Freight costs surge, prices set to rise

Freight costs are rising sharply and are expected to push up the price of everyday goods across Fiji in the coming weeks, the Fijian Competition and Consumer Commission (FCCC) says.

In a public advisory, the FCCC said global shipping disruptions were driving up costs that would soon reach retail shelves, with consumers and businesses urged to prepare.

The commission said freight rates were increasing because of escalating geopolitical tensions affecting key global shipping routes, particularly through the Strait of Hormuz and the Red Sea. Vessels that would normally transit the Suez Canal are being rerouted around the Cape of Good Hope, adding up to 14 days to transit times and tightening global shipping capacity.

War-risk insurance premiums for vessels operating in contested waters have also increased, with added costs expected to filter through supply chains to end-point ports, including Suva and Lautoka.

The Containerised Freight Index has risen by more than 35 per cent compared with the same period last year.

Given that about 80 per cent of Fiji’s consumer goods — including fuel, food and household essentials — are imported, the FCCC warned the impact could be more pronounced locally than in many other countries.

“Our message to the public is to plan ahead and shop wisely where possible. We are closely monitoring the markets and will release updates on specific commodities in the coming days,” said Senikavika L. Jiuta, Chief Executive Officer of the FCCC.

The commission said fuel and haulage would be among the first sectors affected, as increases in freight costs are typically reflected quickly. Construction materials such as steel and cement are also expected to rise.

Retail and grocery prices are likely to increase with some delay as existing stock is depleted and replaced with goods imported at higher freight costs.

Government has activated Phase One of the National Fuel Emergency Action Plan and is monitoring the situation through the Fuel Advisory Committee and the National Disaster Management Office.

The FCCC warned businesses that any price increases must be fair, transparent and supported by verifiable cost data, including freight invoices and supplier correspondence.

“We will not tolerate opportunistic pricing. Any trader found exploiting freight cost increases as a pretext for unjustified price hikes will face strict enforcement action,” Ms Jiuta said.

Consumers are encouraged to report unusual or unexplained price increases to the FCCC.