Goundar Shipping Services is set to make substantial changes in light of the difficult circumstances currently impacting the shipping industry in Fiji, with plans to sell three of its vessels this year. Company director George Goundar has voiced his concerns regarding the declining prospects for inter-island shipping, indicating a troubling outlook for maritime services in the region.
Goundar highlighted that the industry is facing a severe downturn, driven by escalating operational costs and a significant drop in business activity. He noted that demand for shipping services has decreased by roughly 30% over the past four years, further complicating the situation for shipping operators. “We have hard times ahead of us,” he commented, underlining the adverse effects this downturn has on residents of outer islands who depend on maritime transport.
The director reiterated that while some in the public attribute high costs to Goundar Shipping, the reality is that rising operational expenses—including fuel and labor—have soared, leading many vessels to operate below capacity. “Yes, it’s expensive. Running ships are expensive,” Goundar stated candidly.
In light of these challenges, he emphasized the need for government intervention, urging authorities to closely scrutinize the shipping sector and take steps to improve its operational viability and sustainability. As of now, Goundar Shipping operates a fleet of 14 vessels, with plans to sell LP 1, LP 3, and its tanker in the coming year.
Despite the significant challenges, there exists a cautious optimism that with appropriate measures and support from the government, the difficulties faced by the shipping sector can be addressed, ensuring continued maritime services to the outer islands. This forward-thinking approach could foster resiliency in the industry and help sustain critical connections for Fiji’s island communities.