Shipping Companies Warned Against Breaching Price Control Order

Inter-island shipping companies are reminded to adhere to the Price Control Order and relevant policies in place when charging consumers freight cost for the transportation of goods.

The current price control order for inter-island shipping freight charges allows vessel operators to charge prices for general freight based on either the volume or weight.

For equitable and dynamic pricing system that is just to both consumers and traders, the price control order recommends that a defined list of items and measuring method need to be developed by the shipping companies and enforced to ensure consistency and fairness.

This however, is not being implemented by shipping companies.

The Council is in receipt of several complaints where freight charges for transporting goods via inter-island shipping services have increased all of a sudden.

Investigations by the Council revealed that the price control order stipulated by the competition regulator was not being followed.

The vessel staff had determined freight costs just by looking at the item instead of weighing it.

Additionally, the receipts being issued by vessel operators were not itemised and did not indicate the size, type or any other information about the goods being transported.

“Shipping companies are overcharging consumers by imposing exorbitant freight charges as the measure units of either weight or volume is not being used to determine charges,” said Consumer Council chief executive officer Seema Shandil.

“We are calling on shipping companies to immediately cease this practice and develop internal policies for freight cost in line with the Price Control Order on shipping charges and freight cost.”

Shipping service providers are also reminded to issue proper receipts to consumers which are itemised and includes relevant details such as size, type and weight or volume about the package being transported

The Council urges consumers to verify freight charges before payment and those with concerns are urged to contact the Council on toll free number 155 or email complaints@consumersfiji.org.