⚓️ Cayman Islands' port fees increase unexpectedly

The Cayman Islands' Port Authority (PACI) has announced a significant increase in some of its cargo fees, which could further inflate the already high cost of living. Despite Premier Juliana O’Connor-Connolly's previous assertion that the government's new revenue measures would not be inflationary, the port fee hike was not mentioned in her 2024/25 budget address. The new regulations, approved by Cabinet and gazetted on 21 December, reveal that from 1 January, some fees have doubled.

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Vehicle imports have been particularly affected, with the introduction of flat rates of $300 for a vehicle weighing less than six tons and $500 for those weighing more. Storage costs have also increased, and a new charge of $25 has been implemented for vehicles for each day or fraction of each day. The charge for trucking cargo from the ship to the Industrial Park distribution centre has also increased. Despite no official government announcement about the port fee increases, PACI has informed some of its customers about the changes.

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While O’Connor-Connolly insisted that the fee increases would not impact those on lower incomes, it is likely that merchants will pass on these increases to their customers, leading to further inflation. The new revenue measures were projected to yield an additional $52 million next year for government coffers and another $80 million in 2025, with increases in various administrative, regulatory, import duty, and environmental tax fees.

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