Shipping industry official notes imports slowdown

Nov 23, 2012 News

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…but anticipates Christmas season increase

The effects of Hurricane Sandy, which pounded sections of the United States, Canada and the Caribbean, may be farther reaching than anticipated, since it is likely that it has served to slow the rate of importation of Less-than Full Container Loads (LCL).
This opinion was expressed yesterday by Warehouse Manager at John Fernandes Limited,

Mark Archer.
During an interview, Archer revealed that when the LCL (i.e. boxes and barrels), importation rate of this time last year is considered, this year is remarkably low.  “Compared to last year our workload is light, because at this time last year it was real hectic…”
Dubbed as the leader in the shipping industry, John Fernandes Limited is responsible for approximately 65 to 70 per cent of cargo in and out of Guyana, according to Archer. The shipping industry, he added, is responsible for about 90 per cent of the cargo entering Guyana.
But according to the Warehouse Manager “we believe that Hurricane Sandy slowed down things a bit and we don’t know if it will pick up a bit later. Perhaps people’s family might just opt to send money rather than post a box or barrel,” Archer surmised.
Nevertheless, he insisted that John Fernandes will not waver in its commitment to the public as it will seek to maintain a robust system of operation which is usually put to the test during the Christmas season. This commitment, according to him, will be aided by the C73 Form, which has for the past two years proved to be a mechanism to help bolster efficiency.
A former mode of operation required that Customs officers examine cargo at the Water Street Wharf before it gains the attention of a Broker, who was then tasked with preparing a form detailing the content of the cargo before it is then processed. However, this operation is now a thing of the past, since according to Archer, with the C73 Form mechanism, no examination of cargo is required and the Customs Officer in Charge is now required to prepare the declaration form based on the disclosure of customers.
“This is a much faster process because from Customs you go straight to the cashier and pay, and from the cashier you go to the window to have your stuff released, get it stamped, uplift and you are ready to leave.”
Based on suspicions or a report, Customs could opt to examine imported items, but currently there is no examination of items. As such persons could be penalised if false declarations are made this publication was informed.
“With the Christmas season fast approaching we will get a lot more personal effects coming in and the system will function just the same, if not more efficiently. At Christmas we usually increase our staff, both us and Customs, so that we can handle the larger crowd and if necessary we put in a second cashier. Last year we had a second cashier,” Archer informed. Currently the warehouse has a staff of 25 persons which can be augmented to about 30 to 35 if the need arises, he said.

As part of the efficient protocol, all imported barrels and boxes are affixed a standard Customs duty rate. Large barrels attract a cost of $4,000, medium $3,000 while the smaller sizes are $2,000. Boxes on the other hand are duty rated based on their measurement.
However, the ideal mode of operation is sometimes stalled since there are instances when the workload builds, given the number of persons who utilise the John Fernandes service. Though the C73 Form is designed to foster efficiency, all documents must first be approved by the Customs Officer in Charge (OC) before processing can commence. But according to Archer, a strategic intervention is in place to address such developments, particularly during the Christmas season.
“We would put a staff member who would get that document okayed rather than wait on the OC to return with it. We realise that the OC is only one person.  Once we have a staff member there it will considerably reduce the waiting time. So every time the OC takes in some documents we would bring out some and it will help to improve the system,” Archer noted.
Currently the warehouse commences its daily operation at 07:00 hours and concludes at 16:00 hours. Staffers are given a one-hour lunch break which starts at 11:00 hours.  However, in anticipation of an increase in imports, the warehouse is gearing to put in action a plan which will allow for a staggered lunch period, thereby allowing for continuous attendance to customers.  This move, which was introduced five years ago, will span the period of December 3rd through 31st, Archer said.
Despite this strategic measure, Archer urged that customers exhibit some level of patience when visiting the Water Street, Georgetown, facility since “sometimes in a day we handle 250 customers which at times mean dealing with over 400 packages…You won’t find the same efficiency when I’m handling 10 persons and sometimes there may be a bit of confusion and time spent in locating a few items.”
Even in the face of challenges, Archer said that the entity’s operation is premised on ensuring that “all customers get their barrels or packages the same day; no one has to wait till the next day.”

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