Shipping worries - Terrorist attacks on US spell hard times for local exporters

By Al Edwards, Acting Financial Editor

Lopez

LAST TUESDAY'S attacks on the United States' World Trade Center and the Pentagon has lead to many local exporters unable to shift their goods to the US because of the absence of airlift approval and now find their businesses facing potential ruin.

This has harmed those in the perishable goods and produce business who in the main prospere from shipment to shipment but now find their goods stacked in airlift warehouses rotting away.

At a meeting convened by the Jamaica Exporters Association (JEA) and the Ministry of Industry Commerce and Technology yesterday at 13 Dominica Drive to address exporters concerns, JEA president Beverley Lopez noted a case of a papaya exporter having his produce ripening on him because he couldn't get it out of the country.

Mrs. Lopez said US security measures would have a detrimental effect on Jamaican trade and that the Government ministries and JAMPRO should do what it can to come to exporters aid.

There has been a significant downturn of purchasing of goods via telemarketing over the last week which has threatened to stall the progress of a viable technology industry spearheaded by call centres. The apparel sector which receives most of its material from the United States has also experienced a significant downturn.

Some exporters told of sustaining losses through an inability to utilise credit facilities for instance a lot of Federal Express packages are now unable to come into the island due to stringent security procedures at US airports. Some produce exporters have noted an improvement this week with air shipment capacity returning particularly by Air Jamaica. On Monday morning the FAA announced that foreign carriers could resume flights. An Air Jamaica spokesman said that it was business as usual with the difference being that there are now additional security procedures and it will not be processing any unknown shippers at this time. Therefore it will be dealing with all its regular customers but new ones would experience some difficulty joining the export programme at this point of time. The spokesman added that over the last week damages and losses to exporters' goods were sustained.

Although Air Jamaica has resumed flying goods for exporters, British Airways and Air Canada have yet to resume the service much to the chagrin of many Jamaican exporters.

Of particular concern to many exporters is the quality of their arrivals. With US authorities now having to be overzealous in their security measures, many exporters fear that concerns for the well being of perishable and delicate goods in particular will warrant scant regard in an effort to be vigilant. Many exporters at the meeting drew to the attention of Minister for Industry, Commerce and Technology Phillip Paulwell that many of the exporters also serviced the tourism industry and in particular cruise ships and that there too they envisaged a dramatic fall out which would impact negatively upon their businesses. It was suggested that regular reports to the JEA on this matter would be beneficial in order to ascertain what should be done and what is required. Many exporters spoke of having their shipments on wharves in New York undeclared from last week thereby adding further pressure on their businesses. It looks likely that these consignments will get clearance sometime next week.

Mrs. Lopez voiced concerns about shipments of yams and peppers which require fumigation which she said shortens the lives of these goods and was looking into the likelihood of avoiding fumigation. She said that "We may be fumigating when in fact we may not have to. The Ministry of Agriculture had to address this matter expeditiously bearing in mind it added to the exporters' costs."

Minister Paulwell said that the economic fallout from the attacks on the US was deeply worrying and that his ministry was presently evaluating the short medium and long term effects and would be formulating a strategy to reduce losses in a systematic and pragmatic way.

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