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Island Business Owners Struggle with Rising Cargo Costs

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Losalini Leba, a small business owner in Suva, obtains her supplies from her home island of Lakeba in the Lau Group. Her inventory consists of coconuts and vau (native hibiscus fiber), which she sells either in their natural state or as profitable byproducts.

In a conversation with The Fiji Times, Ms. Leba expressed concerns about the significant profits being made by local inter-island ferry Goundar Shipping due to inconsistent cargo charges.

“We used to pay $5 for a sack of coconuts shipped by boat, but now it’s $7 per sack,” Ms. Leba stated. “For a 25-kilogram sack that’s only half-filled with vau, we are charged $20, and for a fully packed sack, it’s $40. It appears that the shipping company is generating more revenue from cargo charges than from passenger fares, leading us to suspect that the increase in cargo fees is related to this.”

She noted the costs of transporting various items, saying, “We pay $25 to transport a 2kg bucket of frozen food from the island to Suva, while root crops can cost between $7 and $10 per sack. The only item exempt from charge is a single suitcase filled with clothes.”

Ms. Leba pointed out the confusion surrounding the pricing of vau compared to coconuts, despite coconuts being heavier. She criticized the lack of a standard weighing system that could help define cargo charges more clearly.

“I believe some locals are advising the franchise owner by claiming we often earn substantial amounts from a sack of vau compared to coconuts. Even with a half-sack of vau, we can make $500 to $600 from making sisi (garlands) out of it,” she explained. “This is likely why they charge more, despite a sack of vau weighing much less than coconuts.”

Despite voicing their grievances to the shipping company, Ms. Leba indicated that no changes had been made. She revealed that shipping expenses for a single trip can reach between $200 and $300, excluding the transport fare from the Suva wharf to her home where she runs her business.

She added that Lakeba has a dedicated boat operation due to the high volume of cargo transported to Suva, and emphasized that increasing the government’s shipping fleet could alleviate some issues. “We have taken our complaints to the authorities several times, but it seems there’s little we can do, as this is the only inter-island shipping service available,” she said. “We sincerely hope the government will assist us, as these cargoes are essential for our livelihoods. The fare issues are minor compared to the cargo costs that concern most of us.”

Joeli Kete, another frequent traveler to Lakeba, confirmed that high cargo charges have been burdensome. “Sometimes we can’t bring our bedding into the cabin due to the extra costs, so we have to pack it in bags to save money,” he shared. “Traveling to Lau requires careful planning, considering the boat fare, cargo fees, and additional transport costs from the boat to our village.”

He detailed specific charges, stating, “A carton may cost $10, a sack of fish could range from $30 to $40 depending on its fullness, and a sack of coconuts is $7. Additionally, we need to eat during the journey, and food on board is pricy.”

Kete recounted a recent trip on the ‘Lomaiviti Princess 6’, highlighting the duration and limitations of service. “We left Lakeba at 7 am, sailed for a whole day and night, arriving in Suva the next day at noon. This route didn’t stop at other islands, unlike the ‘Lomaiviti Princess 12’, which reached Suva ahead of us.”

In response, George Goundar, owner of Goundar Shipping, explained that there has been no fare review for inter-island ferries in 13 years, leading to the current cargo charges. “We’ve been requesting the FCCC (Fiji Competition and Consumer Commission) for a fare review for over a decade, but nothing has changed,” he stated. “While bus and taxi fares have increased, our shipping rates have remained stagnant despite rising fuel costs.”

Mr. Goundar noted that operating larger vessels has also driven up operational costs. “Our freight rates were established when smaller fishing vessels were in use. Now we have proper vessels operating in our waters, and costs have changed dramatically.”

Questions directed to the FCCC last Friday were not answered by the time of publication.

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