There have been radical changes at ports in the Baltic states over the past decade. Huge investments have been made and entry into the EU removed one of the last great stumbling blocks to smooth shipment – Customs clearance.
Dougie Bryce, a director of TTS (Shipping) Ltd, remembers the early days in the Baltics, when experiences of loading ranged from traumatic to hilarious.
TTS has offered services from Finland and Sweden since its formation in 1988. The first sailing from the former Soviet Union was from St Petersburg in June 1992 and from Tallinn a couple of months later.
Mr Bryce recalled: “The first vessel in Tallinn only picked up 800m3 but took three days to load. At first all shippers were required to have their own contract with the port authority and nothing could be delivered to the port more than three days before a vessel’s expected arrival date. That meant a high level of risk for TTS as the full cargo booked more often than not either didn’t get delivered or customs-cleared in time.
“TTS quickly implemented a Scandinavian-style FAS arrangement after some reluctance from the port authority – agreeing to pay them all costs from FCA to FOB on receipt of invoice – effectively on sailing. The deal included an element of free storage for shippers so most of the above issues were solved in one stroke.”
Mr Bryce said that FAS (FCA) terms have become the norm in most ports, with Riga the exception. “Many Latvian shippers still sell on an FOB or C&F basis, preferring to arrange and pay for loading at their own preferred berth.”
In Riga in the 1990s, he said, every quay started touting for business with equipment of varying levels of sophistication and workforce experience to match.
“Each had their supporters and, to this day, whilst huge amounts of money have been spent improving and developing modern terminals, vessels still have to move from berth to berth collecting parcels from each. This can be a scheduling nightmare, balancing the draft at each berth against whether or not the cargo has to be loaded first or last, under or on deck, and so on.”
Mr Bryce said Ventspils and Klaipeda have followed the trend, going from slightly rundown post-Soviet conditions to highly efficient modern ports handling timber with care and speed.
“The situation today is radically different from the early 90s. Investment has produced improved turn-around times, and receiving cargo and loading of vessels 24/7/364, excluding New Year’s Day, is also the norm.”
With regard to the Baltics’ entry into the EU, Mr Bryce said while customs clearance will improve, it remains to be seen what will happen with transit cargo. “Will it be cleared at the new EU border or in the UK? Either option will have an impact both good and bad. Customs clearance charges should disappear – but so will some jobs.”
