There are indications that exorbitant transport costs will slowly decrease later this year.
Freight costs have been at their highest level in recent times since the start of the COVID pandemic and subsequently the Russian-Ukrainian crisis.
Commerce Minister Faiyaz Koya said consumer prices rose globally due to disruptions in shipping and the supply chain.
Koya says businesses will have to bear increased transport costs and supply chain issues for some time, as this is not unique to Fiji.
“I think the costs are starting to come down.” Supply chain issues have driven prices up. We will have to face it like anything else in the world. Geopolitical issues in Russia and Ukraine are also a contributing factor to rising costs in terms of moving goods to and from the rest of the world to Fiji.
According to the Suva Retailers Association, transportation costs are a global issue and businesses are trying to adapt to the environment as there is no other option available.
President Jitesh Patel says they hope it’s not a long-term problem hoping things will be better in the next six to eight months.
According to the World Trade Organization, the war in Ukraine has impacted the global economy at a critical time and its effects will be felt around the world, especially in low-income countries.
He adds that governments and multilateral organizations must work together to facilitate trade at a time of strong inflationary pressures on essential supplies and growing pressures on supply chains.