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Condor was said to be locked in negotiations with industry representatives over the weekend after it emerged that the ferry service company has proposed a price increase of almost 19% on imported goods next year.
Retailers in Jersey, who told Express of the proposals, have described the "brutal" impact the rise would have on the islands' businesses, which may be forced to pass costs onto customers.
Condor's proposed freight increase was revealed in an email sent to Ferryspeed and Profreight customers at the end of last week.
Condor were contacted by Express for comment on Friday morning, but were yet to issue any formal response at the time of writing on Monday evening.
In the email, the sister companies outlined plans to increase their pricing from January by 8.76% based on September RPI indices of UK, Jersey and Guernsey.
However, they revealed that Condor is intending to increase prices by inflation plus 10%, resulting in a total increase of 18.76% from 1 January 2024.
"As you will appreciate, this level of price rise is unprecedented and, if implemented, will have an impact on our operating costs that will not be covered by the 8.76% inflation linked increase referenced above," said Ferryspeed and Profreight.
The companies therefore explained that they "reserve the right to further raise prices beyond the 8.76% noted above depending upon the outcome of our discussions with Condor".
They added: "We have not, as yet, accepted Condor’s proposal and, instead, have raised the impact such an extraordinary increase would have on our customers and have asked them to explain the rationale behind their proposal."
Murray Norton, CEO of Jersey's Chamber of Commerce, said: “The proposed rises in the cost of freight are terrible news for businesses in the island and will impact prices to customers."
Pictured: Murray Norton, CEO of Jersey's Chamber of Commerce, described the proposed increases as "terrible news for businesses in the island".
"Chamber has been in discussions with Condor and Government on Friday and throughout the weekend to gain a greater understanding of the causes. These Condor price rises are high and do unfortunately reflect cost increases in the jurisdictions they operate," he continued.
"These do include Ports fee increases above inflation, large minimum wage increases and the rises in the cost of stevedore services. The cumulative effect of these rises and others has all combined on one essential service.
He added: "Clearly, the restraint Chamber has consistently called for, on areas within the control of Government, does have an effect on the cost of running a business.
"The Governments of both islands should be mindful of this when they add to business costs. We are seeing many sectors under huge pressure right now and this will certainly not help.”
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