At the top of the news we told you about the Yo Creek Compromise agreement - which - properly named - is the Fourth Addendum to the Commercial Agreement between ASR/BSI and the BSCFA.
And what does it feature?
Well, first off, it's a two year agreement which lasts until 15th November 2025 - and the parties commit to start negotiating a new "long term" agreement by August of 2025.
Second, it permits "an economic analysis to be done by Hugh O'Brien to determine, quote, "whether terminal handling charges and throughput fees, which are costs disputed by the BSCFA, are justified as port charges." End quote.
And now here's the important part - which caused days of dispute; it specifies exactly what the analysis is to include. It says, "the analysis shall exclusively involve a determination of (a) whether terminal handling charges are indeed charged to and payable by BSI for direct consumption sugar and (b) an analysis of the actual costs of stevedoring and throughput fees incurred by BSI shipping product through the port of big creek versus actual costs incurred by BSI at the port of Belize City.
O'Brien's analysis will be delivered to the parties in three months and if he finds that the throughput fee and terminal handling charges are justified port charges, then the remains unamended.
But if he finds that the throughput fee and terminal handling charges are NOT justified port charges, then key clauses for ocean freight and stevedoring will be amended.
