Losalini Leba, a small business operator in Suva, acquires her products from her native island of Lakeba in the Lau Group. Her inventory comprises coconuts and vau (native hibiscus fiber), which she sells either in their original state or as value-added products for greater profit.
In a conversation with The Fiji Times, Leba expressed concerns about Goundar Shipping, the local inter-island ferry service, which has been benefiting notably from fluctuating cargo fees levied on its clients.
“For my business, I sell coconuts and vau. Both items are transported from my village via boat. In the past, we paid $5 for a sack of coconuts, but now it costs $7 per sack,” said Ms. Leba. “We pay $20 for a half-filled 25-kilogram sack of vau and $40 for a fully packed one. It seems the shipping company is making more profit from cargo fees than from passenger fares, which we suspect is the reason behind the increased cargo charges.”
She noted that transporting a 2kg bucket of frozen food from the island to Suva costs $25, while root crops range from $7 to $10 per sack. “The only item that can be taken onboard without a charge is one suitcase of clothes.”
Leba further remarked that passengers are puzzled as to why a sack of vau is priced higher than a sack of coconuts, despite the latter being heavier. She pointed out that there is no accurate weighing system or standard established for passengers to follow when preparing their goods, which boat officials could use to calculate cargo fees.
“I believe some locals are advising the franchise owner that we often earn a significant amount from a sack of vau compared to coconuts. Even a half-sack of vau, which costs us $20 to transport from Lau, could yield $500-$600 from making sisi (garlands),” she added. “I think this is why they charge us more, even though a bag of vau weighs less than a third of a sack of coconut.”
Ms. Leba mentioned that her expenses for a single cargo trip can range from $200 to $300, excluding the $30-$40 fare to transport it from the Suva wharf to her business location. She explained that unlike other Lau islands, Lakeba has its own boat service due to the high volume of cargo transported to Suva.
She suggested that the government could address these issues by increasing the number of ships in its fleet and servicing additional routes. “We have submitted complaints to the authorities numerous times, but it feels as if there is little more we can do, as this is the only inter-island shipping company catering to these routes. We genuinely hope the government intervenes to assist us because these cargoes are essential for our livelihoods. The fares are not the primary concern; it is the cargo costs that are troubling most of us.”
Joeli Kete, another frequent traveler to Lakeba, corroborated that the cargo fees have created significant challenges. “At times, we cannot bring our bedding into the cabin due to rising costs, and we have had to package them as carry-on luggage to save money.”
Kete further shared the extensive preparation required when traveling to Lau, considering the boat fare, cargo fees, and additional charges for transporting goods from the boat to their village. “For a carton, we might get charged $10; a sack of fish could be $30-$40 depending on its fullness; a sack of coconut is $7. These are some of the fees we encounter. Moreover, food prices onboard are steep.”
He recounted a journey from Lakeba three weeks ago aboard the ‘Lomaiviti Princess 6,’ which left at 7 am and took a full day and night to reach Suva by noon the following day. This vessel did not make stops at other islands and primarily serviced the Suva-Lakeba route, while ‘Lomaiviti Princess 12’ had picked up passengers from multiple islands and arrived in Suva before them.
In response to the concerns raised, George Goundar, owner of Goundar Shipping, stated that there has been no fare review for inter-island ferries in 13 years, leading to the present cargo fees. “We have repeatedly requested the FCCC (Fiji Competition and Consumer Commission) to reevaluate our fares, but without any results. While bus fares, taxi rates, and domestic airline fares have all increased, shipping fares have remained unchanged,” Mr. Goundar indicated.
“For 13 years, our rates have stagnated, even as fuel prices have surged from around $1 to nearly $3,” he added. “You should ask the FCCC why shipping fares have not been adjusted in over a decade. While airline tickets have skyrocketed, our freight rates have stayed the same, even as our operational costs continue to rise due to the introduction of larger vessels.”
Questions directed to the FCCC regarding this matter went unanswered prior to the publication of this article.