This year's economic outlook

Dr Fritz Pinnock, executive director, Caribbean Maritime Institute.

An important aspect of productivity within any industry is planning for the future. This involves forecasting the likely occurrences and performance levels to be experienced during a pre-determined period of time.

Today's dynamic approach to productivity indicates that the traditional approach to linear forecasting from year to year is no longer relevant in a complex and globalised world.

Shipping is no longer an independent industry but has been relegated to become one discrete function of logistics that connects the global supply chain.

Strategy alignment

Supply-chain managers are advised in this year's outlook to align their shipping and sourcing strategies to broader business goals and build competences around each stage of the product lifecycle to achieve greater customer centricity.

This illustrates a move from a rigid method of operating to a more flexible, timely and contextually relevant approach.

This paradigm shift dictates that we now have to take into consideration key factors that currently frame realities in the industry. One such reality is the fact that the value-added component within our current shipping operations is lacking.

Ninety per cent of all containerised cargoes that pass through our ports are transhipment, destined for other destinations. The traditional model of transhipment is now evolving as nine out of every 10 containers that come through our ports lack matching exports.

Ports have transitioned from places that receive, store and deliver cargoes to becoming a critical interface in the value chain process.

Based on this and other industry nuances, we can predict that 2014, will see Kingston Wharves Limited reinventing itself as it seeks to take on new value-added functions ,while Kingston Container Terminal (KCT) will be divested to one of the major global port-management operators ,which will change the dynamics in our local industry.

Automated System

As it relates to customs-brokerage services, the shift in the way our ports are managed and operated will send a signal to the rest of our industry. The new Automated System for Customs data, being implemented by Jamaica Customs Department, will impact the traditional customs-brokerage mode of operations. Customs brokers will be expected to move up the value chain and expand their range of services and value offerings, in order to survive and remain relevant.

Additionally, the implementation of the port-community system will shift the balance of power from the shipping lines and ports to the customers. Costing and value will be more transparent and, hence, the silo-operating status quo will be challenged significantly and greater efficiency introduced.

In summary, the drivers for change will be the Goat Islands economic zone - a new port infrastructure, the timely upgrade of the Kingston Wharves Limited structure and the transformation of KCT to a global entity.