The Government of Guyana has taken a decisive step to address rising shipping costs and operational inefficiencies in the maritime sector by convening a high-level public consultation on demurrage and laytime challenges.
The consultation, organised by the Maritime Administration Department (MARAD) under the Ministry of Public Utilities and Aviation, brought together a broad range of industry stakeholders. Representatives from shipping lines, brokerage firms, agents, and other key players met at Duke Lodge in Kingston on Monday to examine the sector’s issues and explore potential solutions.
Minister of Public Utilities and Aviation, Deodat Indar, explained that the engagement was initiated following a Cabinet directive to seek broader stakeholder input on reforms to ease cost pressures in the industry. He emphasised the government’s intention to work collaboratively with private-sector actors to develop practical and sustainable solutions.
During the session, authorities presented three major proposals for open discussion. One of the most significant measures under consideration is a change to demurrage rules, under which charges would begin only after 21 days from a vessel’s docking at the wharf. Stakeholders indicated that such a shift could substantially reduce costs typically passed on to importers and, ultimately, to consumers.
A second proposal aims to strengthen the conditions governing charter party agreements. While acknowledging that these agreements are private contracts, Minister Indar stressed that they must align with national interests and should not undermine the sector’s efficiency or stability. He emphasised that no agreement should be permitted to harm the broader maritime environment.
The third proposal is to abolish advanced demurrage, which many stakeholders have identified as a significant financial burden. Participants suggested that its removal could ease cash-flow pressures and contribute to a more balanced commercial framework.
Discussions also addressed wider operational challenges, including cargo-handling delays and port inefficiencies, as well as the broader implications of demurrage for freight costs. Stakeholders raised concerns about how these issues affect vessels calling at Guyana and Guyana’s shipping environment’s competitiveness.
Legal Officer Tiffany Hohenkirk presented several industry-backed recommendations, noting that while the proposed reforms could provide meaningful relief, they also mark a notable departure from long-standing commercial practices in the maritime sector.
Despite the complexities involved, Minister Indar reaffirmed the government’s commitment to reducing shipping costs and improving efficiency. He emphasised the importance of ongoing dialogue with stakeholders, noting that continued collaboration will be essential to shaping reforms that are both effective and sustainable for Guyana’s maritime industry.