PHILIPSBURG:--- Member of Parliament Francisco Lacroes is asking the government: What is the plan? New freight surcharges will push food prices higher and expose St. Maarten’s economic vulnerability, like the Guyanese say: We get ketch wid we bukta down!
The people of St. Maarten should pay close attention to a recent notice issued by King Ocean Services regarding substantial increases in bunker surcharges on cargo shipments between United States ports and the Caribbean, effective April 12, 2026.
At first glance, this may appear to be a technical adjustment in shipping rates. In reality, it translates directly into higher prices for food and essential goods across our island, a significant rise in the cost of living. A standard 20-foot container surcharge will rise from approximately 200 US dollars to 700 US dollars. A 40-foot container will increase from 400 US dollars to 1,400 US dollars. Refrigerated containers used to transport perishable goods such as meat, dairy products, vegetables, and other food items will also face steep increases.
For St. Maarten, these increases are particularly concerning because of our heavy reliance on imports. Due to limited agricultural capacity and land availability, the island imports the vast majority of its food supply. Studies and economic assessments indicate that between 90 and 95 percent of the food consumed in St. Maarten is imported, much of it shipped through distribution hubs in the United States.
Trade figures further illustrate this dependency. In 2022, the value of goods imported into St. Maarten was estimated at approximately 1.1 billion US dollars. More than 77 percent of these imports originated from the United States. These numbers demonstrate how closely our cost of living is tied to shipping and freight costs. When shipping costs increase, prices across the economy tend to follow. Importers must pay higher freight charges. Retailers face increased wholesale costs. Ultimately, consumers feel the impact at the supermarket and in everyday household expenses. Many families in St. Maarten are already struggling with the high cost of living. Groceries, utilities, and housing continue to place pressure on household budgets. Any additional increase in food prices will disproportionately affect working families, seniors, and vulnerable members of our community. This situation requires attention and transparency from our government. The Ministry of TEATT is responsible for our economic affairs, and the Ministry of Finance should assess the impact of these shipping increases on local prices and supply chains.
In particular, several important questions arise. What monitoring mechanisms are in place to track how shipping costs increase and the effect on retail food prices? What measures exist to ensure that increases in freight charges do not lead to excessive markups along the supply chain. And what strategies are being considered to strengthen St. Maarten’s long term food security.
Our island economy depends heavily on external trade and transportation links. That reality makes it essential for policymakers to anticipate developments that could place additional pressure on our people. The announcement of higher shipping surcharges should therefore not be ignored. It is an signal of price increases that will affect households across the island. The people of St. Maarten deserve clarity on how these developments will affect their daily lives and what actions government intends to take in response. When changes in international trade threaten to raise the cost of basic necessities proactive leadership and informed policy discussions are essential.
“Shipping costs may originate far beyond our shores but their consequences are felt here at home. Ensuring that those consequences do not place an unfair burden on the people of St. Maarten must remain a priority” MP Lacroes stated.
