Preparing for uncertainties in a changing global market

As we shift our focus to 2019, kindly allow me to begin my inaugural message as CSA President in our flagship publication by fittingly extending best wishes to you for the New Year. Another eventful 12 months have gone by, and while our resolve was undoubtedly tested, we demonstrated the resilience and inventiveness that will continue to serve us well as we face the challenges that lie ahead.

I would also like to use this opportunity to express my gratitude for the vote of confidence placed in me to lead this prestigious organization. I am deeply appreciative of this chance to contribute to the CSA, and the welcoming embrace of the regional shipping community has been extremely encouraging.

It would be remiss of me to not offer my sincerest thanks to my immediate predecessor, Mr David Jean Marie, and the members of the General Council who diligently served with him. His insightful stewardship guided us through turbulent times and elevated our standing as an industry. We would not be where we are today without his vision and untiring effort, so I wholeheartedly commend him and the team for providing an excellent platform for me and the present Council to build on going forward.

Uncertainties

As you are well aware, the way forward is beset by uncertainties on all sides. The world economy is expected to continue to show gradual growth similar to last year, but issues related to supply and demand balance, slower growth of global value chains, the comparative slowdown and anticipated rebalancing of the Chinese economy, trade friction between the United States and China, as well as the United Kingdom’s impending exit from the European Union, have led to increased levels of uncertainty. In the face of these geopolitical, economic and trade policy risks, it is imperative that we maintain sight of the bigger picture, effectively leverage current trends and prepare for the opportunities that will inevitably emerge.

According to Drewry, a UK-based shipping consultancy, there will be “mounting pressure on ports from cascading of vessels across all trade routes, especially for berths that are able to handle the biggest ships, resulting in increased obsolescence of older berths”. It is clear from this point that ports should continue to invest in developing their infrastructure and moving up the logistics value chain to ensure they remain relevant, competitive and viable in the medium to long term. The onus is on us to continue to look into the opportunities offered by game-changing technological developments such as digitization, automation and blockchain, as well as expanding supply chain portfolios where applicable.

Urgency

I am of the firm view that tomorrow’s shipping industry is in our hands, and we must be fiercely determined to shape the future of the industry in our region. In order to cope with these pressingly important issues, a strong sense of urgency and solidarity is required. The CSA remains committed to helping members face the new challenges and seize the emergent opportunities, and I cannot overly state the value of collaboration in this process.

Now, more than ever, collaboration is critical to the success of our regional shipping industry. The CSA, in this spirit of collaboration, will this year redouble its ongoing efforts to galvanize members at the local level by strengthening existing national associations and facilitating the formation of new ones in territories that are not adequately represented. Our goal is to create a more inclusive Association that is committed to seeking out, encouraging and valuing all voices in the regional shipping community. The CSA acknowledges that this is an essential part of its mandate to support the development of its members and credibly lobby for improvements on their behalf. As we strive to achieve greater levels of inclusiveness, the CSA will ultimately benefit from leveraging the experiences and perspectives of a broader cross-section of the community. I look forward to connecting with these local bodies and interacting with our diverse membership.

As I conclude, I would like to make note of the fact that training remains high on the CSA’s list of priorities. In recent years, the work of previous CSA presidents in this area has yielded positive results, and we will continue to push this agenda to ensure that the next generation of seafarers, shore staff and executives are ready to fill the relevant vacancies. Partnerships with institutions such as the Caribbean Maritime University and the University of the West Indies have allowed us to infuse our industry with youthful talent and energy, and our successful port exchange program will continue to facilitate invaluable knowledge sharing.

Headwinds

We will undoubtedly face strong headwinds in the ensuing months, but it is vital that we remain undaunted in the face of adversity. Preparing for these challenges with innovative and practical thinking is a useful approach that offers us a chance to navigate our way to success. I look forward to working tirelessly with all of you to realize our ambitions.

Juan Carlos Croston
President
Caribbean Shipping Association