Caribbean Export OUTLOOK 3rd Edition

LOGISTICAL ISSUES AFFECTING CARIBBEAN TRADE

BY PROF. I BRAHIM A JAGUNNA AND PROF. FRITZ P INNOCK

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he international shipping industry is responsible for the carriage of approximately 90% of world trade and is vital to the functioning of the global economy. Intercontinental trade, the bulk transport of raw materials and the import and export of affordable food and goods would simply not be possible without ships, shipping and logistics. The concept of logistics in the Caribbean is still looked upon as a Utopian one. Maritime and air services are still regarded as distinct discreet activities with very little connection or link to the global supply chain. Equally, the regulatory framework governing air, land and sea are specific and does not recognize the emergence of an integrated and value added logistics and tourism industry. The role that the legislative framework plays in creating a competitive environment and setting standards for all industry players cannot be ignored. It creates the platform on which value added services connected to the global supply chain, can be created and enhanced. This also allows for an environment where the necessary international standards, regulations and trade facilitation can be created (2017). This article will

focus on identifying and addressing some of the logistical issues that affect trade in the Caribbean. Logistics today is far more than the classical triad of transport, turnover and storage. According to experts, innovations in logistics integrate the dynamics of the flow of goods, people, information, energy and financial resources and create novel cooperative services involving sophisticated IT solutions. The demand for logistic services, which involves planning, managing, and executing the movement of goods and information within global supply chains, is largely driven by firms’ desire to outsource some or all logistics- related activities to specialists. Such specialists are better able to manage global supply chains that are becoming complex as a result of globalization, production techniques, manufacturing, and electronic commerce. In theCaribbean, the logistics industry represents a group of disconnected actors carrying out activities relating to the import and export of cargo, which are often plagued with bureaucracy and often have overlapping functions. In addition, the approach to the development and facilitation of freight

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