Community reacts to shipping rate hike

Effective Feb. 28, the shipping lines raised their rates from 21.75 percent to 26.5 percent for Hawaii while Micronesia had to contend with an increase from 23.25 percent to 28 percent.

This is expected to affect the prices of goods and services in the Northern Marianas.

Although majority of the stores have yet to raise their prices, consumers and members of the community are already bracing for it.

“The increase in shipping rates will unfortunately affect every consumer — local and tourist — in our community.  The reality is, however, that world fuel prices have risen substantially over the past few months.  We see the effects of this most dramatically at the gas pump and in our utility bills.

Shipping companies are not exempt from these rising costs,” said Kyle Calabrese, outgoing executive director of the Saipan Chamber of Commerce.

Local resident Ed Propst said, “It is what it is. We can complain all we want, but we don’t control shipping rates. Fuel costs continue to escalate. The CNMI has nothing to export, so those ships that come in leave empty-handed. Perhaps if we want to cut shipping rates, it would be a good idea for the CNMI to seriously look at products we can export.”

A local shopper who requested anonymity, expressed her surprise at a store’s increased prices.

She said, “I was surprised. I didn’t expect this increase. For sure times will be tougher for us who make a modest living.”

Baba Nurung, a cashier at New Happy Market, said they were also surprised to find out that prices had  increased when they obtained new supplies from their wholesaler. “We couldn’t do anything.  So far, I haven’t heard complaints yet from the shoppers,” she added.

Raffy, Nurung’s manager at New Happy Market, said if the shipping rates are high, then retailers like him are going to suffer. He said, “Prices are indeed going to be higher.”

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