War will not affect trade says shipping association
THE Shipping Association of Jamaica (SAJ) says the US-lead war against Iraq will not interfere with its business operations.
“The SAJ is adopting a business-as-usual approach at this time,” SAJ president Harry Maragh said in a statement Friday, adding that all the stakeholders had contingency plans in the event the war is extended.
But conceding that it is difficult to predict if Jamaica’s seaports will experience any downturn in trade as a result of the war at this time, Maragh noted that the likely outcome could be higher operating costs such as fuel, security and insurance, resulting in higher freight costs.
“The US represents the world’s largest importer and Iraq, a major oil exporter. Any sustained war can significantly spiral major oil price increase and affect the smooth flow of goods through the economic trade routes and this could possibly push the world further into a recession,” Maragh said.
He added that based on previous experiences during “Desert Storm” — the 1991 Gulf War — there is the potential for increased transshipment traffic through the Port of Kingston. As a result of possible diversions in trade routes, “the industry is playing a wait and see game”.