Year in Review: Stories which shaped shipping in 2024 (Part 2)

AS WE continue our reflection on 2024, the second instalment of this year in review delves into the stories that affected the maritime industry, both locally and globally. From landmark achievements in Jamaica’s shipping sector to the broader implications of international labour disputes and environmental challenges, these events highlight the industry’s resilience and adaptability. This segment highlights key developments that not only defined the year, but also set a clear trajectory for the opportunities and obstacles awaiting in 2025.

SAJ PARTNERSHIP WITH EUROPEAN UNION

The partnership between the Shipping Association of Jamaica (SAJ) and the European Union (EU) is set to move Jamaica towards becoming a world-class, sustainable logistics hub through the EU’s Global Gateway Initiative. Central to this is a recently approved project which focuses on creating a comprehensive plan for modernising the port of Kingston and Newport West. By leveraging stakeholder engagement, data-driven policy recommendations, and eco-efficient infrastructure upgrades, the project aims to position Jamaica as a competitive green hub in the Caribbean.

SAJ DISTINGUISHED LECTURE

Relatedly, the SAJ Distinguished Lecture, held on November 1, 2024 at the AC Marriott Hotel in Kingston, marked a vital moment in Jamaica’s journey to becoming a global logistics powerhouse. Delivered by renowned shipping analyst Lars Jensen under the theme ‘Jamaica as a Logistics Hub in a Changing Global Landscape’, the lecture explored the economic imperatives and strategic investments needed to position Jamaica as the fourth major node in global logistics. Co-funded by the European Union through its Global Gateway Initiative, the event was part of the SAJ’s 85th anniversary celebrations and brought together approximately 200 stakeholders from diverse sectors.

REAR ADMIRAL PETER BRADY RETIRES

Rear Admiral (Ret’d) Peter Brady retired as director general of the Maritime Authority of Jamaica, marking the end of a remarkable tenure that began with the organisation’s inception in 1999. Rear Admiral Brady helped to elevate Jamaica’s maritime status globally, championing initiatives such as the implementation of the ISPS Code and the development of the island as a shipping hub. A highlight of his legacy was securing Jamaica’s re-election to the IMO Council for consecutive terms, with the latest achieved in December 2023.

Bertrand Smith, an accomplished attorney with over 25 years of experience in maritime and international law, succeeded Brady on April 2, 2024. Smith has been essential to modernising Jamaica’s maritime legal framework and advancing global conventions.

MAERSK AND HAPAG-LLOYD ANNOUNCE LANDMARK COOPERATION

In a move that sent shockwaves through the shipping industry, Maersk and Hapag-Lloyd announced the ‘Gemini Cooperation’, a long-term operational partnership set to begin in February 2025. The collaboration will combine a fleet of approximately 290 vessels, representing 3.4 million TEUs (twenty-foot equivalent units), with Maersk contributing 60 per cent of the capacity and Hapag-Lloyd the remaining 40 per cent. The partnership aims to deliver a flexible, interconnected ocean network with over 90 per cent schedule reliability, improved transit times, and access to major global hubs, while advancing both companies’ ambitious decarbonisation goals.

As part of the agreement, Hapag-Lloyd will exit THE Alliance in January 2025, aligning with the end of Maersk’s 2M alliance with MSC.

KWL EXPANDS WITH US$100M INVESTMENT IN WESTERN JAMAICA

Kingston Wharves Limited (KWL) is set to invest US$100 million in new developments, including an integrated logistics facility in western Jamaica, CEO Mark Williams announced at the company’s annual general meeting last June. The new facility, designed to serve both personal shippers and commercial customers, will provide a range of services, including warehousing, freight handling, deconsolidation, and inventory management. Williams highlighted that the expansion aims to address the growing demand for customised logistics services in the region, with the facility expected to benefit customers in western Jamaica and the wider Caribbean.

KFTL UNVEILS US$50M INVESTMENT IN EQUIPMENT, IT INFRASTRUCTURE

Kingston Freeport Terminal Limited (KFTL) has committed US$50 million to developing its operations with advanced equipment and cutting-edge technology. The investment includes the acquisition of two new ship-to-shore cranes, expected by late 2025, and 12 hybrid straddle carriers. These eco-friendly straddle carriers, part of KFTL’s growing hybrid fleet, will reduce carbon emissions through a regenerative power system and efficient diesel power sources.