Due to recession World shipping still reeling - Rohan Masakorala

By Lalin FERNANDOPULLE

The global shipping trade has not fully revived as major trade imbalances and changes in rates on certain shipping lanes still exist, said CEO, Shippers' Academy, Rohan Masakorala.

He said it is very unlikely that world shipping trade will recover in the near future as uncertainty looms in the US and the West which has a negative impact on world trade.

The US and EU economies are still reeling from the catastrophic impact of the global recession which resulted in laying off a large number of the workforce and resort to rescue packages and austerity measures.

According to shippers global trade has been crippled by the economic crisis in the West and the political turmoil in the Middle East. Exports to Iran, Iraq and Libya which are some of Sri Lanka's large scale buyers of tea have been hit due to the economic sanctions imposed by the West.

Masakorala said that there will be uncertainty in major trading blocks and cargo volumes will be unpredictable due to the problems in the West. Shippers will have to work with short to medium term freight contracts.

Sri Lanka's shipping trade volume is around four million TEUs throughput per annum and 70-75 percent transshipment. Growth in trans shipment trade has been slow this year but shippers are optimistic that with the completion of the new South harbour large vessels will call at the port and attract more revenue for the industry.

"The new port will service larger vessels and attract more volumes to Colombo through the feeder network provided the port sector is efficient and competitive in its services", the Academy chief said.

The Colombo port is restricted in handling a large number of ships until the South Harbour Terminals are in operation.

Port congestion will ease when the Colombo and Hambantota ports add capacity by around 2013", Masakorala said.

The Shippers Academy plays a key role in training and capacity building of the shipping industry in the country.

"There is a huge need to train people in global commerce and logistics since many have gained knowledge through experience and not through professional and academic qualifications", Masakorala said.

There is a knowledge vacuum and as a resulted a less innovative, competitive and productive workforce has been formed in the shipping industry. The Shippers' Academy is focused on enhancing productivity and the bottomline of companies through professional training for capacity building.