The Tribune

By YOURI KEMP

Tribune Business Reporter

ykemp@tribunemedia.net

Bahamian courier companies yesterday warned of a further shipping cost increase by summer 20202 with customers now holding back on spending due to growing economic uncertainty sparked by Russia’s invasion of Ukraine.

Kenneth Gibson, chief executive of Five Star Brokers, told Tribune Business that import demand has slowed down considerably over the past month coinciding with the conflict in eastern Europe. “My customers just don’t know how things are going to play out,” he said.

“I do know there are a lot of people that tell me they still have cargo on hold because of the jam-up in shipping, and then there is the scepticism around the market because of the war and stuff like that. The availability of produce is a big issue. Some people, quite frankly, don’t have a job. They are either out of their original business or they just aren’t working. These are the three things they are saying to me.

“People are saying they don’t know about the war and are sceptical about shopping because of it. They don’t want to put out any money because they don’t know what’s going to happen in the war.”

Latiska Barr-Carey, owner/operator of JUST Complete Coverage Customs Brokerage, added: “Since COVID-19 came the industry has been taking a hit in terms of cost of freight, availability of supplies and, as more of my clients are in the construction industry, building materials have been scarce.

“For the past two years we have been having challenges in terms of finding materials or sourcing materials outside of the US for our clients for their various projects here within The Bahamas.”

Ms Barr-Carey continued: “Personally, in terms of the war that’s happening now with Russia and the Ukraine, we have not felt the effects as yet. There are delays, but these are delays that were happening well before the war broke out and started from COVID-19, but we are anticipating some fall-out from the war.

“The thing about it is that with the populace here in The Bahamas, unless you bring it to their attention, a lot of persons are not aware of what’s happening unless they are in the midst of it. For example, we have to interact day-to-day with our international partners and suppliers, so when I revert back to our clients that’s when they are brought up to speed at home in The Bahamas.”

Ms Barr-Carey said consumers will be feeling the “residual effects” of the Russia/Ukraine conflict come summer 2022. She added: “For example, freight from Spain would have cost you $1,500 prior to COVID-19, but during COVID-19 the LCL (less than container load) shipping cost went up to $8,000 for roughly just about three pallets.

“The projection for a 15-foot container could average over $10,000 very easily by the summer. In fact, we’re already seeing 40-foot containers costing over $10,000 depending on where it’s coming from. You can get cheaper container prices from the US, but when you talk about outside of the US, you’re looking at spending upwards of $10,000 depending on the various ports and whatever.”