Consumer and manufacturing groups in Barbados have issued a joint alert regarding the transformation of temporary shipping surcharges into permanent cost burdens, warning of imminent price increases for essential goods. The Barbados Manufacturers’ Association (BMA) and Barbados Consumer Empowerment Network (BCEN) revealed on Monday that peak season surcharges (PSS) originally designed for seasonal demand fluctuations have effectively become perpetual additions to freight costs.
According to the organizations, what began as limited-period charges for holiday season shipping demand has evolved into a continuous five-month surcharge period immediately followed by General Rate Increases (GRI), creating an unbroken cycle of escalating transportation expenses. This structural change in shipping pricing directly impacts production costs and consumer prices throughout the Barbadian economy.
BCEN emphasized that these increased freight charges inevitably transfer to consumers through higher prices for food, household items, building materials, and daily essentials. Meanwhile, the BMA warned that the compounding effect of extended surcharges and subsequent rate increases is eroding the competitiveness of local manufacturers operating in an already challenging economic environment.
BMA Executive Director Shardae Boyce explained the manufacturing sector’s vulnerability: ‘Many local manufacturers import raw materials and machinery since not every input can be sourced locally. When shipping carriers impose sudden and unregulated surcharges, it directly increases our production costs with limited absorption capacity.’
Both organizations stressed they don’t oppose legitimate cost recovery by shipping providers but called for greater transparency, proportionality, and accountability in how surcharges are structured and applied to Caribbean shipping routes. They specifically urged the new Mottley administration to introduce budgetary mechanisms in the upcoming April 1 financial plan that enable government-manufacturer collaboration to lower prices on locally produced goods.
The groups plan to meet with the Fair Trading Commission, government ministries, and Barbados Port Inc. to seek clarity and constructive dialogue. They also encouraged shipping firms to engage openly with interest groups on developing fairer and more transparent freight pricing structures for small island economies.