Government’s introduction of new port fees for cargo, the highest bump of which impacts the importation of vehicles, has been met with a warning that it will bring more cost-of-living strain for consumers.
Opposition Leader Roy McTaggart, in a statement on the increases Sunday evening, described the rise in fees as a “surprise”, saying its introduction “will worsen the cost-of-living crisis”.
“This unexpected increase comes on top of the Premier’s $120 Million list of tax increases announced during the recent December budget session,” he said.
Fees increase for imported vehicles
The new fees, which took effect on 1 Jan., were not publicised, but instead gazetted as amended port regulations.
Under the new fee structure, cargo dues for imported vehicles will be calculated at flat rates, which is a new provision.
According to the amended schedule, the rates for a vehicle weighing less than six tons will now be $300, and for a vehicle weighing six tons or more a fee of $500 will be applied.
“These Port Fee increases will undoubtedly impact the cost of living, as will other increases the Premier and her Government are planning,” McTaggart said.
“We wonder how many more surprise tax increases we will learn about in the coming months as the Government continues to fund its vast spending spree in the last year of its term. We, in the Progressives Opposition, will be watching,” he added.
The Cayman Compass has reached out to Port Authority leadership for clarity on the fees and how they are applied, and is awaiting a response.
We also awaiting a comment from the Chamber of Commerce on the increased fees.
Premier Juliana O’Connor-Connolly, in her budget address in December, spoke to a rise in fees, but there was no mention of a port dues increase.
She pledged that government aims to rake in around $130 million in income from new revenue measures over 2024-2025, insisting that those fee increases won’t impact “the little man”.
She spoke to new fees, including increased immigration fees and stamp duty for high-end homes – as part of initiatives to help fund government’s more than $2 billion expenditure for this two-year cycle.
McTaggart reminded that he warned during the budget debate that the government’s “skyrocketing spending spree would require increases in duties, fees, and other taxes as they try to balance the books”.
He said in his experience that nearly every tax increase has a “tangible effect on people’s wallets in some manner or another”.
Trucking fees increase
Other increases in the port dues include a bump in the charge for trucking cargo from ship-side to the distribution centre in Industrial Park.
A container 20 feet long or less will now cost $60; a container more than 20 feet long but not more than 40 feet long will cost $120; and for a container more than 40 feet long, the cost will be $135.
Handling charges, heavy lift charges and tailgate charges for containers have increased from $353.81 to $400 for dedicated dry containers 20 feet long, and from $16.65 to $20 for various dry containers 20 feet long.
Charges for dedicated and various refrigerated containers 20 feet long have moved from $16.65 to $20 in each category.
Storage charges have also increased at the port, with fees for cargo other than vehicles, per ton or part ton, now $5.25 and for vehicles, for each day or fraction of each day, the cost has risen to $25.
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