Island Discontent: Shipping Costs Squeeze Local Businesses

Losalini Leba, a small business owner based in Suva, obtains her supplies from her home island of Lakeba in the Lau Group. Her inventory consists of coconuts and vau, a native hibiscus fiber, which she sells either in their raw form or as processed byproducts for higher profits.

In an interview, Leba expressed concern about the significant profits that the local inter-island ferry, Goundar Shipping, is reaping from fluctuating cargo charges. “For my business, I sell coconuts and vau. Both items are transported from my village by boat. We previously paid $5 for a sack of coconuts, but now it’s $7,” she noted.

Leba further shared that cargo charges have become a burden, with costs reaching $20 for a 25-kilogram sack that is only half-filled with vau, and $40 for a fully-filled sack. She suspects that the shipping company is making more from cargo fees than from passenger fares and attributes the rising charges to this trend.

She detailed other transport costs, mentioning a $25 fee to bring a 2kg bucket of frozen food from the island to Suva, while root crops cost between $7 and $10 per sack. The only exception is one suitcase of clothing, which can be taken onboard without charge.

Passengers often question why transporting vau is more expensive than coconuts, despite the latter’s increased weight. Leba highlighted a lack of standardized weighing protocols, which could help facilitate fairer cargo pricing. She believes that some locals influence the shipping company’s pricing strategies, as vau can yield higher profits than coconuts.

Leba frequently spends between $200 and $300 per cargo trip, excluding the additional $30 to $40 for transporting goods from the Suva wharf to her business location. She emphasized that Lakeba operates its own ferry service due to the high amount of cargo transported to Suva.

To alleviate these issues, she suggested that the government increase shipping services and fleet size. “We’ve raised our concerns with the authorities multiple times, but this is the only inter-island shipping service available for us,” she said, expressing hope for government intervention, given the crucial role of cargo transport in their livelihoods.

Joeli Kete, a frequent passenger between Lakeba and Suva, corroborated Leba’s claims regarding the escalating cargo charges, explaining that these fees often restrict the items they can transport, leading passengers to find clever ways to circumvent costs. He shared his travel experiences, noting the high fees for transporting everyday items.

In response to the complaints, George Goundar, the owner of Goundar Shipping, stated that there has been no fare review for 13 years, contributing to the current cargo charges. He indicated that inflation in fuel and operational costs has not been reflected in freight rates, despite increases in bus, taxi, and airline fares.

Questions posed to the Fiji Competition and Consumer Commission regarding fare changes remained unanswered at the time of publication.

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