12% drop in container cargo as decline in economy bites

The Guyana Shipping Association has recorded a 12 percent drop in the amount of container cargo being imported for the year when compared to the same period last year.

A source from the shipping association said that the importation of containers was stable in 2015, and in 2016 there was an increase. However, as of January this year, there was a significant reduction in the amount of goods that was imported. The reduction would come as no surprise since local business owners have claimed that sales have declined since the year started.

At Laparkan, while statistics are not available, it is being reported that as of February, last, containers being imported have reduced by almost half the amount when compared to the same period three years ago.

One businessman on America Street, Georgetown, said that he usually imports clothing from Panama and would bring in at least three containers every three months. But since his shipment in December, last, he has not made any additional purchase.

“In December, we realized sales have dropped so what we did is, after the holiday, we put out stocks we already had, but we are not getting sales. Maybe a bag might sell today and a working suit will sell tomorrow…that is how it goes now,” the businessman said.

Businessmen have claimed that because of the decline in sales countrywide, they have reduced their spending as they are trying to cut back on expenses. Some have even laid-off employees to stay afloat.

On Friday, a number of store owners opened up to Kaieteur News about how business has been for the past few months.

One businessman in the furniture industry said that he has been doing business for more than 20 years and that the current decline in sales is the worst he has ever experienced.

While he does not intend to cut salaries, he is definitely laying off members of his staff. He asserted that if the slowdown in the economy doesn’t take a reverse pattern soon, he will be forced to implement more drastic measures.

The nightmare of having to shut down operations and close their doors is becoming more and more real for many businesses. Another businessman said that while migration has never been on the agenda for him and his family, they are now thinking about it.

“If I get an offer now, I am going to take it, because I think it is the only option available for my family. Things are really bad and I have been a businessman for most of my life, but things are just not working out.” Another businessman related the struggles that forced him to lay off two of his “very good” employees, just last week. While he was able to hold on to three others, the lack of income by the business has made paying salaries very difficult. His personal savings have been taking a brutal hit in this regard.

(Kaieteur news)