e-platforms advocated for shipping sector | Daily News

e-platforms advocated for shipping sector

Shippers and port experts are convinced that a viable way out of the current crisis which is wreaking havoc on global shipping is the optimum use of technology to glide over the unprecedented tides and go on with business.

Sri Lanka Shippers’ Council Past Chairman Gehan Kuruppu said the repercussions of the Covid-19 pandemic will undoubtedly have a significant impact on the global shipping industry and place increased financial pressure on a multitude of companies.

He said the global shipping industry has taken a bad hit as the main trading hub centre, China which was the global export giant and the source of raw material imports for almost all commodity manufacture, shut down.

“However, transport by sea was not so badly down as the airline industry where many airlines have laid off pilots, crew and employees,” Kuruppu said, adding that Sri Lanka has a well developed IT sector and sophisticated virtual e-platforms which have not been fully used in trade, ports and shipping sectors.

“Our group has been using e-platforms to carry on business and this time when the crisis hit the country we were prepared to cope with the new challenge using the technology to operate from home,” Kuruppu said.

He said the crisis in a way has been a blessing in disguise compelling us to accelerate the process of getting on to e-platforms. Similarly, it has helped many businesses to move on to digital platforms to conduct business.

“We provided laptops and facilities to members to work online which has ensured a smooth operation to a great extent.

The development of associated technologies will have great demand,” Kuruppu said, adding that trade facilitation in Sri Lanka and many organisations have moved to E gateways in certain fields,” Kuruppu said.

Imports clearance is now being done through e-channels to the long room and allied service providers such as shipping lines and the freight forwarding sector issue Electronic DO (EDO).Import and export are now on the E mode.

The industry stakeholders have been working for over a decade to link all government departments to the e-platform starting with the Sri Lanka Customs which is still to fully use online submissions. The Sri Lanka Ports Authority has been automated to operate online payments and e document submissions. Use of modern technology is crucial especially at a time when restrictions on movement and the social distancing is imposed . However, Sri Lanka needs to develop the facility and increase its use.

“Sri Lanka has enough expertise in this field to take this to a professional level similar to developed countries which have digitized the economy,” he said.

However, he said the issue is that the Government Departments do not have the will to fully use the technology due to reasons of their own.

The progress made by LankaClearing and Lanka Pay must be admired.

The banking and microfinance are key sectors which need to develop e platforms. Banks can play a major role during the current crisis.

A senior banker from The Netherlands recently said during a session in Colombo that the retail banking sector is making profits of nearly 58 percent. The banks operate ATMs and charge customers.

Banks should not depend on bail outs but rather should help the affected sectors with affordable loan schemes.

However, he said thanks to pressure groups such as the Sri Lanka Shippers’ Council and some of the National Chamber of Commerce and Exports/Imports organisations kept on the export and the import of essentials for the manufacture of exports specially tea. Electronic tea auctions kept the Sri Lanka Ports Authority running and foreign shipping lines still call at the port of Colombo to pick up the exports.

The related ministries should do a survey to find out which export sector could commence exporting fast.

The relief measures offered by the Central Bank will be an impetus for many businesses especially the SMEs to commence operations. Meanwhile globally a number of ports and shipping companies have implemented measures to cope with the pandemic which is causing severe disruptions within the industry.

The strict containment measures imposed by governments around the world has also resulted in substantially lower global economic growth and consequentially, lower demand for the movement of goods.

This comes following the crisis initiated by Hanjin Shipping’s collapse in 2016 and the protracted US-China trade war, which has already tested the resilience of the industry.

The repercussions of the Covid-19 pandemic will undoubtedly have a significant impact on the global shipping industry and place increased financial pressure on a multitude of companies.

Approximately 80% of world goods trade by volume is carried by sea and China is home to seven of the world’s ten busiest container ports, according to the United Nations Conference on Trade and Development. As a result, disruptions have had a profound impact.


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