Wednesday, 23 March 2011 8:48 AM

Fares and Freights Set to Rise

Sea fares and freight charges are set to rise in the coming weeks as fuel prices continue to spiral upwards.

A person familiar with the shipping industry says that the spike in fuel prices has forced boat owners to re-look at their shipping fares and freight charges.

"It will happen in the coming weeks, there are indications that the price of fuel will continue to rise, so boat owners have very little choice."

The Marine Division says that they have very little control over how boat owners choose to set their fares and freight charges.

"We feel for the traveling public, but there is very little we can do, it is an open market situation where boat owners are free to set prices," said a senior officer within the Division.

"I think it is important to understand that these boat owners are private businesses and the industry has a lot of other associated costs."

The senior officer says that with minimal subsidy support these boat owners have very little choice but to pass on such external shocks to consumers.