Food hike likely

Already grappling with the high cost of living, Barbadians could soon be facing a hike in the cost of most food products, as well as basic services.That’s because local shipping agencies have been slapped with a burdensome two-tiered fee hike on containerised goods from the United States, which will be passed on to consumers. Sales manager of Dacosta Mannings Shipping, Shone Gibbs, told the SUNDAY SUN consumers would eventually feel the effect of the hikes. “It will be felt by all consumers. But it wouldn’t be reasonable to expect the importers and shipping agencies to bear the entire cost. What we should hope for is that market forces dictate what happens to prices in the long run.”The increase has been placed on regional shipping agencies by the Caribbean Shipowners Association (CSA).The first, a general rate increase (GRI) is scheduled to take effect on September 5, and the second hike, a peak season surcharge (PSS), should start on October 10.Shipping agencies will have to pay a GRI of US$50 on 20-foot containers, US$100 on 40-foot containers, and US$113 on containers bigger than 40 feet. The PSS, which will run until December 12, will see US$150 charged on a 20-foot container and US$300 on a 40-foot container.But the Barbados Chamber of Commerce and Industry (BCCI) plans to delve right in, in an effort to protect consumers.“We shall arrange for urgent dialogue with local shipping agents to try and find alternate solutions to price increases,” acting president Lalu Vaswani told the SUNDAY SUN in an exclusive interview.“Further price increases at this time of continuing Barbadian consumer concerns about cost of living is likely to be counter-productive and not in the national interest,” the BCCI chief added.Vaswani said the chamber would also be consulting with its members to ascertain the impact on their import and export activities as a result of this announcement attributed to the CSA, and will provide a more detailed response shortly.According to Vaswani, the chamber had not yet been informed by member companies, or their local agents, of the CSA’s intended hikes.Meanwhile the Florida-based CSA is defending its actions.“The GRI will begin to restore freight rates back towards a commercially sustainable level needed to support competitive, reliable service. Member lines recognise the essential nature of their services and want to assure a continued competitive, service- oriented viability.“A shortage of containers and space available for exports from United States lasting through the peak season is expected,” the association said in a release.According to the CSA, a significantly higher demand for liner transport is projected, and coupled with a shortage of container equipment, not enough containers and space to meet demand for transportation of goods into the Caribbean may be available.“This early announcement of the PSS will allow exporters and importers to plan ahead and schedule as much of their cargo movements as practical prior to and following the peak season period.“The surcharge will enable carriers to recover the higher costs caused by the increased volumes, including equipment positioning, labour overtime, port congestion, cruise liners and extra loaders,” the CSA contended.“Adjusting prices to reflect seasonal demand is a common practice in many industries and is designed to shift peak demand to better match supply, thus avoiding service delays during peak periods,” stated the release.