Approximately 20,000 travellers will be affected after Goundar Shipping Limited halted its franchise and private runs to the Lau Group and Rotuma yesterday.

Managing director George Goundar said the continuous increase of fuel price had affected the company.

“We had a loss of about $4million last year, but we managed it because the fuel price was low. But with the increased fuel price, we can’t do much,” Mr Goundar said.

“The franchise the Government is giving us is $11,000 for Yasayasa, $18,000 for Northern Lau and $25,000 for Rotuma.

“With the increase of fuel price what can we do with that much and we are expecting another increase next month.

“I can’t run on a loss; I would rather berth my vessels. I started selling my vessels because I did not see a way out.

“Until the fuel price comes down to a reasonable price we will then start operating.”

Mr Goundar said his franchise contract was due for renewal next month.