Resilience and innovation – key drivers for growth

As we continue to chart a course for growth in 2018, we are ever mindful of the many challenges on the horizon. For many of us in the region, several of the challenges of the previous year continue to linger into the present and impose rigid constraints on the pursuit of prosperity.

Of the many issues that adversely affect the profitability of the shipping industry, I would like to draw your attention to a recurring threat that has been intensifying in recent years – hurricanes. This force of nature, with which we are all too familiar in this part of the world, has been wreaking considerable havoc with great frequency. The 2017 Atlantic hurricane season brought with it widespread destruction and tragic loss of life. It featured 17 named storms that yielded 10 consecutive hurricanes. Estimates put it as the costliest hurricane season on record with approximately US$ 280 billion in total economic losses.

While the hurricanes violently and rapidly swept through the region, the damage that still remains is indicative of the slow road to recovery that many regional economies are currently facing. As we have done in previous years, the CSA has come to the aid of the affected islands by donating US$ 100,000 to their disaster relief efforts. It is our hope that this contribution will make a difference in the lives of many families.

Resilience planning

It is also our hope that, going forward, the region will give greater consideration to strengthening our collective resilience in the face of extreme weather events. The onus is on us to ensure the development of resilient communities that are adequately positioned to both respond and adapt to the changing climate and the ensuing external shocks. Disaster resilience planning should be an ongoing process that focuses on surviving and thriving in times of emergency.

I would like to take this opportunity to commend the current capacity-building work taking place on the ground, which seeks to establish a platform to build resilience. The Caribbean Disaster Emergency Management Agency (CDEMA) and its partners are reviewing early warning systems from the 2017 hurricane season in order to strengthen resilience against future disasters. The CSA fully endorsed the recent Caribbean Port Management Workshop, spearheaded by the Port Management Association of the Caribbean (PMAC). This forum tackled the development of a quick-response Regional Disaster Assistance and Relief Network and outlined the crucial link with the Regional Logistics Center for Humanitarian Assistance (CLRAH) in Panama.

While these initiatives represent a step in the right direction, there is more important work to be done as we brace for the 1 June start of the 2018 Atlantic hurricane season and beyond. Resilience is clearly not a matter of choice; it is an imperative that requires a concerted effort to prevent natural disasters from eroding the socio-economic gains we have made as a region.

Leveraging the power of innovation

I would now like to turn your attention to the topic of innovation, which has a key role to play in support of resilience building. Resilience requires innovation and innovative thinking to surmount our challenges and increase adaptive capacity. More than simply reacting to events to survive, the concept also includes evolving and taking advantage of emerging opportunities.

To borrow a quote from Fiorella Iannuzzelli, advisory director in charge of enterprise resilience and risk consulting at PricewaterhouseCoopers (PwC): “Innovation is an integral part of…being able to emerge from the ‘other side’ of an event in a stronger position.” So whether it is sourcing funding, devising technical solutions, establishing partnerships or implementing processes, innovative thinking is a critical component in the cultivation of resilience.

Blockchain technology

The proliferation of technology continues to accelerate the pace of innovation, and there is no place in the modern business environment for those who fail to keep up with latest developments. Blockchain – the game-changing innovation that has the shipping industry buzzing with excitement – has been mentioned in previous issues of this publication, but I strongly believe it is a topic we should continue to follow closely.

Blockchain has evolved from simply being the underlying technology associated with the Bitcoin cryptocurrency. It is now paving the way for new business models and forcing industries like ours to rethink the way we do business.

The recent partnership between Danish shipping giant Maersk and the American tech titan IBM to form a new company to commercialize blockchain technology is a welcome development. This new business entity intends to assist shippers, ports, customs offices, banks and other stakeholders in global supply chains to track freight more efficiently and replace costly, time-consuming paperwork with tamper-resistant digital records.

The opportunities and advantages provided by this technology are evident; and its rising tide is poised to lift the shipping industry into a new era. When we consider it with other innovations emerging around port automation, energy use, vessel management and other key areas, it is clear that technology holds the key to a more efficient, productive and sustainable future for shipping.

CSEC Conference

I invite you to learn more about disaster resilience and the technologies shaping the shipping industry at the CSA’s 17th Caribbean Shipping Executives’ Conference (CSEC) at the Hilton Fort Lauderdale Marina in Florida from 14 to 16 May.

The event will feature an informative and engaging half-day workshop on disaster awareness, with participants from regional ports, shipping lines, the US Coast Guard and the Royal Netherlands Navy. The spotlight will also be cast on the Maersk/IBM blockchain initiative – a topic I am sure you will not want to miss. Also high on the technology agenda is the rise of e-commerce and the digitalization wave in the shipping industry.

Other areas for discussion include the international trade outlook for the Caribbean and Latin America; raising standards of the shipping agencies; the cruise shipping industry; Cuba and the Trump administration; and air freight challenges and opportunities. I look forward to productive sessions and hope to see you in the vibrant city of Fort Lauderdale.

Remembering Noel Hylton

In closing, I would like to pay profound tribute to the Hon. Noel Hylton, OJ, who passed away in February. A seminal figure in the regional shipping industry, Mr Hylton played a leading role in the formation of the CSA and served as its first secretary and first executive vice president.

He was a man of extraordinary vision with an unwavering commitment to the industry that he served with great passion. His contribution to his native Jamaica and the wider region can never be truly measured. With his passing, we have lost a formidable pioneer. 

On behalf of the CSA, I wish to express my heartfelt condolences to his family. He was a leading force in the industry and the CSA is proud to stand as part of his enduring legacy.

David Jean-Marie
President
Caribbean Shipping Association