Shipping | SAJ urges shipping sector to prepare for high-value cheque changes

The Shipping Association of Jamaica (SAJ) is urging shipping and maritime businesses to act quickly to prepare for changes to the processing of high-value cheques, warning that inadequate preparation could disrupt payments, supplier relationships, and the movement of cargo.

Beginning September 1, 2026, cheques valued at J$1 million or more will no longer be processed through Jamaica’s national clearing system. The threshold will be progressively reduced to J$500,000 on March 1, 2027 and J$100,000 on September 1, 2027, ahead of the planned completion of the cheque phase-out on March 1, 2028.

The timetable was highlighted by Barbara Hume, CEO of the Jamaica Bankers Association (JBA), in a recent JBA report to the Private Sector Organisation of Jamaica, which outlined the practical steps businesses should take to transition from cheques to electronic payment channels.

SAJ President Corah Ann Robertson-Sylvester said the first phase has particular implications for the shipping and maritime community, where transactions frequently involve significant sums and are often tied to strict operational deadlines.

“Shipping depends on the timely movement of both cargo and funds. Payments to service providers, suppliers, contractors and other partners may be connected to the clearance or movement of cargo, so any delay or failed transaction can have consequences across the wider logistics chain,” Robertson-Sylvester said.

“We are encouraging companies throughout the industry to review their payment arrangements immediately. September 1 should not be the date on which a business first attempts to determine how it will replace a high-value cheque.”

Shipping agents, terminal operators, freight forwarders, customs brokers, haulage companies, warehouse operators, importers and other businesses supporting the maritime sector are being encouraged to identify all incoming and outgoing cheques valued at J$1 million or more.

Companies should then consult their banks to determine the most appropriate replacement payment method. The JBA report identified the Real Time Gross Settlement system and the Automated Clearing House as two of the available electronic channels, depending on the value and nature of the transaction.

Businesses should also review their accounts payable and receivable procedures, procurement arrangements, contracts, payroll processes and refund systems. Customers and suppliers will need to be advised of revised payment instructions and internal teams should understand the new approval, reconciliation and escalation procedures.

Robertson-Sylvester said preparation must extend beyond simply choosing a different way to transfer funds.

“This transition requires businesses to look at the entire payment process, from the person who initiates a transaction to the person who approves it, confirms the beneficiary information and reconciles the account,” she said. “Companies should speak with their banks, test their systems, and communicate with their customers and suppliers before the change takes effect.”

The move towards electronic payments is expected to provide faster settlement, greater payment certainty and reduced dependence on paper-based processes. However, the transition also creates increased exposure to impersonation, fraudulent payment instructions, beneficiary substitution, social engineering and cyber disruption.

The JBA has recommended that businesses introduce minimum controls such as dual authorisation for high-risk payments, independent verification of new or amended beneficiary details, multifactor authentication, restricted system access, and daily reconciliation of transactions.

Companies should also establish clear procedures for reporting suspicious or failed transactions to their banks and preserving any relevant evidence.

Robertson-Sylvester cautioned businesses against accepting changes to payment instructions solely by email, particularly where large transactions are involved.

“A request to change banking information should always be independently verified using a trusted telephone number or another established contact method. In an industry where payments can be substantial and time-sensitive, strong controls are essential,” she said.

The JBA report also points to a challenging economic environment for businesses. Annual inflation reached 6.7 per cent in June, while official data showed a 4.1 per cent year-on-year contraction in economic activity during the first quarter of 2026. The report noted that higher prices and input costs could increase working-capital requirements, while imported materials, fuel and reconstruction activity continue to influence demand for foreign currency.

These conditions are especially relevant to shipping and logistics businesses, which operate within an import-intensive sector and must frequently manage both Jamaican and United States dollar obligations.

Robertson-Sylvester said the payment transition should therefore form part of a broader review of financial and operational resilience.

“The phase-out of cheques is an important step in the modernisation of Jamaica’s payment system, but the benefits will depend on how well businesses prepare,” she said. “Our message to the shipping and maritime community is to begin the transition now, strengthen the necessary controls, and work closely with banking partners to ensure continuity.”

The SAJ is encouraging companies with questions about the treatment of particular cheque transactions, including on-us or house cheques, to obtain guidance directly from their respective financial institutions.