KINGSTON Container Terminal (KCT) saw improvement in trans-shipment volumes handled at its port for the third consecutive quarter during the three months to September, when volume levels reached the highest on record for the first nine months of any year.

According to data released by the Port Authority of Jamaica (PAJ), trans-shipment cargo handled through its berth in the September quarter of 2010 was up 15.9 per cent over year-earlier levels.

For the year to September 30, 2010, trans-shipment cargo volumes were up 10.4 per cent and totalled over 8.56 million tonnes — the highest on record for the January to September period.

The recovery in volumes does not reflect any new long-term contracts being inked between the managers of KCT and shipping lines, but more derived from increased trade activity as the global economy rises out of the depths of the recession.

Prior to 2009, in 2007, volumes declined from 2006 peaks by 2.7 per cent before dropping 8.8 per cent in 2008 from year-earlier levels. But that fall-off surrounded decrease in volumes associated with shipping line Maersk’s decision to stop using Kingston as its regional trans-shipment hub in late 2007.

The move was part of a reduction the Danish shipping line implemented on its weekly AC1 loop connecting ports in Japan, China and Korea with the Caribbean and Mexico.

Then, Maersk also dropped direct calls to Manzanillo in Panama and instead continued using Balboa, Panama, as a feeder hub to the Caribbean markets.

The PAJ subsequently pushed back the development of the Fort Augusta peninsula in 2009 to 2011, but blamed the recession as the cause. That plan was to include a large-scale freeport facility on the peninsula to provide assembling and duty-free shopping comparable to that which exists in Panama, and would have complemented plans to develop Port Royal as a major cruise ship destination to be interfaced with the Fort Augusta freeport.

One other factor contributing to the increase in trans-shipment activity at the Kingston port in recent months is the commencement of servicing new generation mega vessels — two of which were received in the June quarter.

Zim Antwerp docked in Kingston in February and April, while the 349-metre long MV Zim Rotterdam landed in June. ZIM Antwerp, made its third trip to Jamaica, by early August.

The vessels each have a capacity of 10,062 TEU (20-foot equivalent units).