Senior Reporter
shaliza.hassanali@guardian.co.tt
Cargo coming into T&T is being affected by the ongoing drought in the Panama Canal.
And immediate past president of the Shipping Association of T&T (SATT) Hayden Alleyne is now raising a concern over the issue.
Alleyne, a shipping consultant, said the Panama Canal was currently experiencing a backlog of vessels due to shrinking water levels.
More than 200 ships carrying goods have been stuck on either side of the canal for weeks, causing a delay in the arrival of cargo in T&T, he told Guardian Media.
Alleyne said that the drought has been affecting companies locally, as some have not been receiving supplies in a timely fashion.
“They (Government) have to start by recognising that the problem is there. I haven’t heard any of them come out and say this is a problem. They are aware of the challenges,” Alleyne said.
He appealed to the Ministry of Trade and Industry, the business community and maritime technocrats to urgently come up with a plan to deal with the issue.
Asked if the association had any plan of its own, Alleyne said there was no easy fix to this dilemma.
“It’s a drought in a country. Can we control the weather? Can we have a plan for that? No! We don’t know.”
However, Alleyne said, the association was creating climate change awareness, educating the masses and adopting policies.
“That is the best that we can do for the short-term,” he said.
T&T, he said, needed long-term solutions which would require putting everyone’s heads together to devise a workable solution.
“It’s a crisis that has hit the region. It’s all about education and bringing together your best minds to come up with solutions. This issue has to be discussed urgently.”
In early August, the Panama Canal Authority capped the daily transits across the canal to 31 vessels, down from an average of 36.
Rainfall is key to replenishing and operating the waterway, but the drought has been ongoing.
Most of these vessels exit China carrying consumer goods in freight containers.
Recent restrictions on the canal were forcing many companies to transport fewer items on ships which could potentially lead to emptier shelves and higher prices in stores.
The Panama Canal is a constructed waterway that connects the Atlantic and the Pacific oceans across the Isthmus of Panama.
Food not affected
Food supplies, Alleyne said, were not adversely affected.
“Food, not really. More so retail items. Most of our food comes from the region and the US, Latin America and South America.”
Goods that would normally take four weeks to arrive at our shores have been taking three months to get here.
“Yes. We do bring a significant amount of cargo through the Panama Canal, so it will affect the delivery time and the freight cost of some goods coming to Trinidad. Now, it will be exasperating because we are in our peak period ... typically the few months coming into Christmas. Some of the Carnival bands bringing in stuff out of China, now is their go-to time for shipping stuff, so you are seeing some effects there. Some mas bands have indicated that it is a challenge, and they are trying to resolve that by ordering much earlier than they normally do and looking at air freight solutions.”
He said delays have also been attributed to other issues such as additional costs. Some consignees, Alleyne said, had been paying extra for their goods to be given priority to cross the canal, while weight restrictions had also been imposed on large vessels.
The extra costs could translate into an increase in the overall price of goods.
Asked what could be the worst-case scenario if the drought persisted, Alleyne said on the Panama Canal side, “serious questions were being asked”.
A few years ago, he said, the canal was expanded to accommodate larger ships.
“The discussion they are having now is that the Panama Canal is dying.”
Currently, Alleyne said, policymakers were looking for solutions to build new tributaries and man-made lakes to feed water into the canal.
“What that means for us is a major relook at trade lanes and methods of getting cargo to the region. It’s an issue that is on our agenda.”
This weekend, Alleyne said, the association will raise their concerns about the drought, climate change and pollution at a conference being hosted in Port-of-Spain.
“The plan is to have adaptive solutions to these challenges. We have to take it seriously.”
No delays for Carnival–Ayen
T&T Carnival Bands Association president Mark Ayen said his association had not received any reports from its 300 members of delays of Carnival materials for next next February’s Carnival.
Ayen said he had been urging members to utilise locally manufactured items for their costumes but said he expected any backlog of Carnival materials to arise among large bandleaders in the coming weeks if it occurred at all.
“It may pose a problem for the upcoming Carnival season especially as it is short.”
He promised to engage the trade and tourism ministries on this matter “to see how we could assist”.
T&T Manufacturers’ Association president Roger Roach said he too, had received no complaints from members.
But Roach said if the water levels in the canal continued to drop, he could foresee problems for T&T’s business community.
“Panama is a major transshipment point for Trinidad. So, if there are delays in Panama it would affect us.”
Also contacted, Maharaj Westside Supermarket CEO Kumar Maharaj confirmed there was a serious backup of goods.
“It’s taking so long to get to Trinidad, and when the goods do come through, it’s coming close to one month before the expiry date. The goods hardly have any shelf life,” Maharaj said.
Maharaj said with Divali around the corner, they had ordered 12 containers of ghee but so far had only received one of them.
He also disclosed that some suppliers have been cutting back on the orders of certain products.
“They are restricting us,” he said.
