Consumers to pay more as air and sea freight costs have increased

Consumers are now forking out more to pay for imported goods as Airfreight and Seafreight costs have increased.

One of the main importer-exporter agency in Niue confirms Air New Zealand charges have increased by $2.50 kg from April 12th this year and rates to Niue is currently $10.50 kg from the previous $8.00 kg.

If the actual total freight weight is less than the forward booking weight total, Air NZ charge will be at the booking weight. The importer agency says it is always best to have more than less to avoid being charge for unused weight.

Matson sea freight general rates increased by 2% and 6.06% Bunker Adjustment Factor (BAF) from January 2020.

The BAF is related to new International Maritime Organization regulations which required vessels to use Low Sulphur fuel from January.

The downside in all the increases is the impact to consumers, businesses cannot absorb the increased charges in the current environment and therefore consumers become the final payer.

Swanson Manager Amanda Pita confirmed there have been increase in prices for the supermarket items.

“Some of these items the last price change was 2016..the Covid-19 has affected supply chains from NZ also.. Most products sold in the supermarket are supplied directly from the factory like Fonterra, Gilmour for e.g. So if the main supplier cannot supply we look for an alternative supplier like countdown or Gilmour’s to supply something we could order directly from the supplier, so that means we pay extra and this extra $1 or $2 will make a lot of difference once the product lands here.” Said Pita

Another retailer at the Commercial center says their priority is their supply to restaurants but they also cater for their needs specifically and are mindful of loyal customers.

“We have in fact have had to order airfreight goods for the restaurants more than usual this year. I think the increase in airfreight is due to COVID19 as previously there was a standard cost. Now if you bring in less than 100kgs it is more expensive but if you order over 100kgs n more it is expected to decrease.

Frozen airfreight is about $5kg.from $3.69kg and fresh produce just under $5. You also have to consider the costs of documentation, MAF fees, cartage as well. It all adds up when it gets here.

Our fresh produce goes fast due to the small number of our order. Right now, we are just ordering enough to tide us through we do not want to be caught out. If customers are buying but complaining they need to shop around. “