A LOGISTICS company has told customers it will keep pushing for a reduction in Condor’s recently-increased freight charges – which have risen by almost 19% – after it had “no alternative” but to pass on some of the costs.
Ferryspeed and its sister company Profreight will be raising their rates by a further 4% at the start of next month – having already outlined plans to increase their pricing from this month by 8.76% based on September RPI indices of UK, Jersey and Guernsey – in the wake of Condor’s “unprecedented” price hike.
News that the ferry service was implementing a freight cost rise of 18.76% emerged at the end of last year, with its chief executive, John Napton, revealing the business had also been absorbing price increases from suppliers.
In an email to customers seen by the JEP, Profreight general manager Trevor Lee said that, despite discussions with Condor, the new charges had come into effect on 1 January.
He added: “We have no alternative other than to reluctantly accept this extraordinary above-inflation price increase and we have been analysing in detail the impact of this.”
He described the increase as “unprecedented” and added that the logistics company was “concerned as to what effect this will have on the economy of the islands”.
“With this in mind, we are absorbing a significant proportion of the increase but, with regret, we must pass on some of this additional cost and raise our own rates by a further 4% over and above the previously notified 8.76%.
“We continue to work with Condor, the business community and government to seek a reduction in Condor’s charges and, should this transpire, then we will make an appropriate downward adjustment to our own rates,” the email continued.
The JEP asked Condor for comment.
Mr Napton has previously said the ferry service had “no choice” but to pass on rising costs, having been “subjected to significantly above-inflation rises in some port costs and other fees”.
His comments came after Ports of Jersey announced an 11.1% rise in fees at the Harbour and the Airport, which also took effect at the start of the year.
