Docks cargo declines in sluggish economy
Bermuda’s economy has received an alarming wake-up call with new information on declining cargo arriving into the island, an important indicator of Bermuda’s fiscal health.
Container volume at Hamilton docks has been in steady decline for the past seven years, port operators have confirmed, a reflection of the shrinking population.
The plunge in tourism activity through major hotel closures and the depressed air visitor figures are related.
Cheryl Hayward-Chew, board chair at Polaris Holding, has reported in the company’s annual report that Bermuda’s sluggish economy has continued to impact the parent company to Stevedoring Services, the firm operating Hamilton docks.
The disturbing trend reflects a more complete picture of what was outlined in the company’s interim report in September.
The Polaris chief executive, Randy Rochester, added in his first annual assessment: “SSL has always been a consistent performer despite container volume numbers in steady decline since fiscal 2017 and unlikely ever to return to fiscal 2008’s heights.
“While there have been multiple reports of construction developments planned for Bermuda, infusions that would have a significant financial impact on SSL’s volumes, and the prosperity of the country, to date we have not seen these projects come to fruition. SSL has instead been able to manage its bottom line through cost containment and operating efficiencies.”
Ms Hayward-Chew told The Royal Gazette: “Stevedoring Services Ltd’s fiscal 2024 container volumes, measured by 20ft container equivalents or TEUs, were down 4.8 per cent below fiscal 2023, more than 10 per cent below fiscal 2019.”
She said break bulk, or non-containerised cargo, increased nearly 8 per cent over fiscal 2023 but was still 16 per cent below fiscal 2019.
The chairwoman stated: “The sluggish economy continues to dampen cargo volumes.”
The annual report tracked 20ft equivalent container moves for the fiscal year to the end of March 2018 at 37,906, down to 35,523 for the period to March 2024, and 35,198 for 2023.
The report points out that it is through the bread-and-butter daily TEU cargo coming into the island – imported household purchases, retail goods, consumables, food – that SSL’s success is dictated, and more broadly a reflection on the fiscal health of the country.
“Cargo into Bermuda in fiscal 2024 remained more than 10 per cent below pre-pandemic levels and was 25 per cent less than Bermuda’s peak 15 years earlier.
“Nothing correlates more closely to the island’s cargo volume activity and economic prosperity than Bermuda’s working population, with current and future figures falling.
“Simply put, with Bermuda’s population getting smaller, and older, the level of cargo importation is shrinking, and with that SSL’s revenue.”
Revenue from stevedoring declined from $11.92 million in 2018 to $11.1 million in 2024.
SSL has a six-year extension to its terminal operators licence, positioning it to remain at its present location until February 2032.
The existing agreement with the Bermuda Industrial Union continues until 2027.
• See more on the 2024 Polaris Annual Report in Related Media
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