Disruptions at the Port of Belize might appear normal, given their frequency over the last 5 years. In early March, an ongoing labour dispute between the Stevedores and the Port of Belize resulted in another disruption at the Port, where Stevedores did not load and unload ships destined for Belize. Looking beyond the intricacies of a complex labour dispute are the impacts the disruptions have on the goods we consume and on essential supplies. These costs affect businesses and consumers alike, impacting the overall economy and business environment. This article explores the effects of the recent industrial action and looks at its overall economic cost.

A look at the Immediate and Hidden Effects

Based on available figures, at least BZD $5 million worth of imports are affected by the disruption at the Port. These goods include lumber, packaging trays, rice seeds, industrial goods, and perishable goods such as oats, biscuits, cheese, and yogurt, which have a short shelf life and are prone to spoilage. For businesses, this means higher acquisition costs as delays at the port have a per-day cost. The potential spoilage of material means that goods that have been paid for will likely not be able to be put on the shelf at all. This is not only wasted money for the business owner but a lost benefit to the consumer, as the cost of the lost inventory may be passed on or shortages of certain products may result. The delay in industrial inputs also affects the productive capacity of some sectors; without certain intermediary inputs, they may not be able to continue production. This means lost revenue, lost productivity, and potential breaches of contractual agreements.

Export-wise, over BZD $2 million worth of goods are affected by the Stevedores’ actions. These exports include beans, lumber, pepper sauce, citrus and sugar products with destinations such as Trinidad and Tobago, Jamaica, the Bahamas, the US, EU, and UK. Recent data from the Statistical Institute of Belize (SIB) suggests that exports of these major goods have yet to recover to pre-pandemic levels, 2023 export values still being lower than 2019 as shown in the figure below.

The recent activity at the ports should not be seen in a vacuum. Industries like sugar also saw disruptions with the recent BSCFA dispute in January this year. As major earners of foreign exchange, we should be cautious about the potential runoff effects of industrial actions such as those happening now at the Port of Belize. Along with impacting the containers presently at the Port, these disruptions may have the effect of lowering Belize’s export competitiveness through higher costs and increased political instability.

Conclusion

While the labour dispute at the Port of Belize continues and the Government works to negotiate a solution, the cost of disruptions at the Port brought on industrial action should be highlighted. We—the consumers and business community—bear the cost of these actions through higher prices. After three years of record-high price increases due to supply chain bottlenecks, why should the consumer have to pay the price for a commercial dispute they have no role in? Why should the productive sectors bear the cost of the lost productivity and earnings when they are our major earners of foreign exchange and investment? These are questions that the Government and Stevedores have to contend with as this dispute continues.