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Rising Costs on Islands: Small Business Owners Cry for Help

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Losalini Leba, a small business owner from Suva, gathers her supplies from her island home on Lakeba in the Lau Group. Her products include coconuts and vau, a native hibiscus fiber, which she sells either as-is or in various byproducts for increased profits.

In a recent conversation, Leba expressed concern over the rising cargo charges imposed by local inter-island ferry Goundar Shipping, highlighting the financial strain on her business. She noted, “I sell coconuts and vau. These items are transported from my village by boat. Previously, the cost was $5 for a sack of coconuts, but it has increased to $7 now.”

Furthermore, she mentioned the costs of transporting vau: “We pay $20 for a 25-kilogram sack that’s half-filled with vau, and $40 for a fully packed sack. It feels like the shipping company profits more from cargo charges than from passenger fares, which may explain the hike in our shipping costs.”

She pointed out the specific costs associated with transporting other items as well, including $25 for a 2kg bucket of frozen food and $7 to $10 for a sack of root crops, revealing that the only permitted item onboard without charge is a suitcase with clothing.

Many passengers, according to Leba, question why the cost of a sack of vau is higher than that of a heavier sack of coconuts. She noted the absence of proper weight measurements or transparent standards for cargo, which could assist in justifying the charges.

Leba believes that local insights regarding the high profitability of vau might contribute to the increased fees, stating, “For a half-sack of vau costing $20, we can still earn $500-$600 from selling the garlands we make.”

Despite voicing their grievances to the shipping company, Leba states that no changes have been made thus far. She estimates that the cost of a single cargo trip could range from $200 to $300, excluding transport costs between the Suva wharf and her business location.

Unlike other islands in the Lau Group, Lakeba operates its own boat service due to the significant volume of cargo shipped to Suva. Leba suggested that increasing the number of Government shipping routes and fleets might alleviate some of the issues they’ve been facing.

“Despite repeatedly taking our concerns to the authorities, it feels like we’re out of options since Goundar Shipping is the sole inter-island company servicing these routes,” she lamented. “We hope the government can assist us because these shipping costs are critical for our livelihoods. It’s not the passenger fares, but the cargo charges that worry most of us.”

Joeli Kete, another frequent traveler to Lakeba, echoed Leba’s concerns, noting that the high cargo rates often restrict what items they can bring on board. “To save costs, we’ve sometimes had to fold bedding into bags to pass it off as carry-on luggage,” he said.

Kete highlighted the cumulative financial burden of traveling to Lau, which includes boat fares, cargo fees, and additional transport costs from the boat to their villages. He detailed various shipping costs, such as $10 for a carton and $30-$40 for a sack of fish, while noting that food onboard the ferry is quite expensive.

Describing a recent trip, Kete recounted, “I returned from Lakeba about three weeks ago on the ‘Lomaiviti Princess 6’. We left at 7 am and didn’t reach Suva until 12 pm the next day, as this specific ship operates mainly on the Lakeba-Suva route and does not stop at other islands.”

In response, Goundar Shipping owner George Goundar explained that the current cargo charges stem from a lack of fare reviews over the last 13 years, despite rising operational costs in fuel and labor. “We have urged the FCCC for a fare review, but nothing has changed,” he stated, emphasizing that prices for bus and airline fares have increased significantly, unlike shipping charges.

He remarked, “For over a decade, our rates have remained the same while costs for everything else have gone up significantly. Operating larger ships has increased operational expenses, which we cannot ignore.”

As of this report, inquiries sent to the FCCC regarding the fare review remained unanswered.

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