Containers: Imports Down, Exports Up
Viewing the Hamilton cargo docks from Harbour Road reveals that there seems to be a lot more space on the docks.
According to Peter Aldrich, CEO and General Manager of Stevedoring Services the operators of the terminal; Freight volumes are down.
“Import container volumes have declined 10% per year for the past two years and don’t look to improve anytime soon. Based on import trends and cargo bookings, we forecast a further 10% decline this current year.”
Summer, which is considered a peak period for the dock has not brought the additional cargo that was anticipated.
When asked where the cargo was, Mr. Aldrich replied “Where are the people?” stating it was his belief that there are less people on the island.
“The only area of our business that has improved is export containers, which I believe are people leaving,” said Mr Aldrich.
Asked if the ongoing construction projects will increase the amount of cargo coming to island Mr. Aldrich stated “Not in the near term, current projects are merely drip feeding material into the country, we need several more large projects to start before we start seeing a real impact on importation volumes.”
Mr. Aldrich was asked how his company is managing with the reduced volumes he answered, “We are struggling like many other local businesses, our expenses continue to increase and our revenue stream is getting weaker.”
“Our goal, like everyone’s, is to survive this recession intact as much as possible and be ready to serve the Bermuda economy through its recovery in future years.”
“But if we are going to survive, we must also accept that there must be change; the simple fact is that the “status quo” does not keep businesses in business in a recession,” concluded Mr Aldrich.
More people leaving than coming… and the economy continues to move from weakness to weakness. When will Bermuda WAKE UP and realize that welcoming guest workers and their all important pay cheques is the ONLY way for us to avoid hitting the tipping point, and the absolute collapse of our standard of living as we ALL know it!
Cancel work permit term limits and lets put more than lip service to work to truly welcoming international business back to our shores. Lets spur residential development and jobs for Bermudian construction workers by lowering impediments to foreigners owning property. The PLP has purposefully worked their xenophobic dogma to great effect with their grass roots supporters, but to what result?
As a Bermudian (any average Bermudian) are you truly better off today than you were 10 years ago, or even 5 years ago?
It is time for a change!
we have too litle land left for further development
Open up the classifieds…. there are HUNDREDS of houses available for rent or sale right now! Lets start by getting those full first (by truly rolling out the welcome mat to business like Caymans and Bahamas are currently doing to great success), then in a measured way, we can increase density of homes in certain areas (such as the city) which allows us to keep open spaces and balance development.
Also there is over 1 million square feet of office space available right now! No office space means no office workers, means diminished economy.
NO FOOD! NO BERMUDA
This is the net result of the PLP tinkering with the property market and making expats unwelcome. Nice one.
Tinkering with the property market? Not to long ago, folks were complaining that rents and property values were getting out of control..and the ‘average’ person or family was getting squeezed out of the housing market.
So this government built houses……now people are complaining the PLP ‘tinkered’ with the property market.
I remember going to various town halls and meetings in which people (of all races) were very worried about the future of Bermuda as there was no ‘affordable housing’. Many ‘experts’ predicted widespread social unrest.
So this government took action…now people are still complaining.
Too bad the baby ended up being thrown out with the bath water – not much good having affordable housing if you don’t have a job.
exactly.
I remmember 12years ago there were alot of smiling faces wearing T-Shirts saying “I Made It Happen”…..so jus remember “You Made It Happen”
he’s talking about the licence issue and the inability of couples where one of the persons is non-Bermudian to own two homes. As a Bermudian who worked, no slaved for 20 years, to own two homes to be told that because now at 46, I married a foreigner and have to sell one of them is ludicrous. Why should I be limited to one home?
thats whats killing the property market.
And, non-Bermudians can only buy properties owned by non-Bermudians. So I own a house valued at $3M lets say, not too many Bermudians can afford that…so I lose out because when I want to sell it, I can’t. The price of my investment is depressed because of my limited pool of Bermudians to whom I can sell my property. Policies such as this is what is killing the market.
My two containers are on their way to the docks next week.Not only were we made to feel unwanted,my entire company is sending out a shipload of expat containers over the next couple of months.
But we’re the friendliest people in the world so nothing else matters really. As long as you say Good Morning.
Who needs axpats anyway? Tourists? Stay home. Who needs the Oleander anyway? I get my stuff from Piggly Wiggly.
And our beaches are wonderful! We don’t need no foreigners. Leave us Bermudians alone. I get my stuff from Piggly Wiggly. OK sometimes Friendly Store.
lol all true I was tell a friend that the other day that we are funny people our life blood is Tourist a lot of Bermudians not all but a lot of us don’t like Foreigners and we blame them for everything. Who can we court to come here the money is in Asia lol and how do most of us feel about indians mmm. We have to get real cause this has been going on for years.
hellOOOO PLP Goverment(no-n)… WAKE UP! This is basic stuff… more going OUT than coming IN.
Let me guess what the next move is. Contract some consultant from Pittsburg at $100,000 to try figure out why…
Wake up PLP? Unwelcoming to Business? Tinkering with the Property Market?
Do you all belive what you write? A Global Economic Slowdown Affects everyone. If he’s talking about volumes down 2 years in a row. DUH, it’s a recession!! Ask him how much they went up the prior 3 years!
When 95 percent of requests for Term Limit extensions get passed and the leaders of International Business say term limits aren’t an issue, why are you worried about them.
I swear if the PLP solved the Middle East Conflict you all would still find a reason to complain.
Yes, me and my family ARE better off than we were 5 and certainly 10 years ago.
You’ve got it wrong! It isn’t a recession when heads of companies, like XL, decide to move their families somewhere safer while still running their Bermuda-based company. These families moving away for “family reasons” are moving and taking their money with them. Puh-lease, they are not affected by any “recession” in Bermuda. They didn’t get made redundant! They don’t need to leave. Their work permits are not up. Them moving and taking their money affects us as Bermudians and OUR recession though.
What more do you need to hear – people are moving because they do not feel safe nor welcome here. And you know what? It is their RIGHT to move if they want to. They can still run companies like XL from the US. We should thank them for staying as long as they did. We should thank them for not taking the entire company with them! They put up with a lot of BS from us while they were here. This is a trend people – this is merely the beginning and frankly, I don’t blame them for leaving.
Container volumes into Bermuda are in there fith year of decline, started slowly in 2007 and another small decline in 2008 and then big declines in 2009 and 2010 and in the first quarter of this year, 2011, biggest decline yet – 11%.
The Global Economic Slowdown has most definitely had a negative impact on Bermuda’s economy but our economy has declined at a much greater rate than our major and much larger trading partners and we are still going down when at least N.America and the UK are stabalizing. So much of the economic damage is self inflicted and we can take action to reverse that.
Lets not blame a political party or a particular segement of the commuinty, as Bermudians we all have to accept responsibility for the problems and for taking action to do something about it.
LOOK bredren,
currect me if um wrong, but if exports r UP n imports r DOWN, doesn’t dat mean dat errything is in perfect balance? YIN AN YANG PPL!!! WITHOUT DARKNESS THEIR CAN BE NO LIGHT n VERS VERSA!
My cousin Crab-Shoes told me that 1 time he was in Arnolds cuz he wunted 2 get sum fruit ( he had this thing where he wuld lock himself in a room with a bunch of oranges n then stop answerin his phone). So he went up de cashier n wuz like “MAH THIS FRUIT, BIE” n de cashier wuz like “YA dun, that’ll be $5.76″. Crab-Shoes looked at her wif a blank stare n wuz like “Wut you mean?” So she explained 2 him that when ppl wunt goods or services, dey have 2 exchange money. He was like “but if I give u my money, that’s $5.76 less than I had b4!” so she said “thats tru, but you get 2 take de oranges home wif you.” After thinkin bout it 4 like an hour (ppl behind him in line were vexed), he finally understood n went thru wif de transaction.
All um tryin 2 say is that everything balances itself out. WHen life hands u lemons, try 2 make lemonade….COME ON PPL!
“4 every action, dere’s n equal n opposite reaction”
- Isaac Hayes
That was just too funny!
Yes Iya! Pure Truth.
Oh and by the way… Stevedoring, just like BF&M and Belco aren’t losing. Money. They are just making less. Its called the business cycle!
Totally! While I think their was TONS more the PLP could have done to prevent the recession affecting Bermuda as harshly as it has, the business owners of this island need to accept that profit margins are going to be lower! We are all taking pay cuts, many losing jobs, cutting back here and there. You just can not as a business owner expect to be making the same profits from 2006. As long as the health insurance and grocery sector keep raising prices, ALL other wants are going to be slimmed down! Supply and demand people, stop ignoring the ECON101. It’s basic for a reason.
Economics 101,
Unfortunately, I assume that you are not a business owner, nor are you an “average” Bermudian. If you were a business owner (as I am), you would know that we are now having to dip into our assets to sustain our businesses, as there is not enough income coming in to do it.
Business is about making money. Period. In the short term, without profit there is no reinvestment or growth, and then you cut costs to try to make up for the decreased income. That means everything is shaved (including salaries which means less employment). In the long term? Well the business goes out of business at the total loss to everyone; the owner, the workers, the community, and the government who used to collect taxes on the business’s operation (as they should and need to to create a functioning society).
That is economics 101 my friend. I also wish that the words i speak were just fear mongering rather than the inevitable decline of what used to be the most prosperous country in the world. And mark my words, it will mean that everyone, black and white will be so worse off it will be catastrophic.
Fire sale prices on bankrupt hotels (Pink Beach and Newstead), and no-one has shown much interest. Why? Because the GLOBAL investor is now seeing a little something called sovereign risk creeping inexorably higher.
Time for change is NOW. The PLP have had their turn, and whilst successful in some areas, have unfortunately not brought together a cohesive plan to carry us ALL (black and white) to future successes. All they have done is accentuated a divide between “us” and “them” which in this global marketplace, is doomed to failure.
Sad and heartbreaking.
Exactly! BTW I just took Economics 101… and the FIRST thing they tell you is how incorrect/incomplete the information in the course is.
@28 Red, you said
“Unfortunately, I assume that you are not a business owner, nor are you an “average” Bermudian. If you were a business owner (as I am), you would know that we are now having to dip into our assets to sustain our businesses, as there is not enough income coming in to do it”
@Economics 101: BF&M and BELCo provide essential services regulated by the Government. Furthermore as employers are mandated by law to provide insurance coverage it should come as no surprise that insurance companies continue to exist as they aren’t providing a discretionary service and therefore do not provide an accurate barometer of the general health (:-)) of the economy.
If you talked to a wide range of retailers, small business owners, restaurateurs, painters, electricians, contractors, IT providers, etc. I suspect they would almost all report declining revenues and in many cases losses.
On the same line, if you talk to anyone that is middle class, most have had no raise in a couple of years, some have taken pay cuts, some have lost jobs. This is WHY these types of businesses are suffering. There is less demand for their product. What can you do about that? Just goes to show who the driver of the economy is, certainly not the rich. It IS the middle class and the recession is causing the middle to make a lot of cut backs, so THESE industries will in turn suffer. It is something we have to accept, there is nobody to blame except the global recession. All I can say is I hope that these businesses can sustain themselves during the downturn. It doesn’t look like its ending anytime soon. And if when the recession ends, things will NEVER be as they were before. It was a false economy and the bottom dropped out.
The shareholders of Stevedoring Services have not had a dividend in two years and yes that is one of the consequences you have to accept if you invest in a company but neither had there been an increase in the dividend rate for at least the previous 10 years. If / when Stevedoring Services needs to raise more capital to invest in equipment it is not going to be easy.
This is just the beginning my friends… I count 10 large families that are leaving soon. Very sad to see them going but they are leaving for better environments for their families. With them, they take jobs and lots of money out of our economy. What most of us forget is that while yes, they do make a lot of money, they also spend a lot of it here: groceries for families of 4+, school tuition, family dinning out, business meetings dinning out, social activities, golf, paid nannies, cooks, cleaners…..
Keep making them feel unwelcome Bermuda – we’ll be left in their rear view mirrors on this 3rd world rock. Well done Bermuda!
Why does everyone keep saying we make them feel unwelcome. Please explain that one to me, I’m trying to get it. The expats i know love it here, and are having the times of their lives and feel lucky to be living here in Bermuda.
agreed
You’re joking. Right?
school tuition= warwick academy/saltus or bhs
What does that have to do anything. Yes, school tuition. All 3 of those schools. Without students, those schools close. Jobs lost. Bermudian kids with no private schools.
Dumb comment.
yea that pays teachers and staff, who buy groceries, pay rent, belco, gas,etc…. smh
also pays companies for maintenance and service: BAC, universal electric, tops, etc
cooks n nannies where most likely phillipino who in turn sendf thier money to phillipines
Correction it’s “FILIPINOS”. Yes, expats send money home to their home countries but they spend the more than half of it on the island.
It’s all dee UBP’s fault…..
How is Bermuda unwelcoming to expats and tourists?
Yes, tourist air arrivals continue to decline, but cruise ship passengers continue to rise. The ‘type’ of tourist has changed and Bermuda must adapt to this change. Tourists are not turning their back on Bermuda.
As for expats, how are we unwelcoming to them? Expats generally enjoy a better standard of living compared to where they came from…and that is a fact. So what has this government done to make expats feel unwelcome?
Someone please enlighten me….how as this government scared away tourists and expats?
Flikel, ask Goverment………We a;ready know how this has come to pass. Cruise ships have been comming here since the 1800′s….If you don’t know the answers to your questions, why ask them. Then again, this is your platform…..
Flikel – have been in a coma for the last 13 years?
I’m not even going to justify that with an answer. You know very well why expats don’t feel welcome and you know why tourists don’t like coming here. Come to think of it, I haven’t read about any tourists being robbed, mugged, beaten, accosted in their own hotel room lately…oh wait, there aren’t any tourists available for muggings, beatings…
Wake up Flicky – don’t ask stupid questions.
Well Flikel,
It is the government.
Work permits: There are many examples like this that do not see the day of light. Big Re-insurer in Bermuda wants to hire an expat to start a project management office locally. Work permit is denied by gov, So the company says to the person we will still hire you but can you locate to our Dublin office. So the fellow starts the PMO and staff’s it from ground up in Dublin. What is lost is. 1. very knowledgeable world class worker that his staff could learn from 2. 10 jobs that would of been located in Bermuda 3. adding to point 1 a Bermudian after some years of working up the ladder would take that expats position. All gone and never coming back.
Just one of many examples that you will never read in the newspaper.
Flickel,
I recently left by choice after living in Bermuda for 3 years. I can honestly say I did not have a better standard of living in Bermuda then where I am from and that is a fact. I lived paycheck to paycheck as my rent was outrageous as were my utilities, phone bill, internet bill, grocery bill, etc. I didn’t save very much living there whereas I used to save $2,000-$3,000 a month where I am from. I moved to Bermuda for the experience and I do not regret it one bit as I met some wonderful people and had a great time however the mentality of we should be thankful Bermuda gave us the opportunity is ridiculous. A lot (not all) Bermudians do not want us there and that is a fact.
As for tourists, airlines that offer deals to come to Bermuda is great however once you get there its impossible to stay there as hotel rooms are way overpriced and food prices are ridiculous. No family can afford a week long vacation there as you can go to places for cheaper and has more to offer. If you look at the Cayman Islands, Mexico, Puerto Rico, Bahamas, etc you can find places that are relatively cheap and very nice to stay in. Plus a majority of the hotels are on beaches which you can not say for most of Bermuda hotels. Cruise ship passengers don’t contribute to the economy at all so who cares if the numbers are up? They eat 3 or more meals on the boat a day and tend to not spend any money other than on their buss pass. Once the cruise lines start to get sick and tired of their passengers getting robbed or mugged they too will stop coming. Bermuda is in trouble and I just hope people that can make a difference wake up before its too late.
I don’t know why you all bother responding to Economics 101. He or she has obviously been doing shots of kool-aid back to back for the past 12 years.
You forgot the “2″ ………….’sBwahaaaaaa
..Just In Case. It seems that someone else also likes my chosen pen name “Truth”. I shall now be as captioned.
Clafe….ya killin me bie…
Back on topic. Yes, many expats are leaving Bermuda…and have been doing so very quietly for the last few years and for various reasons. Some attrition is normal, however I believe that uncertainty is our biggest liability at the moment.
Also, the tone that this govt set for expats has not been welcoming (especially under the good Doc’s tenure). Xenophobic rants by certain govt officials, coupled with discriminatory policies (Bermudians married to foreign spouses needing licenses to purchase property), veiled threats and innuendo coupled with the deterioration in personal safety and security has hastened the exodus. We are slowly but surely strangling that golden goose.
The golden goose, that fed a small portion of our population. The real problem in this country is that a few folks got very, very rich of International business,some did reasonably well and the vast majority managed to exist.
There are only two people responsible for the state of Bermudas Economy TODAY! B&B. Just do your Homework.
Going to Bermuda is like dating a really attractive but self centered woman. Her attitude is that you are lucky to be there – and she doesn’t need to contribute anything to the relationship.
Getting intimate with her would be a huge disappointment as she’d likely not participate at all.
What happens to woman like that is they lose their appearance as they get older, and they have nothing else to fall back on. In older years they are usually miserable and alone.
That’s where Bermuda is headed.
Interesting analogy…For a moment there I thought you were referring to the US, England and most of Europe.