Page 23 - Caribbean-Central America Profile 2018

REGIONAL

CARIBBEAN-CENTRAL AMERICA PROFILE 2018

In Latin America and the Caribbean, the SEA TRANSPORT for the ports on the U.S. east coast. One of the
air industry generates $167 billion in Maintaining healthy ports are not only foreseeable impacts of this phenomenon is the
GDP while connecting 385 cities in the region crucial to maintaining economic resilience, concentration of port activities in a more limited
by air. Every year, 2.6 million flights operate considering that over fifty percent of the number of ports. In such a case, recovery will
in Latin America and the Caribbean and the air region’s economic assets, including seaport be effective for a few port sites only and not for
industry supports 5.2 million jobs. However, in facilities are concentrated in coastal areas, all sites.
the past few years, Latin American airlines have but, it is also essential for containing losses
faced a harsh environment, with weak home following a disaster as damage to ports can Oil remains the main transported good. In 2016,
markets and currencies, but that is starting to cripple response, recovery and rebuilding the low price of oil, largely stimulated by the
turn around and some recovery is expected in activities. The Association of Caribbean States’ diversity of production encouraged importers
2017. A net profit of $0.8 billion is forecast in (ACS) Study on Ports and Maritime Strategies to increase stocks. In the other sectors, freight
rates are historically low. Analysts estimate
2018, following losses of $1.6 billion in 2015 for the Greater Caribbean, suggests that small
and profits of $0.6 billion in 2016. island ports, otherwise referred to as Tier 3 that recovery in the bulk sector should occur
gradually and slowly from 2017, only if demand
ports, may be more vulnerable to the impacts
IATA and the World Customs Organization from Asian countries is recovering.
(WCO) announced that IATA’s Cargo-XML of a changing climate than the region’s larger The expansion of the Panama Canal is
transshipment hubs - which have instituted port
messaging standard has been fully integrated
into WCO’s Cargo Targeting System (WCO resilience frameworks into their operations. now expected to drive a new phase for the
CTS), a risk assessment tool available to Given the dependence of island economies on development of the shipping industry in the
WCO member countries worldwide. The international and intra-regional trade and the Caribbean; however, the advent of bigger
ships will likely provide challenges for the
integration of Cargo-XML in the WCO CTS importance of the formal and informal shipping region. While there has been a shift by the
industry, risk management practices – including
enables electronic communication between
airlines and customs authorities using the IATA monitoring and evaluating potential risks - bigger ports to capitalise on opportunities in the
Cargo-XML standards format. This will make may benefit Tier 3 ports in identifying ways to transshipments business, this shift is likely to
communication simpler and more effective, mitigate against economic, logistical and social propagate a growth in ship size within the feeder
network. Evidence suggests that there will be
and facilitate more accurate risk assessments losses. some marginalisation as the larger shipping
by customs authorities using the WCO CTS The diminution of the demand for maritime
application to capture advance electronic cargo transport has had an impact on port activities. lines consolidate their activities in a few main
manifest information. Since 2015, the whole of port industry, including ports to reduce operating costs. In this regard,
the sector of containers, has declined. The most it is the small local ship operator that will likely
IATA’s Cargo-XML eliminates the constraints continue to provide the services that the islands
posed by the traditional Cargo Interchange immediate effect of this decline could be to depend on. Development of the feeder network
Message Procedures (Cargo-IMP) standard and jeopardize some investment projects in 2017. itself however, will provide opportunities for
is designed to promote broader and seamless Many of those projects should be achieved on rationalizing of the regions informal shipping
data interfaces. Cargo-XML is recognized as the a period of several years and it is too late to services, thus presenting itself as a viable option
question their realisation. On the other hand,
universal language for improving e-commerce for the future viability of the regions smaller
and therefore facilitates growth in trade and they have been justified by the phenomenon ports.
encourages participation in global commerce of gigantism which involve investments to
through electronic data submission for all air increase depth of water and scaling of certain
cargo shipments. types of equipment. This is particularly the case

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