Neptune Pacific Line has rejected claims made by the Nauru government over unfair freight costs.
Neptune Pacific Line managing director Rolf Rasmussen told Sun Shipping that as a Central Pacific Shipping Commission (CPSC) state, Nauru (along with Tuvalu, Tarawa and Majuro) are well aware that prior to qualifying for and being granted an Entry Assurance Certificate (EAC), the CPSC first approves each carrier’s service levels, shipping capability for the small island states, shipping schedules and freight rate charges.
“For more than 12 years, Neptune Pacific Line has proudly and responsibly conducted shipping operations for the Republic of Nauru, operating in the trade by way of a five-year license issued by the CPSC.
“This license, formerly known as an (EAC, sets the maximum freight rates that Neptune is permitted to charge for cargo carried between Fiji and Nauru.
“Neptune rejects the Nauru government’s allegations of price gouging, as our freight rates are determined in accordance to our CPSC license, and there has been no change whatsoever in Neptune’s rates since this license was issued on 8th November 2013,” Mr Rasmussen said.
Last Wednesday, the Republic of Nauru stated that since the recent withdrawal of Matson as a shipping supplier to Nauru, Neptune Pacific being the sole transporter of freight from Fiji to the island took advantage of the monopoly.
Maritime Affairs Minister Valdon Dowiyogo had said that freight costs were out of control and this adversely affects prices for consumers.
“The Naruan Government has not been sitting idle on this matter and has made numerous complaints to the shipping company but sadly all correspondence so far has fallen on deaf ears,” Mr Dowiyogo said.
The island government said as a result, they are considering restarting its own shipping venture.