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Rising Cargo Costs: Small Biz Owners Sound Alarm

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

In a discussion with a local news outlet, she expressed concern over the substantial profits local inter-island ferry Goundar Shipping has been making due to inconsistent cargo charges imposed on its customers. Leba explained that transportation costs for her goods have risen significantly. For example, she now pays $7 for a sack of coconuts, which previously cost $5. Additionally, the transport charges for vau vary greatly, with a half-filled 25-kilogram sack costing $20 and a fully packed one costing $40.

Leba pointed out an anomaly in pricing: although coconuts are heavier, passengers often ask why a sack of vau is more expensive. She noted that there isn’t a standardized weighing method or pricing guidelines in place, which could assist both passengers and boat officials in understanding these costs. She suspects this discrepancy is influenced by advice from locals to the ferry company regarding the profitability of vau in comparison to coconuts.

Despite raising these concerns with Goundar Shipping, Leba stated that no action has been taken to address the complaints. She mentioned that the expenses for a single cargo trip can range from $200 to $300, excluding transportation costs from the Suva wharf to her business location.

Unlike other islands in the Lau Group, Lakeba has its own dedicated boat service due to the high volume of cargo shipped from there to Suva. Leba believes that increasing the number of government-operated vessels and services on other routes could help alleviate these challenges.

Another ferry user, Joeli Kete, corroborated Leba’s claims, noting that cargo charges have been a significant burden. He highlighted the additional costs incurred for bringing personal belongings on board, often forcing travelers to pack items as carry-on luggage to save money.

Kete itemized various charges he faces when traveling, including fees for transporting fish and coconuts, which further complicate the logistics of traveling to Lau. He also emphasized the high prices for food onboard, which adds to the overall travel expenses.

In response to the complaints, George Goundar, the owner of Goundar Shipping, mentioned that the inter-island ferry fares have not been reviewed in 13 years, leading to the current rate of cargo charges. He expressed frustration over the lack of action from the Fiji Competition and Consumer Commission (FCCC) regarding fare reviews, stating that while other transport costs have increased, shipping rates have remained static despite rising operational expenses driven by fuel price hikes.

Questions directed to the FCCC regarding the matter went unanswered as of the time of this report.

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