Bahamians should brace for an increase in the cost of commodities in the upcoming quarter, as increases in global shipping costs continue to disrupt supply chains and drive up prices, businessman and leader of the Bahamas Democratic Movement (BDM) Cassius Stuart told Guardian Business yesterday.
Stuart, who is the chief executive officer of medical supplies company Carib Med Limited, said he has experienced about a 400 percent increase in the cost of the 20-foot shipping container he regularly ships from the Far East to The Bahamas.
“Whether it’s toothpaste, whether it’s cars, whether it’s whatever commodity, we are experiencing a high price on shipping which will drive the cost up drastically within the next quarter,” said Stuart.
“As Bahamian we must brace for the increase in costs across the board. We must begin to monitor our spending habits and adjust accordingly. As somebody who is in the industry and who is affected by it, we just have to now brace ourselves for what’s pending.”
A shipping industry expert who spoke on condition of anonymity because of his position, told this paper that the COVID-19 pandemic slowed the world’s shipping and hampered many industries. As the global shipping network and trade begins to ramp up, the “perfect storm” of the pandemic, increased fuel prices, former US President Trump’s trade war with China, a global container shortage and shortage of truck drivers in the US have caused the price of moving goods to skyrocket.
“Because there is such a high demand to get the US economy back up and running, trucking costs have gone up,” he said. “You are seeing inflation because things are starting to rebound. It’s supply and demand right now. Restarting that juggernaut, which is a global supply chain management system, it takes time.”
The expert contended that the rise in prices will likely abate by the end of the year.
The owner of a car part supplies company, who voiced his shipping concerns to Guardian Business and spoke on condition of anonymity, said he has already experienced delays in shipping and a $300 percent increase in the cost of his shipment from China.
He lamented he will likely have to go to the bank in order to secure the funds to pay for his next three shipments. However, his biggest concern is those those shipping prices will have to be passed on the the customer.
The post Brace for price increases in Q4, says shippers and commodity suppliers appeared first on The Nassau Guardian.
source https://thenassauguardian.com/brace-for-price-increases-in-q4-says-shippers-and-commodity-suppliers/
No comments:
Post a Comment