Pandemic causing the delay
EVEN as the Jamaica Customs Authority (JCA) has come out to say it has no control over port activities and can proffer no explanation for extended delays in goods clearance since December 2021 in Montego Bay, the Port Authority of Jamaica (PAJ) has stepped forward to explain the problem.
The PAJ is attributing the issue to the behaviour of shippers and also “strict protocols implemented by the Government of Jamaica via the Ministry of Health and Wellness to mitigate against the spread of COVID-19 virus” which has resulted in additional delays.
Shippers have been delaying some calls and discharging twice their usual load also. The PAJ is meanwhile promising not to auction goods which have been subject to the unusual delays at the Montego Bay Port.
Importers and householders expecting barrels and goods in Montego Bay last week raised concerns about long waits experienced at the port.
Freight Handlers Limited, a company which assists Jamaicans in clearing imports, indicated that it was waiting for containers which came in December 2021 and which remain unstripped, as there is limited warehouse space in the facilities for goods clearance.
“There is a big backlog, “the spokesperson told the Jamaica Observer. Meanwhile, one woman, a client, told the Business Observer that her barrel had arrived long ago, but she was told she would have to wait 21 working days for collection.
On Tuesday, February 1, 2022, the Port Authority of Jamaica (PAJ) issued a release which explained that the customary Christmas peak season challenges hinder the swift clearance of shipments at the Port Handlers Ltd (PHL).
Cargo House, the warehouse, was worsened during the 2021 peak season due to global logistics, trade and shipment delays arising from the adverse effects of the novel coronavirus pandemic.
The PAJ release said, “During the past peak season, we noticed an unusual rippling effect of delays caused by the pandemic that did not only impact the scheduled arrivals for shipping lines discharging shipments but also the timely arrival of customers to clear and collect shipments.
“Due to port congestion overseas, some shipping lines opted to skip a weekly port call and discharge twice the number of containers on the next trip. The increased (lump sum) quantities of shipments discharged therefore challenged the port’s weekly capacity to process all containers, resulting in a backlog from week to week.”
Simultaneously, the port also experienced what the PAJ said was “an unprecedented level of delay in customer arrivals to clear and collect shipments, especially so for those customers who travel overseas to pack and ship merchandise themselves.”
It noted, “These customers often arrive long after their shipment with the airline’s Passenger Declaration (C27) Form used to obtain a discount on customs charges.”
It all resulted in a congested warehouse with a high volume of shipments sitting on shelves awaiting collection. Altogether, the PAJ outlined, “these circumstances had a profound adverse impact on the warehouse operations and created lengthy delays in processing shipments and customers at the port.”
New measures
The PAJ stated that along with the PHL and in collaboration with the JCA, it has implemented several measures to counteract some of the challenges mentioned and to increase warehouse efficiency.
These include the relocation and expansion of the customs cashier station to facilitate more customers being processed at once in an adequately spaced area; and stripping bay improvements to allow container stripping to take place uninterrupted by inclement weather.
It has also installed customer restrooms and improved warehouse ventilation, to combat the spread of the virus in crowded areas and the implementation of an appointment system to streamline the processing of customers and prevent overcrowding.
Holding facility
PHL and the JCA have also relocated several of the non-moving cargoes to a temporary holding facility on the port to create additional shelf space, allow more containers to be stripped and for cargo to be stored for clearance.
Relocated cargo is classified as cargo that has exceeded both the seven days free storage period allowed under the Wharfage Act (before a penalty is applied) as well as the 14 days limit without clearance under the Customs Act.
The PAJ stated, “Although in the latter case such cargo would be due to be moved by the JCA to the Queen’s Warehouse and subject to public auction, the PAJ and the JCA have been sympathetic to the unusual conditions brought about by the pandemic and agreed to temporarily hold these shipments at a separate location on the port to allow customers additional time to collect them.”
The authority said it is encouraging “customers to clear shipments as soon as possible after receiving notification from their freight forwarder that shipments are available for clearance. Uncleared cargoes left on warehouse shelves for prolonged periods create a bottleneck that reduces the number of containers that can be stripped and prevents cargo for other customers from being warehoused and made available for clearance.”
The PAJ said it is also exploring new systems and mechanisms to enhance operations with “significant improvements” planned for implementation in the 2022 peak season.
The Jamaica Customs Authority, meanwhile, told the Business Observer that delays were beyond its control. LaDonna Manning, communications manager, said: “We work along with port operators and warehouse keepers and agents. Customs does not own warehouses or store goods, we only examine and assess goods presented to us by the warehouse operators/couriers/agents.
“We will seize and keep goods in the Queen’s Warehouses or at the most suitable location, depending on the nature of the goods, if and where this is required (eg contraband items, infringing goods, and overtime goods for auctions).”