the key components to our overall hybrid cloud strategy,” said Steve Zirilli, chief information officer with GB Group. “We rely on Tideworks to provide a best-in-class TOS that can be scaled to support consistent growth at the terminal. Events in the supply chain have put additional pressure on our existing systems and process in place. Tideworks' deployment of Mainsail 10 has helped us scale and navigate new complexities. As a result, we’ve seen a surge in growth, and operations at Port Lafito
are steady. We’ve been able to leverage on-demand information to make more informed decisions and efficiently manage increased throughput.” Tideworks provided all associated implementation services including co-project management, software customization, configuration and installation, integration
30 Caribbean Maritime | February- May 2022
services, user training and go-live assistance that allowed Port Lafito to make sure a smooth operational transition to the latest Tideworks TOS. The company will continue providing ongoing maintenance and support services to GB Group, including 24/7 technical support and software upgrades.
ASTIVIK
One request, many vessels, many solutions
Ballast Water Treatment Systems
I
t’s not a subject that Caribbean Maritime has covered in the past, but as concern for the maritime environment grows year-on-year then Ballast Water Treatment Systems (BWTS) have assumed an even greater significance. Caribbean Maritime contacted Colombian shipbuilder and repairer Astivik for the latest on the subject and how the
shipyard tackles the installation, repair, and maintenance of such systems. First, Astivik was keen to point out the custom-made nature of BWTS so that “no customer is the same, no ship is the same, and no project is the same.” The requirement for the ballast systems of vessels that arrive at different international ports in different areas and
latitudes is already known. The implementation of a BWTS (both for ships already built and for newbuilds) is a clear requirement from the highest governmental agencies that seek to protect the marine environment. For the development and fulfilment of a particular project, in addition to the implementation deadlines, a yard must
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ASTIVIK BALLAST WATER TREATMENT SYSTEM
BALLAST WATER SYSTEMS Ballast Water Treatment System (BWTS) is a system designed to remove and destroy/inactive biological organisms (zooplankton, algae, bacteria) from a ship’s ballast water. Ballast water treatment is still an evolving technology with an ever-growing number of manufacturers involved in the sector. This means that there is limited inservice experience for many of the systems being offered and there is a general understanding that no single system is suitable for all ship types.
the shipyard, or, if the owner wants to acquire the equipment direct from a manufacturer, the design direct from another engineering office and the installation carried out with another supplier or shipyard. This last option presumes cost savings; however, it’s very important to do create a project management framework to determine roles, scope, and responsibilities.
Alliances
consider the delivery times of the subcontracted equipment, and, depending on the manufacturer, these can take up to six months. This is because parts for the BWTS are normally not available in stock but must be specially manufactured to meet the
individual needs of each vessel. Astivik says that the Class Society also has an important role in this kind of project, by checking and approving drawings and calculations.
Partners The different partners involved in the project have different responsibilities in the plan according to the contract set up and it must be defined whether the project will be contracted turnkey with
Astivik is now ready to respond to this growing need, making alliances with BWTS manufacturers and engineering offices, training its workforce in the design and basic operation, installation and connection of the systems. In the yard’s experience, it is very important to check the design in place, check the list of materials available in the market and, in case of any doubt, form a clear dialogue with the BWTS supplier/designer/ship. Achieving a successful project will require the participation of all partners in the process to create the best working environment to complete the work.
Parts for the BWTS are normally not available in stock but must be specially manufactured to meet the individual needs of each vessel” www.caribbean-maritime.com 33
COUSTEAU CURAÇAO
Cousteau chooses Curaçao F
abien Cousteau, the grandson of legendary French ocean explorer and documentary filmmaker Jacques Cousteau and son of Jean-Michel Cousteau, has chosen Curaçao as the initial base for his new Proteus subsea project. As founder of the non-profit Fabien Cousteau Ocean Learning Center, dedicated to protecting and preserving the planet’s oceans, coastal areas and marine habitats, the Frenchman has set his sights of creating Proteus – an underwater world. Proteus aims to build the first in a network of underwater scientific research stations or underwater versions of the International Space Station to create a comprehensive map of the world's oceans. Curaçao is the location of the first habitat, and in September last year Cousteau and a team of experts from the Seattle-based non-profit Map the Gaps and technology experts from echosounder manufacturer R2Sonic spent a week mapping 1,462 acres of reef and 1,077 acres of inner bays in a
marine-protected area. This first phase of the Proteus project will investigate the island's ocean life, and this will serve as the guide to the next steps in the construction and development of the planned subsea station, which will be located at a depth of 18 meters.
Station Cousteau and the Proteus Ocean Group believe the station will be more than four times the size of any known underwater habitat and will feature state-of-the-art labs, sleeping quarters, the world's first underwater greenhouse and a full-scale video production facility for live streaming and educational programming. The underwater habitat will be sustainably powered by hybrid sources. "As our life support system, the ocean is indispensable to solving the planet's biggest problems," Cousteau said. "Challenges created by climate change, rising sea levels, extreme storms and viruses represent a multimillion-dollar
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s_bukley / Shutterstock.com
risk to the global economy. "Adding that despite oceans representing more than 99% of the world's living space, "only 5% has been explored to date. The knowledge that will be uncovered underwater will forever change the way generations of humans live up above the water."
Project The planned project has also been welcomed locally and seen as something of a coup for Curaçao. "As an island recognized worldwide for our pristine waters and diverse marine life, we are honored to have Curaçao as home to Proteus," local tourism board official Hugo Clarinda said. "Curaçao is passionate about the health of our oceans and will continue to be advocates of this type of research and projects of this magnitude."
BLUES & BLUES MAKANA FERRY
New ferry service for St Maarten A new and upgraded triangular fast-ferry service between St Maarten, St Eustatius and Saba started in December by longstanding Anguillan operator Blues & Blues. Using the high-speed 72-foot catamaran Makana, reconfigured to carry up to 149-passengers, the ferry is improving connectivity between the three islands and offers greater competition to existing air services. The ferry provides same-day connections from Saba (Fort Bay) and St Eustatius (Gallows Bay) to St Maarten (Bobby’s Marina). Trips take around 45 minutes between Saba and St Eustatius; 75 minutes between Saba and St Maarten; and 85 minutes between St Eustatius and St Maarten.
The new ferry service is carried out under the terms of a public private maritime connectivity agreement. A subsidy for the ferry service comes from the Ministry of Infrastructure & Water Management (I&W) in the Netherlands, which has granted EUR 2 million for the first two years to realize what is described as a sustainable Public Service Obligation (PSO) agreement.
A weekly ferry service from St Eustatius to St Kitts will be added as soon as local Covid-19 restrictions allow”
Weekly Meanwhile, a weekly ferry service from St Eustatius to St Kitts will be added as soon as local Covid-19 restrictions allow. Until it does, additional connectivity will operate out of St Maarten. Unfortunately some more onerous Covid-19 entry protocols introduced in both Saba and St Eustatius managed to disrupt the first month’s operations.
BLUES & BLUES For over 30 years Blues & Blues, owned by Samuel “Blues” Connor has provided ferry services between Anguilla and St Maarten, and cargo shipping services between Anguilla, St Maarten, Saba, St Eustatius, and St Kitts.
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INSPIRING CAPTIVATING INFORMATIVE
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roundup Caribbean Maritime
News from around the Caribbean
1
Aruba
Houston-based Eagle LNG has completed a long-term supply contract to establish an LNG regasification terminal in Aruba. Eagle LNG, owned by US private equity firm Energy & Minerals Group, has signed the deal with Water- en Energiebedrijf Aruba (WEB) – the local power and water utility. The firm said that the investment amounts to around US$100 million. “The project confirms Aruba’s growing importance as a regional hub and creates new economic pillars,” Eagle LNG said. The Aruba LNG terminal will serve as WEB’s LNG receiving and regasification terminal for its Balashi power plant and would be located at Refineria di Aruba, in San Nicolas. Eagle LNG will supply LNG to the facility which will store and regasify the fuel and deliver it to the WEB power plant.
3
Curaçao
After four years as managing director of Damen Shiprepair Curaçao, Lodewijk Franken has stepped down from his position at the Caribbean’s largest shipyard. Prior to joining Damen in 2017, Franken worked for eight years as both business development and project manager for the Netherlands’s Bluewater Energy Services – owners and operators (among other activities) of a fleet of FPSOs. Damen Shiprepair & Conversion took over the management in 2017 of the Curaçao Drydock Company, which was established in 1959.
2
Belize
The Department of the Environment (DoE) in Belize has blocked a major US$ 200 million cruise port development and dry bulk terminal expansion proposed by Waterloo Investment Holdings (WIH). WIH is unhappy with the decision and now plans to appeal the decision by the DoE. At least two other privately owned cruise terminals are currently underway in Belize – the US$ 90 million Port Coral, near Belize City and due to open this year, and Port of Magical Belize at the mouth of the Siburn River – both of which have been given environmental approval by the DoE. CEO of Waterloo, Stewart Howard stated: "Despite this disappointing
4
setback, Waterloo remains fully committed to this project. Waterloo has already spent in excess of US$ 5 million on the development of its cruise and bulk cargo facility in Belize and will deploy such resources as are necessary to ensure that its project, which was encouraged and promoted by the Government of Belize, is brought to fruition."
Belize City
Colombia
Colombian gas distributor Promigas plans to increase regasification capacity at its Cartagena FSRU-based LNG import facility. Sociedad Portuaria El Cayao (SPEC LNG) operates the terminal in which Promigas has a 51 percent stake while Dutch bulk liquid storage specialist Vopak holds the balance. The 170,000-cbm Höegh Grace FSRU, owned by Bermuda’s Höegh
LNG Partners and managed by parent Höegh LNG, started serving the LNG import facility back in 2016. It supplies regasified LNG to the national network via a 9.2km pipeline. The imported LNG is unloaded at the FSRU, then stored and evaporated to natural gas before it is delivered to the transmission network for local power plants. The terminal currently has a throughput capacity of 4 billion cubic meters per year. But Promigas says it plans to raise the capacity to 12.75 million cubic meters per day in 2022 to cater to a growing domestic demand and even increase further to 17 million cubic meters per day by 2025. The firm said it has already begun technical studies to determine the feasibility of the expansion.
www.caribbean-maritime.com 37
roundup Caribbean Maritime
News from around the Caribbean
Dominican Republic 5
To further develop the Dominican Republic’s logistics sector, Haina Logistics Hub (HLH) has formed a strategic alliance with national airports operator Aeropuertos Dominicanos Siglo XXI (Aerodom) to streamline the processes and operations between Haina Logistics Hub (HLH) and Santo Domingo’s International Airport of the Americas and the nation’s main air cargo gateway. This MOU signed by HLH’s Erik Alma and Aerodom general director Mónika Infante Henríquez seeks to promote the country as a worldclass logistics hub. Discussions between Aerodom and HLH members have identified and begun to take action to promote efficiencies and synergies for both areas of logistics activity. HLH comprises 10 certified local firms: Caribtrans, Congela SA, E T Heinson, Global Storage, Haina Bonded Warehouse, HIT Logistics, Mardom, Nodo, Rodemsa and Schad Logistics.
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6
Jamaica
Following the completion of modification work at Damen Shiprepair Curaçao, the 170,000-cbm Höegh Gallant FSRU has started serving New Fortress Energy’s offshore Old Harbour facility in Jamaica. New York-listed Höegh LNG Partners, is a limited partnership formed by Höegh, which has chartered the FSRU for ten years to New Fortress Energy. Completed in 2019 and located 3.6 miles offshore in Portland Bight, NFE’s Old Harbour facility features an FSRU and underwater natural gas pipeline to the shore. The 125,000-cbm converted FSRU Golar Freeze currently serves the facility. It supplies regasified LNG to Jamaica Public Service Company’s 190-megawatt power plant in Old Harbour in Port Esquivel and NFE’s 150-megawatt co-generation power plant at Jamalco in Clarendon.
7
Jamaica
The Ocean Cleanup, which has been active in Jamaica for some time, is now looking to instal more of its floating garbage Inceptors around the island. During the first half of 2022, the cleanup will test a new combination of Interceptor Barriers and Interceptors 008, 009 and 010 in three gullies close to Kingston – Kingston Pen Gully, Barnes Gully, and Rae Town Gully. Jamaica is already the location for an Interceptor. The Ocean Cleanup says: “Eleven small streams (drainage canals, locally known as gullies) together emit an estimated 947,000 kg of plastic into the Caribbean Sea every year. Most, if not all, of these gullies, turn out to be too small for an original Interceptor.” In 2020, the Ocean Cleanup was awarded US$ 1 million by the Benioff Ocean Initiative to stop plastic from reaching the Caribbean at Sandy Gully in the heart of Kingston.
Louisiana
Louisiana’s Plaquemines Port, Harbor & Terminal District (PPHTD) and global operator APM Terminals have announced a Letter of Intent. This will involve APM Terminals becoming the operator of the newly planned container terminal and intermodal rail facility while Plaquemines Port and its partners will manage the funding for the infrastructure development, investment, and ownership of the port. The facility is in the early stages of development as a 15.24-meter depth, state-of-the-art container terminal on the Mississippi River just 50 nautical miles from the Gulf of Mexico. Already one of the busiest ports in the US,
38 Caribbean Maritime | February- May 2022
the gateway will cater to exporters and importers who could tap into the multimodal routing options of rail, truck, inland marine and air. The terminal will be eco-friendly, powered by a combination of natural gas and electricity, encompassing up to 1,000 acres and 2,500 meters of Mississippi River frontage. PPHTD Executive Director Sandy Sanders said: “Our vision is to create a new port with an entirely new supply chain network into the US. We will have multiple routing options to inland markets which give supply chain planners the resiliency and contingency layers essential
to manage future supply chains effectively. We have also carefully selected our partners, APM Terminals, American Patriot Holdings and Louisiana 23 Development Company who share our vision to engineer a logistics business model that attracts private investment dollars and new cargo to Louisiana and strategic inland markets.” The port and connecting infrastructure will be built 4.8 meters above sea level. Phase One of construction is expected to last two years and will allow the handling of 22,000-teu class vessels with options to expand capacity as needed.
9
Florida
Port Manatee has reached agreement for Regional Rail LLC to operate its seaport-owned shortline railroad through at least 2036, with options through 2051. Under an agreement that took effect in early December, Port Manatee Railroad is to be operated as a subsidiary of Kennett Square, Pennsylvania-based Regional Rail, which already operates seven other US short-line railroads, including three others in Florida, with more than 880 km of track. Port Manatee Railroad, which began operation by the port in 1970 – the same year the seaport opened for business – encompasses more than 11 km of tracks directly connecting with a main line of Jacksonville, Florida-based CSX Transportation. Port Manatee Railroad operates a pair of energy-efficient diesel-electric locomotives and offers capacity to accommodate 300 railcars.
Manatee County Port Authority
“Port Manatee is experiencing record growth, including a 53.3 percent rise in containerized cargo trade for the fiscal year ended 30 September, while reaching an all-time-high in total cargo tonnage,” said Carlos Buqueras, Port Manatee’s executive director. “We envision collaborating with Regional Rail in increasing rail usage for current seaport customers and expanding rail service options to attract new customers and commodities to Port Manatee.”
Port Manatee
10 The Bahamas Nassau Cruise Port has confirmed that the Bahamas Investment Fund (BIF) equity offering, which sought to raise US$25 million to support the cruise port redevelopment project, proved successful. The public offering was oversubscribed due to overwhelming support from Bahamians. Over 3,500 investors applied for shares. “This equity offering was truly a once-in-a-lifetime investment opportunity, and we are thrilled that so many Bahamians embraced it and affirmed their confidence in the project through their participation,” said Mike Maura Jr, CEO of Nassau Cruise Port. “We are grateful to everyone who chose to put their hard-earned dollars into this project. Those who invested have not only contributed to the redevelopment of the port, but more broadly, are supporting the growth and future of our country.” “Our projections show that 2022 and 2023 will be very successful for the port, and beyond that, our outlook is extremely positive. Nassau Cruise Port is well-positioned and prepared
Nassau Cruise Port
for growth, which our investors will certainly benefit from.” Mr. Maura Jr added: “The Nassau Cruise Port project’s success in raising US$244 Million in debt financing during this pandemic and this BIF US$25 Million equity offering highlight the great value proposition of our Bahamas.” Funds will be used to complete the redevelopment of recreational, entertainment, shopping, and food and beverage spaces; to complete marine construction work; and to support the development, design, engineering, and inspection related costs of the project. The redevelopment of the port will be completed by the third quarter of 2022.
11 Marine Assurance Leading global marine assurance and vetting systems organisation MIS Marine has announced that Gonzalo Mera Truffini has been appointed as Americas Executive Manager to
Gonzalo Mera Truffini
lead the company’s presence and customer support in the Americas. The appointment sees Gonzalo Mera Truffini join as MIS Marine’s first representative located in the Americas, where he will support MIS Marine’s customers in the region, as well as leading MIS Marine’s new business activities and building new relations. MIS Marine provides the international shipping industry with robust marine assurance and vetting software solutions through the use of marine data and advanced IT systems.
www.caribbean-maritime.com 39
roundup Caribbean Maritime
News from around the Caribbean
12 Puerto Rico
13 Trinidad &
The Puerto Rico Ports Authority (PRPA) has sought proposals from qualified developers and operators that have the ability and capacity to undertake the leasing, design, construction, financing, and development of a superyacht marina at the Port of San Juan. Proposals had to be submitted by mid-January.
has substantial space available for developing buildings and facilities for superyacht use given that there are no permanent tenants on the premise currently. The PRPA has the goal of making Puerto Rico the premier destination in the Caribbean for luxury vessels, while fostering the further growth of the service and tourism industries in the Island. A megayacht marina in San Juan is expected to generate substantial economic impact on the local economy. The goal of the RFP is to obtain proposals for the project so that the marina site will provide services, facilities and amenities for the yachting community.
The area that is available for development is approximately 23,000 square meters and is located at Pier 9, including the docks, piers and moorings necessary for such a project. Pier 9 is currently used as both a cargo facility and to berth superyachts and, according to the request for proposals (RFP),
14 Florida
15 Guyana
PortMiami Director Juan Kuryla stepped down from his role on 17 January to join Norwegian Cruise Line Holdings (NCLH) as senior vice president port development and construction management. Deputy port director Hydi Webb is acting as interim port director while PortMiami owners Miami-Dade County conduct a search for Mr Kuryla’s successor.
Guyana continues to make progress with major plans to develop a deepwater port (see CMs passim). The Guyana government says the development of a deepwater port will not only benefit the newly oil-rich nation but also neighboring Suriname, Brazil and even French Guiana (Guyane). “It’s a project that is across borders… we have started discussion with both Brazil and Suriname and all three countries are fully committed,” says Guyana President Irfaan Ali who has been busy in recent months promoting the deepwater port concept, including during a visit to Dubai’s ongoing Expo 2020. President Ali is looking for project funding from the UAE.
PortMiami
TetKabrit / Shutterstock.com
Mr Kuryla heads up the NCLH’s commercial development as well as its construction and private island operations teams. He served as PortMiami as CEO and director for seven years, in charge of operations and development.
40 Caribbean Maritime | February- May 2022
“Abu Dhabi Port is looking at leading the studies to come up with a technical evaluation and then financial evaluation… the initial assessment is one of great optimism,” President Ali said.
Tobago
Caribbean Maritime is deeply saddened to learn of the passing of one of our founders of Trinidad’s Gulf Shipping, Shirley Voisin. ‘Mrs V’, as she was fondly known, will be lovingly remembered as a devoted wife, mother, grandmother, sister, aunt and friend, and a dedicated and inspirational leader at Gulf Shipping. Together with her husband, Lloyd Voisin, she grew Gulf Shipping from the company’s infancy to the entity that it is today.
Demerara River, Guyana
The President, who has held discussions with investors in Dubai and other parts of the Middle East and had constructive talks with Khalifa Port (Abu Dhabi’s flagship gateway), said there is strong support for the project. “We are serious about Guyana, and I promise you we passed the time of thinking, now we are in the implementation stage,” says chief executive officer of Abu Dhabi Ports Mohamed Juma Al Shamisi. Guyana, Suriname, Brazil, and French Guiana are expected to come together in 2022 to take discussions further. All are part of a proposed natural gas pipeline to Brazil.
16 Florida Operating from the Port of Palm Beach to Freeport, Bahamas Paradise Cruise Line (BPCL) is to be rebranded as Margaritaville at Sea. As a result, BPCL’s 1991-built Grand Classica will be refurbished in March as part of a multi-milliondollar upgrade of its 658 cabins and staterooms and will be renamed Margaritaville at Sea Paradise. The first cruiseship will operate from April and offer the same two-night itineraries as before. Oneil Khosa, CEO of Bahamas Paradise Cruise Line, will now serve
17 Jamaica as CEO of Margaritaville at Sea says: "Guests will get authentic culture, entertainment, and food en-route to a beautiful destination in Grand Bahama Island. Margaritaville at Sea is a floating island vacation at sea that brings together the brand's hospitality and resort experiences with the ability to escape and see the world. The inaugural ship, Margaritaville Paradise, features 658 casual-luxe cabins with nautical details and colors influenced by the sea, sand, and sky.
Kingston Wharves Ltd (KWL) has announced a US$ 60 million plan to expand its terminal and logistics operations. The money will cover three projects: the US$ 30 million redevelopment of KWL’s 183 meter length Berth 7 (and follows work on Berths 8 and 9), US$ 25 million for the construction of an integrated logistics complex and the commission of a new Gottwald mobile harbor crane (the seventh in the fleet). KWL CEO Mark Williams says: “The company’s latest initiative would work to strengthen the case for Kingston to provide a well-managed alternative to the congested ports elsewhere in the hemisphere and to promote the company’s facilities as a nearshoring destination.” Adding: “When completed the new logistics complex will enable KWL, and by extension Jamaica, to begin taking advantage of near-shoring opportunities, which are emerging due to shifts in the global supply chain, as companies look for warehousing and logistics solutions close to their target markets.”
18 Puerto Rico
Felix Mizioznikov / Shutterstock.com
The Puerto Rico Ports Authority (PRPA) has signed another sister port agreement, this time with PortMiami. This is the second such signing in the past 12 months, firstly with Jacksonville Port Authority (JAXPORT) and now with PortMiami. The PRPA says it continues to strengthen its relationship with ports that have the most commercial trade and connection with Puerto Rico. Port of Palm Beach
www.caribbean-maritime.com 41
ACMF ANCHOR AWARDS 2021 The American Caribbean Maritime Foundation's glittering annual Anchor Awards were held at the Fort Lauderdale Yacht Club in early November. The event raised funds totaling US$ 640,000 for scholarships, grants and computers for cadets at the Caribbean Maritime University. Honorees at the event comprised TOTE's Alyse Lisk and the late Harry Maragh of Lannaman & Morris.
42 Caribbean Maritime | February- May 2022
RUSSBROKER CARIBBEAN MARKET REVIEW
Changing market structures
Container Market The overall container charter market continued its upward momentum in late 2021. Although some indices such as the Contex showed a negative trend from early November until the end of December those numbers did not represent the charter market realities very well. The Contex, for example, provides values for, depending on vessel size, 6, 12, or 24 months durations. Those short periods though were only fixed by freight forwarders who acted on the crazy freight rates between Asia and Europe or the US. Once container freight rates took a pause in October, previously seen dix digit rates for ships down to 1,700 TEU disappeared.
This development caused indices to fall but earnings on the standard period of three years, which most owners wanted to fix anyway, did not fall. Those short-term fixtures for new operators however helped to drive the market considerably as owners were provided with extra leverage against the big operators and many times one could fix short term of just a few months at extraordinary money and then still lock in long-term business afterwards. Apart from the direct earnings these extra loaders on the East-West lanes also reduced the number of vessel available for normal intra-regional and feeder services. We counted about 40 fixtures of ships
between 1,000 and 3,000 TEU which traded alongside the 24,000 TEU giants in 2021. Extreme freight rates on the East-West trade lanes has also caused some NorthSouth connections to lose ships. With the current lack of tonnage many operators were unable to fill all their schedules and pulled vessels to the most profitable trades. This development could also be observed for Americas-related trades as the number of vessels deployed shrunk by about 7% during the last four months of 2021. Inefficiencies are still responsible for this boom. Many vessels are sailing behind schedules due to low port productivity and one measure to catch up has been to skip calls. Ports on the US East Coast have been
www.caribbean-maritime.com 43
RUSSBROKER CARIBBEAN MARKET REVIEW
particularly affected by this situation. On the one hand, if ports are being omitted by the big vessels, then this throws off feeder schedules on the other hand and also increases feeder volumes as containers still have to be moved to their final destination. Just pure waiting time due to congested ports additionally fixes a lot of capacity. The prime example of the port of Los Angeles/Long Beach had reached over 100 ships waiting during the fourth quarter of 2021. Days spent sitting idle however greatly varied with the carrier. Some of the established players barely faced any delays whereas the Chinese newcomers spent seemingly endless amounts of time sitting idle. Dry docking for class renewal has always been an issue for Caribbean trading vessels as in the past maintenance in the Americas would, on average, take longer and be more expensive. The coronavirus-induced workforce and spare parts problems as well as the extremely high charter rates however have somewhat changed the picture. From the 13 ships that were already trading in the Americas when a yard stay was due in 2021, seven remained in the Americas and spent on average about 40 days for class works. The six vessels that went to Europe for their dry docking took on average almost 90 days with one ship even reaching 125 days. Those figures include the positioning trips. Assuming a daily rate of US$ 20,000 the fifty extra days difference cost the owner US$ one million! Even when comparing the pure yard times without the positioning the Caribbean drydocks, especially at Grand Bahama and Curaçao, provided some of the fastest times of just two to three weeks. Not only is this a big cost factor for owners but oftentimes the difference for operators is even more important as there are no short-term replacement vessels available at all and schedules get thrown around every time a ship is missing. Three coping strategies have evolved among the carriers in order to deal with this high charter rate situation. Firstly, buying ships has been very popular and one major
operator in particular has been buying enormous amounts of second-hand ships. This market player has bough around 75 ships up to 3,000 TEU (plus plenty more larger ones) in just over a year. During the last quarter of 2021, after purchase opportunities dried up due to lack of supply, the owner even started buying MPP vessels with relatively good container intakes. Other carriers also purchased used ships but on a more selective basis and with a higher focus on quality tonnage with special features such as ice class, reefers, etc. Secondly some charterers simply offer longer periods. This has been practiced by two operators, one Americas specialist and one global player, who both have no own vessels but convinced owners with three years when two years were still the norm. The last approach has been to pay higher rates but only for shorter periods. One global player is apparently betting on a falling market within the next 12 months and tries, wherever possible, to fix ships only for maximum one-year periods. Those charters are then costing up to 50% more than the standard rate and for some owners it has already played out quite well as the market has been going up for over a year by now. For the very small carriers with a handful of ships or less the air however is getting relatively thin. As periods are now reaching far into an uncertain future most owners only want to fix accounts with very good credit ratings or they demand considerably higher rates. One operator with just a single ship service to the Caribbean islands lost this vessel in January 2022 as it has been sold and fixed to a global mainliner. So far it is still uncertain whether a replacement ship can be found. The overall vessel shortage is also forcing goods to find other markets or other means of transportation. There had been, for example, a seasonal service between Morocco and St Petersburg, Russia catering to citrus exports during the northern winter, every year. Usually, two operators would employ anything between three to eight ships, 700 to 1,300 TEU with ice class
44 Caribbean Maritime | February- May 2022
After now 18 months of increasing markets the signs of a prolonged boom market are getting stronger” and good reefers. As not enough suitable ships could be found this season, there is just one joint service which employs just three ships and only connects Morocco to the UK, Rotterdam and Hamburg. In general, a lot of breakbulk cargo which had found its way into containers during the last couple of years has been de-containerized again and moved backed into MPP vessels. Operators who are trading to Cuba and Venezuela are finding it almost impossible to source charter tonnage to those destinations as owners do not want to face sanctions, delayed hire payments or just the generally difficult situation and when many other business options involving easier
trades are around. The main operators with own tonnage have largely resorted to using those ships. After now 18 months of increasing markets the signs of a prolonged boom market are getting stronger. Sky-high container spot freight rates have now been around for long enough not only for the carriers to make tremendous profits during 2021 but also to push up contract rates in order to secure very good earnings in the next few years. And charter rates are unlikely to go down as well soon as tonnage availability for 2022 is already very low. Out of all the vessels in the size range 500 to 1,300 TEU, currently trading in the Americas, only about ten are still up for a fresh charter in 2022. In general, and for all vessel sizes charter rates now vary quite widely depending on the agreed period and how far in advance a ship is being fixed. Another structural change occurred in the 2,500 TEU segment. For many years the 2,500 TEU high reefer ships have been very popular with the traditional reefer
operators who only cater to fruit cargoes. But at the current container ship charter rates pure reefer ships have become more competitive again. One transatlantic service was switched back from container to reefer and thereby freeing three container vessels, one of which was sold to an enduser, one was fixed with yet unknown trade and the last one went to Asia for docking and has also been already fixed again to a major operator for three years at US$ 40,000. Another fruit producer which had been testing a 2,500 TEU container vessel for North Europe to West Africa trade also redelivered the ship at the end of its charter in December. Overall charter rates had been stagnating since October, with three-year periods ranging between US$ low-to-mid 30,000, two years at mid- US$ 40,000 and anything shorter than 12 months would go for US$ 50,000, 60,000 or even more, depending on the exact duration, location, and vessel type. Towards the end of the year another push in rates, however, occurred with high reefer tonnage in this size segment going towards US$ 40,000 for 36 months. Modern eco type ships were the only ones able to achieve more than three years with up to 40 months at US$ mid/high 30,000. Activity in the size range of 1,100 to 1,700 TEU was pretty low during the last months of 2021. Only around ten fixtures were concluded with 1,100 TEU going for US$ low 20,000, 1,300 TEU high reefer for US$ mid 20,000 and 1,700/1,800 TEU for US$ high 20,000-to-30,000 thousand levels. All for three-year periods. Activity was so low as most open vessels have simply been bought by end-users.
Ships below 1,000 TEU were the hardest to get. After the summer two 500 TEU gearless ships secured two-year charters between US$ 9-10,000, by the end of December an un-celled 350 TEU vessel was able to fix three years at around US$ 9,000. There had been considerable interest in the vessel from European charterers and the owner was able to capitalize on the strong demand with a very long-term charter for such a size vessel. In the smallest size range quite a few carriers were looking at vintage ships that had not been trading containers for years but especially in Europe several such ships were reequipped with lashing material and started trading containers again. One Caribbean operator even thought about reconverting a popular 500 TEU type, but it was an almost 30-year-old-ship which had its holds altered to trade bulk cargos for the last seven years. Two ships of the RW850 design which are able to carry 2.60m over-width and 45ft extra-long containers in all positions were fixed for Asia-Europe trade. They came ex a charter to a European feeder and short sea operator but as the number of those vessels is limited, so the negotiating power for the owners towards their US counterparts increased, letting the most recent fixture to come in at mid US$-20,000 levels. Those vessels are very important the Americas-to-Caribbean trades for two US-based operators.
Macroeconomics At the moment the economic situation only plays a minor part in the demand for container vessels. The logistical inefficiencies are just binding in so much tonnage
CONTEX CONTEX
12 MONTHS, 1100
12 MONTHS, 1700
12 MONTHS, 2500
Sep-21
3128
36051
47882
70447
Oct 21
3238
36748
49293
73161
Nov-21
2809
32358
43444
63689
Dec 21
2609
30056
42450
58181
www.caribbean-maritime.com 45
RUSSBROKER CARIBBEAN MARKET REVIEW
capacity that increased demand for trade could not be covered and a reduction in volumes would just cause ships to move to other areas around the globe. Globally the economic recovery has been fairly strong in 2021 and some countries in the Caribbean/US Gulf area are posting solid numbers. The US showed an annualized growth rate of about 6% in the fourth quarter, Colombia posted a very good 9-10% for the whole of 2021, Mexico’s economy likely grew by around 5.5% and the Dominican Republic beat expectations with annual growth of 11-12%. However, as tourism expanded by 47% in the Caribbean in 2021 and is forecasted to reach 70% of its 2019 levels in 2022 the new Covid-Omicron mutation, and with it new travel restrictions, is threatening that recovery. Additionally, the relatively low vaccination rates in many Caribbean nations will likely not help. Although the world has bounced back remarkably quickly some countries in the area will take years to fully recover and the current lack of finance for a number of Caribbean countries will manifest this longterm effect. Cuba’s economy for example contracted by 11% in 2020 and only made up 2% in 2021 with an expected expansion of 4% in 2022; thus, leaving the country still well below pre-Covid-19 levels even at the end of this year.
Sale and Purchase of Caribbean Container Tonnage As mentioned before, charterers were the main buyers during the last couple of months and of course prices have strongly increased with the shrinking number of available vessels and ever longer periods and higher rates. The Zhejiang 950 design illustrated this quite nicely. The vessel type is popular in the Caribbean due to its relatively compact dimensions, reefer plugs and gear. About a year ago five out of the 24 ships were owned by carriers; this has changed to 10 out of 24 by early January 2022. Prices also multiplied; going up from US$ high 2
SELECTED CONTAINER FIXTURES SUB 1,000 TEU - CELLED Dec 21
Contship Eve 12-14 months US$ 28000 966 TEU / 604@14 / 18on39 / 252rp
p/d
1100 TEU - GEARED, CELLED Nov 21 Asian Trader / Caribbean Feeder Services 35-37 months US$ 21750 1118 TEU / 700@14 / 20on42 / 220rp
p/d
1300 TEU - GEARED, CELLED Oct 21
Nov 21
As Fiorella / Cosco Container Lines
35-37 months
1296 TEU / 958@14 / 20on45 / 390rp
As Floretta / Crowley
35-37 months
1296 TEU / 957@14 / 20on47 / 390rp
US$ 26000
US$ 26500
p/d
p/d
2500 TEU - GEARED, CELLED Dec 21
Majestic / CMA CGM 2339 TEU / 1780@14 / 19on48 / 500rp
million (for 2007 built units) at the end of 2020 to about US$ 19 million (although for 2011/2012 built units) by the end of 2021. Operators also picked up a couple of nice high-reefer 1,300 and 1,800 TEU ships which had already been trading in the area. Oftentimes traditional tramp owners would not even bid on these units as they knew that they would have little chance to compete with the end-users. Newbuilding orders continued in the fourth quarter as well. Most ships ordered are still for liner accounts and either very large or of designs intended for intra-Asia trade. There are several local operators interested in buying new vessels but one of the issues has been that, on the back of extremely good demand, the Chinese yards prefer to build the standard designs. As a consequence, prices quoted for specially configured vessels (gear, reefers, oversized containers, etc) are exceptionally high. Prices shown for sophisticated 1,100 or 1,300 TEU ships have now gone well beyond the US$ 30 million mark. One significant order though was
46 Caribbean Maritime | February- May 2022
38-40 months
US$ 37000
p/d
placed by a global feeder operator who will receive eight ships of 1,100 TEU by 2024 which could very well be suitable for Caribbean trade. Of course, scrapping activity has been non-existent. Even a 25-year-old 1,100 TEU ship which had been arrested in Greece for almost four years was sold at auction in December for more than double its scrap value.
The
last word
by Gary Gimson
The container It’s place in history Sometimes the best inventions are the simplest. And arguably the finest example of this in the modern age is the humble shipping container which to the surprise of some was recently voted the greatest invention of the 20th century.
I thought there must surely be other more worthy contenders for such an accolade; manned flight, the personal computer, cellphones and a whole host of other clever ideas that have reshaped humankind during the previous century. But the survey has surely got it right and the shipping container probably is, after the invention of the
wheel, probably the greatest and simplest development of all time. But unlike the wheel, we know exactly who to thank for the introduction of the container and here we pay homage to trucker Malcom Purcell McLean and acknowledge his sheer genius in bringing his simple concept to
www.caribbean-maritime.com 47
the last word
Malcom McLean Maersk Line | Wikimedia Commons | CC-BY-SA-2.0
market in the mid-1950s and then making it work. But like so many “inventions” it takes someone to adapt or re-purpose an existing product into something more user-friendly. In McLean’s case he used his brilliance to see that an already clunky transport method operated by the US military could be the basis for something commercial. He also took a massive gamble in borrowing US$ 22 million to launch his first container service. McLean’s early efforts at containerization look almost comical now. In 1956 he plowed this money into buying and converting four T2 oil tankers which were then loaded with just 58 35ft boxes for his pioneering “seabridge” service between Newark and Houston. Somewhat surprisingly, these WWII-era tankers still transported oil in addition to the containers McLean had lashed on deck. After launching and establishing his US Gulf service, McLean soon turned his attention to the Caribbean. It’s perhaps forgotten that the Caribbean was very much at the forefront of McLean’s container revolution and boxes were introduced into the region long before unitized cargo became
commonplace on most major global trade routes. McLean’s Pan-Atlantic Steamship Corp (later known as Sea-Land Service) started a container service between the continental US and Puerto Rico as far back as 1958. By this time, he had already moved on from tankers to converted cargo ships. So, fitted for the first time with revolutionary cell guides, the 226 TEU vessel Fairland arrived in San Juan and became the first container ship to call at a Caribbean port. By coincidence, and some eight years later when the vessel arrived in Rotterdam, the Fairland would also become the first container ship to visit a European port. Puerto Rico quickly embraced the container concept and by 1963 around 40 per cent of San Juan’s dry packaged goods were moving in boxes and a full three years before the Fairland would make its maiden crossing of the Atlantic. McLean who started off using his 35ft boxes for his “seabridge” service would eventually in 1965 see containers internationally standardized into either 20ft or 40ft sizes. A move he fully supported. Apart from in Puerto Rico, the arrival of the container hardly received a warm welcome across the Caribbean. In fact, the handling of boxed cargo was fiercely resisted by many during the late 1960s
48 Caribbean Maritime | February- May 2022
– especially among dyed-inthe-wool traditionalists and organized labor. It was this prickly opposition to containerization that proved the catalyst for the formation of the Caribbean Shipping Association (CSA) as port authorities and shipping folk came together across the region to resolve the simmering labor issues created by the unitization of cargo (See Caribbean Maritime issue 41). This friction was partly the reason why it would be 1974 before trade between the Caribbean and Europe was fully containerized. This involved Caribbean Overseas Line (CAROL) – a consortium comprising Hapag-Lloyd, the UK’s now defunct Harrison Line, French carrier CGM (now CMA CGM) and Dutch line KNSM, which was later to become part of Nedlloyd – deploying a
fleet of what today would be woefully under-sized 1,200 TEU vessels. Despite his miraculous once-in-a-generation invention it’s perhaps sad that outside the comparatively narrow confines of the shipping sector the name of Malcom McLean is not as widely known as, say, fellow innovators Thomas Edison, Alexander Graham Bell or even Tim Berners-Lee. But then again, shipping never does seem to get the credit it deserves.
Norman Mineta Wikimedia Commons | Public Domain
His idea for modernizing the loading and unloading of ships, which was previously conducted in much the same way the ancient Phoenicians did 3,000 years ago, has resulted in much safer and less-expensive transport of goods, faster delivery, and better service. We owe so much to a man of vision.” Norman Mineta, Former US Transport Secretary at the time of McLean’s passing in 2001
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