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With retailers and builders among the first to raise concerns about the looming hike in freight prices facing the islands, Guernsey's Economic Development President is assuring them that they are being heard "loud and clear".
Condor finally broke its five-day silence over plans to increase freight tariffs by almost 19% – in a move likely to hit businesses and customers – saying on Tuesday evening that they have "no choice" but to do so.
In a statement, the ferry company claimed that they "have been subjected to significantly above-inflation rises in some port costs and other fees, which in some cases are between 18% to 35%".
In response, Deputy Neil Inder has said:
“We hear loud and clear the concerns of businesses working in the supply chain about increasing costs and we’re engaging with Condor on this matter, with the aim of ensuring that any increases that are implemented are essential, affordable and proportionate.”
He's not the only one issuing a brief statement on the matter while waiting for further details to emerge.
The Guernsey Building Trades Employers Association said that it is speaking with members and will likely say something shortly, while the Guernsey Retail Group is also canvassing its members for their thoughts.
Korinne Le Page said the GRG is also trying to establish more information on the proposed freight charges increases proposed.
"We are not in a position to comment at the moment as we are making enquiries to establish the facts," she said.
"Naturally, Guernsey retailers are concerned and we will support them in any way we can."
Pictured: Condor Ferries CEO, John Napton.
News that Condor had proposed a freight tariff rise of 18.76% emerged last week.
Condor were contacted by Express for comment on Friday morning, but only issued a response on Tuesday afternoon.
Condor Ferries CEO, John Napton said: “We have absorbed cost increases from suppliers over the past three years to minimise the impact on our own customers, but latterly have been subjected to significantly above-inflation rises in some port costs and other fees, which in some cases are between 18% to 35%, along with minimum and living wage increases.
“As with many other businesses, our financial situation was impacted during the pandemic period and during that time we continued to maintain the supply of essential food and medicines to the islands."
He continued: “We are notifying logistics clients of an increase in charges, which is obviously regrettable but having kept our charges low for the past three years, the rising costs mean we now have no choice but to pass these on.
“The adjustment in our freight tariff is one part of the overall costs of the distribution network from the UK and, in real terms, represents a much smaller uplift in end-consumer retail prices as a result of Condor’s shipping rates being passed through the supply chain.”
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