CONSUMERS and businesses are advised to brace for an expected rise in freight rates that is expected to place upward pressure on the prices of everyday goods across Fiji in the weeks and months ahead.
With surging global shipping costs attributed to escalating geopolitical tensions, particularly disruptions to key trade routes through the Strait of Hormuz and the Red Sea, it has been established that vessels that would normally transit the Suez Canal were being rerouted around the Cape of Good Hope, adding up to 14 days to transit times and tightening available global shipping capacity.
According to the Fijian Competition and Consumer Commission (FCCC), war-risk insurance premiums for vessels in contested waters had also spiked, with those costs passed down the supply chain to end-of-line ports, including Suva and Lautoka.
FCCC chief executive officer Senikavika Jiuta said the Containerised Freight Index had increased by more than 35 per cent compared to the same period last year.
Given that approximately 80 per cent of consumer goods in Fiji — including food, fuel, and household essentials — were imported, she said those pressures were likely to have a more pronounced impact on Fiji than on 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,” Mr Jiuta said in a statement issued yesterday afternoon.
She said the sectors most likely to experience immediate impact were fuel and haulage, where increases in freight costs were typically reflected without delay. Construction materials such as steel and cement were also expected to rise.
Overall, retail and grocery prices are likely to follow with some delay, as initial stocks deplete, goods imported at higher freight costs are expected to begin reaching retail shelves, she added.
Ms Jiuta said the Government had already activated Phase One of the National Fuel Emergency Action Plan and continued to closely monitor the evolving situation through the Fuel Advisory Committee and the National Disaster Management Office.
“The FCCC reminds businesses that any price increases must be fair, transparent, and supported by verifiable cost data.
“Traders are required to maintain clear records — including freight invoices, supplier correspondence, and landed cost calculations — to justify any price changes.
“The Commission will be undertaking compliance monitoring and enforcement activities across key sectors in the coming weeks.
“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.”
