Barbadian consumers could soon face a sharp rise in the cost of goods because of the ongoing longshoremen’s strike in the United States, which is causing significant disruptions at key ports.
As the strike drags on, the region should be bracing for increased shipping costs and delays, with potential long-term impacts on the prices of both perishable and nonperishable items, warned Gavin Bovell, coordinator of the Logistics and Supply Chain Management Master’s programme at the University of the West Indies, Cave Hill campus.
“The longer this strike continues, the more we are going to see significant cost increases across the board,” Bovell told the DAILY NATION yesterday.
Shipping containers
The logistics expert explained that the strike had already led to surcharges such as peak time fees, congestion surcharges and priority fees, all of which would raise the cost of shipping containers to the Caribbean.
“December is around the corner and these last three months are the busiest time of year for shipping. With the surcharges piling on during this period, we’re looking at a considerable rise in the cost of containers, which will ultimately affect consumer prices.”
With many Caribbean nations heavily reliant on imported goods, especially from the United States, any disruption in the supply chain could have significant consequences for the region. Rising surcharges, delays, and bottlenecks at ports are already being felt.
Bovell also highlighted the vulnerability of perishable goods like fresh fruits and vegetables, especially given Barbados’ limited cold storage capacity.
“Our cold chain infrastructure is still insufficient to handle large quantities of perishables for an extended period,” he said. While some companies have made strides in developing cold storage solutions, “there’s still not enough to fully mitigate the impact and that could lead to spoilage and even higher prices”.
The strike’s impact extends beyond logistics and infrastructure, with panic buying emerging
as another risk. Bovell pointed to the role of consumer behaviour in exacerbating the situation.
“When people see delays or hear rumours of shortages, they start panic buying,” he noted. “This drains inventory faster than normal, putting more pressure on suppliers to reorder – at a time when the cost of reordering is already high due to the strike”.
Bovell emphasised the importance of CARICOM’s ongoing efforts to harmonise sanitary and phytosanitary (SPS) standards across the Caribbean.
Standards
“Once CARICOM gets those standards aligned, we can start sourcing more products from regional producers rather than relying on the US. This would reduce both costs and lead times,” he said, adding that this shift would also help local farmers build capacity and achieve economies of scale. However, he cautioned that “progress is slow, and in the meantime, we’re going to feel the pressure”.
Bovell’s outlook for the cost of living in the Caribbean was closely tied to how long the strike lasts.
“If the strike continues, especially into the busy holiday season, we will definitely see an increase in the cost of goods,” he said. “Things like detention and demurrage charges will start piling up, and those costs will eventually make their way to consumers. If this situation isn’t resolved soon, we could be looking at a sustained rise in prices well into next year.” (CLM)
