21-05-2025
Jersey businesses frustrated by higher than expected freight cost rises as some warn of price hikes
A major Jersey restaurant chain says it may have to charge customers more due to an unexpected rise in the cost of freight.
Flo Aranda, Randalls' sales manager, explains that while the company is reluctant to hike prices on its menus, it may be forced to after being told by Ferryspeed to expect higher bills on imported goods into the island from later this year.
Mr Aranda says it is not yet clear how much the freight costs will increase but that a rise of 10% or more would likely result in higher prices for customers.
He adds: "What we want to achieve is keeping prices the same because I know that going out is expensive at the moment and we don't want to put any more pressure on people.
"Just when you think you're out of the woods, something else comes up and something else comes up and something else comes up.
"It feels like it's completely impossible to win."
The news comes after Danish firm DFDS replaced Condor as the island's ferry operator at the end of March.
DFDS charges a flat rate for freight compared to Condor's previous dynamic pricing model, with Jersey's Sustainable Economic Development Minister telling a scrutiny panel shortly before the takeover that there would be "no significant" rise in unit prices for retailers or consumers.
In that hearing, Deputy Kirsten Morel and economy chief Richard Corrigan said they were estimating that consumers would pay 0.4% more for goods with the new flat rate.
However, several retailers have confirmed to ITV News that Ferryspeed - the main transporters of freight for Jersey businesses - has told them to expect significant price rises.
Pastella Ceramics expect a 7% increase, with another wholesaler told to brace for a double digit rise in freight costs.
Ferryspeed declined ITV News's request for an interview but in a statement, the company said: "The global logistics industry is volume-based with low margins.
"The greater the volumes of freight handled, the greater the opportunities to create efficiencies and pass the benefits of volume-based pricing on to the customer.
"Brittany Ferries have also updated their Guernsey rates since the advent of the new single island contract. This means that our ferry operating costs have risen.
"We have worked closely with our customers to try to mitigate and absorb these increases, where possible.
"However, combined with above inflation increases on harbour dues and the increased cost of operations with two ferry providers, price adjustments are unfortunately unavoidable.
"We have been paying the new rates since the ferry services launched and have protected our customers from the necessary adjustments while the impact was fully understood.
"We recognise the importance of our role in ensuring that Channel Islands' economies grow by allowing businesses to import and export and enabling efficient supply chains."
Responding to criticism from some businesses, Deputy Morel said: "I'm not here to be scapegoated. What I have done is brought transparency to ferry pricing. We now know how much it costs to bring goods to Jersey.
"The intermediaries, the companies that take those goods off the ferry and distribute it around the island, there's no control on those prices.
"That's very separate from the cost of the ferry and so I would like to have better sight of that and maybe we need to look at that."
