Business

Business environment tough: FCEF

May 25, 2022 6:10 am

The Textile, Clothing and Footwear Council has no option but to absorb rising freight costs says President, Michael Towler.

Towler says shipping costs have gone up by 150 percent in the last twelve months.

He adds over a year ago, a 20 foot container used to cost around $18,000, but now it’s gone up to $35,000.

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“We are now starting to see some of the freight rate cost going up to around 300 percent and every week, every month, the shipping lines increase rates or they put up some sort of surcharge relating to port congestion or bunker adjustment factors which is a fuel surcharge so all of those things mostly they have to be absorbed, we can’t pass them on.”

Fiji Commerce and Employers Federation Chief Executive, Kameli Batiweti says the business environment is tough given the global situation, and it is beyond everyone’s control.

“The things that are happening around the world is not helping our economy, it’s not helping with ease of doing business and the cost of doing business. Things are quite tough.”

Batiweti adds due to the increase in freight costs, prices of imported goods have also gone up.