EWL’s bankruptcy fallout…

Jul 18, 2008 News

Exporters assured alternative carriers being negotiated

Local exporters whose containers were delayed in Guyana over the weekend after a major shipping line filed for bankruptcy will have to wait a while as negotiations for an alternative service are currently ongoing.

Yesterday, local agents, John Fernandes Limited, said that the Europe West Indies Line (EWL) has announced that it is talking to a number of existing carriers to take over services in the Caribbean.

“It is expected that these negotiations will be concluded shortly and a further release on the alternative service will be announced by Tuesday,” John Fernandes said in a statement yesterday.

The company assured that every effort is being made to facilitate the safe delivery of the cargo currently in transit and to reduce delays.

An estimated 50 containers of rice to be exported have been delayed in Guyana because of EWL’s financial problems. That shipping line went into receivership last Friday.

According to Bernie Fernandes, Marketing Director of John Fernandes Limited, on Wednesday, his company was moving to make emergency arrangements to ensure that the rice does not stay too long in the country because of market commitments. Two such options being examined are the CMA-CGM and ZIM shipping lines.

A major number of the containers hold rice milled by Mahaicony Rice Mills, who recently also had to contend with the suspension of their milling and export licences for two weeks. About 20 other containers scheduled to be shipped using EWL have also been affected.

EWL, according to Fernandes on Wednesday, represents a significant part of the income for John Fernandes. It was unclear how much of an effect on local trade the EWL receivership will have.

But with rice markets overseas heavily dependent on a stable supply, exporters will have to further negotiate with irate buyers who are already contending with high prices.