Govt. to scrap advance demurrage

Apr 28, 2026 News

---

…gives importers 21-day grace period, amid port congestion

(Kaieteur News) – Faced with mounting shipping bills, upfront demurrage payments and costly delays, businesses in Guyana could soon see relief as the government moves to eliminate advance demurrage and introduce a 21-day grace period before charges apply, measures authorities say could ease the financial strain on importers and stabilise the cost of goods.

The proposals were outlined during a stakeholder consultation hosted yesterday by the Maritime Administration Department (MARAD) under the Ministry of Public Utilities and Aviation on laytime and demurrage, held at Duke Lodge in Kingston, Georgetown, that brought together shipowners, brokers, charterers, agents, managers, operators and shippers.

Minister of Public Utilities and Aviation Deodat Indar said the move is aimed at addressing rising import costs driven by port congestion and current billing practices. “Imagine that you have to pay advance demurrage,” Indar said. “The laytime for the vessel is 72 hours, but once that expires you begin to pay demurrage. This is carrying up the cost of importation in the country.”

He added that port activity has surged sharply in recent years without corresponding infrastructure expansion. “In 2020 we had 2,513 port calls. At the end of 2025, we had 3,700 – a 65 per cent increase. But there was not more built out of commercial wharfing facilities,” he observed, noting that congestion and scheduling delays are translating directly into higher demurrage costs that are ultimately passed on to consumers.

Indar said the government is now working on a policy framework to implement the 21-day window before demurrage applies and to remove advance payments, which he described as administratively burdensome for importers.

Legal Officer at MARAD, Tiffany Hohenkirk, said the consultation was intended to test the proposals and examine their implications. “A vessel arrives on time, all of the documents are in place, but cargo operations take just a little longer than expected. One day becomes two, two becomes four, and suddenly what should have been a routine port call turns into tens of thousands of dollars in demurrage,” she said.

Hohenkirk cautioned, however, that eliminating advance demurrage could shift financial risk to shipowners, who may respond by increasing freight rates. “There is a possibility that the intended cost savings may be neutralized or even result in higher overall shipping costs,” she noted, adding that while ending advance demurrage could bring benefits such as reduced upfront costs, greater flexibility and more predictable pricing, there are also risks, including higher freight rates, reduced vessel traffic and potential declines in port competitiveness.

Chairman of the Shipping Association of Guyana, Komal Singh, pointed to congestion as a central issue and criticised the growing use of advance demurrage charges. “You need to pay a couple days of demurrage in advance… then you have to go through a very long process to get that money refunded. That should not happen,” he said.

Businessman Nicholas Boyer questioned whether infrastructure gaps are at the root of the problem. “Do we have a challenge in the infrastructure?” he asked, noting that import volumes have increased significantly without matching expansion in port capacity. He said inefficiencies along the logistics chain, from shipping lines to customs approvals, also contribute to delays.

Vice President of the Guyana Customshouse Brokers & Clerks Association, Christopher Matthias, highlighted inconsistencies in how shipping lines calculate free time before demurrage.

“Some lines tell you that the free days commence when the vessel arrives in port, some say when it comes alongside the wharf, some say when it starts to discharge and others say when it is finished discharging,” Matthias said. “So you don’t know when your actual free days commence.”

Customs broker Rajendra Rajcoomar said administrative errors also contribute to delays and costs. “Sometimes the shipping line does make mistakes in terms of the manifest and it takes three to five days to be corrected,” he said. “Why should the importer suffer because of their mistake?” A representative of Trident Marine Trading Inc. raised operational concerns, including delays caused by limited pilot availability at the Bharrat Jagdeo Demerara River Bridge. “We have a problem where our vessel has to be stopped… and wait until there’s pilot availability. This costs us demurrage,” the representative said, adding that there are only six local pilots available to guide vessels.

---

• advance demurrage, demurrage payments, MARAD, shipping bills

---