More goods coming in but at a higher cost – Indar concerned for businesses, families

As Guyana’s trade continues to grow, Minister of Public Utilities and Aviation Deodat Indar is warning that rising shipping costs could place increasing pressure on importers, consumers and the wider economy.

Speaking at the opening of the 31st Caribbean Port State Control Conference on Tuesday, Indar said vessel traffic in Guyana has increased by 42 percent since 2020, while imports have nearly tripled during the same period.

He said containerized imports have risen from approximately 42,000 TEUs annually to close to 150,000 TEUs, reflecting the rapid expansion of economic activity.

However, Indar cautioned that the growth comes at a time when global shipping costs and transportation challenges continue to impact countries like Guyana.

“The shipping cost has now become difficult for importers to bear,”  Indar said, noting that higher shipping expenses and imported inflation ultimately affect businesses, households, and the economy.

He stressed the need for greater attention to imported inflation, especially as global events continue to affect energy prices and supply chains.

“When oil prices sky high, everything goes haywire, people suffer,” Indar said.

Indar also raised concerns about the limited expansion of shipping capacity in the Caribbean, noting that the same shipping lines have operated regional routes for decades while transporting significantly higher volumes using similar assets.

“For decades and decades, we have one set of shipping lines that have been plying the route and not increase the fleets or their assets they use the same assets to transport far more, three times the volume just for Guyana alone,” he said.

Indar further pointed to possible disruptions at major global trade routes, including the Strait of Hormuz, as factors that could create additional challenges for shipping-dependent economies.

With Guyana’s trade volumes continuing to rise, the minister emphasized the need for stronger maritime systems and solutions to manage costs and protect the country’s economic progress.