Shipping woes

Jan 30, 2026 Editorial, News

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(Kaieteur News) – The alarm bells are ringing once again and this time they are coming from two of the country’s most influential private sector bodies. The Guyana Manufacturing and Services Association (GMSA) and the Georgetown Chamber of Commerce and Industry (GCCI) have both raised serious concerns about skyrocketing shipping costs, persistent delays, and what have been described as “unconscionable” practices by shipping companies operating in Guyana.

These warnings must not be dismissed as routine business complaints. They point to a systemic problem that is quietly undermining local production, driving up consumer prices, delaying construction projects, and threatening Guyana’s economic momentum at a time when the country is supposedly booming.

At a news conference on Wednesday, the GMSA highlighted what many businesses already know too well: Guyana’s port infrastructure remains inadequate for large vessels, forcing importers to rely heavily on transshipment hubs. This inefficiency adds time, uncertainty and substantial cost to every container that enters the country. Even worse, shipping prices have not returned to pre-COVID levels, the association said. Where containers once cost around US$6000, businesses are now paying as much as US$10,000 to US$12,000.

That difference does not disappear into thin air. It is passed directly to consumers through higher prices on food, construction materials, household goods, machinery and raw materials. In other words, the ordinary Guyanese family is paying the price for shipping inefficiencies and what appears to be a lack of meaningful regulation.

The issue of unreliability may be even more damaging than cost. Delays mean businesses must stockpile goods in warehouses, incurring storage fees and tying up working capital. Warehouses, as the GMSA correctly noted, do not generate profits. They represent dead money, money that could otherwise be invested in expansion, hiring, or improving services.

For manufacturers operating on tight margins, this creates a serious strain. For construction companies working under fixed contracts and deadlines, the impact can be devastating. Missed delivery windows can stall projects, trigger penalties, and inflate budgets beyond control. These ripple effects slow national development and increase the cost of public infrastructure projects that taxpayers ultimately fund.

The GCCI’s intervention adds another troubling layer. The chamber has accused shipping companies of arbitrary fee increases, extended “peak season” pricing without justification, and prioritising foreign firms over local businesses. If even part of these claims is accurate, then the situation moves from inefficiency into the realm of exploitation.

Guyana is experiencing rapid economic growth driven largely by oil revenues and a surge in public and private sector construction. This growth has made the country an attractive market. But instead of benefiting from scale and increased shipping volume, local businesses are facing higher costs and worse service. That is unacceptable.

What makes the situation more frustrating is that this problem has been festering for years. The business community has met with shipping associations, customs brokers and stakeholders, yet little appears to have changed. Dialogue without results is not progress. At some point, government intervention becomes necessary. The State cannot continue to take a hands-off approach while a critical artery of the economy malfunctions. Shipping is not a luxury service. It is foundational infrastructure. Without efficient logistics, no manufacturing sector can thrive, no export strategy can succeed, and no cost-of-living relief can be achieved.

This calls for decisive action. Port infrastructure must be modernised to accommodate larger vessels and reduce dependence on transshipment hubs. Regulatory oversight of shipping fees must be strengthened. Anti-competitive behaviour, if present, must be investigated. Transparency in pricing structures should be mandatory, not optional.

Additionally, incentives should be explored to attract more shipping operators to the market and increase competition. A small group controlling access to trade routes creates conditions ripe for price manipulation. Competition remains one of the most effective tools for lowering costs and improving service standards. If Guyana is serious about diversifying its economy beyond oil, then logistics reform must become a national priority. Manufacturing, agriculture, tourism and exports cannot flourish under a shipping system that is slow, expensive and unpredictable.

The warnings from GMSA and GCCI should be treated as an urgent call to action. Failure to act now will only deepen the burden on consumers and weaken the private sector at a time when the country should be building sustainable economic resilience. Guyana’s economy should be moving forward, not stuck at the docks.

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• Editorial, GCCI, GMSA, shipping, woes

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