Rising Cargo Charges Leave Small Business Owners in Financial Strain

Losalini Leba, a small business owner in Suva, obtains her supplies from her home island of Lakeba in the Lau Group. She sells coconuts and vau, which is native hibiscus fiber, in both their natural forms and as byproducts for additional profit.

In a conversation with The Fiji Times, Ms. Leba expressed concern over the significant profits local inter-island ferry service Goundar Shipping has been making from inconsistent cargo charges. She noted that the costs for transporting coconuts have increased, with the fee rising from $5 to $7 for a sack. For vau, she mentioned that a half-filled 25-kilogram sack costs $20, while a fully packed sack costs $40.

Ms. Leba observed that the shipping company appears to be earning more from cargo fees than from passenger fares, leading to suspicions about the reason behind the hike in charges. She explained that transporting a 2kg bucket of frozen food costs $25 from the island to Suva, while root crops range from $7 to $10 per sack.

Passengers have also questioned why a sack of vau, which is lighter than coconuts, costs more. Ms. Leba highlighted that there is no standardized weighing system for passengers to follow when packing their goods, and she believes this contributes to the confusion over pricing. She suspects that local advice to the company owner may be influencing the higher charges based on the perceived profitability of vau.

Despite raising their concerns with the ferry service repeatedly, Ms. Leba mentioned that no changes have been made. She estimated spending between $200 and $300 per cargo trip, not including the additional $30 to $40 fare for transport from the Suva wharf to her business location.

Lakeba has its own boat service due to the significant volume of cargo that travels from the island to Suva. Ms. Leba emphasized that increasing the number of government shipping services could help alleviate these issues.

Many travelers like Joeli Kete, who frequently journeys to Lakeba, confirmed that the rising cargo charges have severely impacted them. Kete noted instances where they had to sacrifice comfort by packing bedding as carry-on luggage to save on costs, and how planning for trips requires careful financial consideration due to multiple fees.

In response to these concerns, George Goundar, owner of Goundar Shipping Limited, indicated that there has been no fare review for 13 years, contributing to the current cargo charges. He pointed out that costs for fuel and other services have surged, yet ferry fares have remained unchanged. Goundar expressed frustration at the lack of action from the Fiji Competition and Consumer Commission regarding fare adjustments.

As of the time of reporting, officials from the FCCC had not responded to inquiries about this matter.

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