Air conditioning importers raise prices due to rising transportation costs

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3 hours ago

With the budget set for Monday, several sectors gave in to inflationary pressures.

Price increases ranged from bread and other food items to newspapers and now air conditioners.

The latest increase came from a group of air conditioning importers on October 1. In a statement, the group said that over the past 18 months, the numerous economic effects of the covid19 pandemic on global imports have impacted air conditioning equipment and parts.

He pointed to the cost of freight which has gone from an average of US $ 2,500 to US $ 15,000 per 20ft container and from US $ 3,500 to over US $ 19,000 for a 40ft container from from China.

The increase in excise duties, excise duties, VAT, an increase in the prices of raw materials such as metals which increased by almost 40 percent and by 100 percent for other materials such as plastics and resin, forced local increases.

In its statement, the group listed the following suppliers: Koolmax, Wilog, Coleman, Supakool, Yellow Hat, General Appliance Parts & Services, Atlantic Air, Alpha Air Conditioning and Intense Cool.

Importers spokesperson Allan Julien told Newsday on Sunday that they had to adjust their pricing structure three times a year due to global market trends.

“In fact, prices have already gone up and freight continues to rise. Importers have seen increases every two months.

“It’s not just us who experience this, there are also other sectors. Prices go up too often. Importers simply cannot absorb the shocks anymore, ”he said.

The availability of foreign currency to pay vendors has also been a challenge for most businesses, Julien said.

“The increased transportation costs quoted in US dollars have further increased importers’ demand for AC power for the United States (currency) and its lack of availability has often resulted in equipment shortages and delays in the market.

“Any importer would like to see some availability of foreign currency in order to be able to transact. Hopefully we can see government intervention on duties, taxes or VAT, ”Julien said.

He said the purpose of the publication was to ensure transparency and to inform their stakeholders and clients of the current obstacles being encountered.

“We’re transparent because people will see the price increases and think its prices will go up and we’re greedy. But these are the realities we have faced since March of last year. “

At the start of the year to present, Julien said, sales have fallen significantly for the industry.