Shipping company making loss due to bad economic conditions

LOSS of sales in the New Guinea Islands in the past three years has affected the operation of the mvChebu, according to the Chebu Shipping Company Ltd.
Managing director Fabian Chow said that last year operations were at a loss because of poor sales conditions due to lack of disposable income in the New Guinea Islands, high maintenance bills and excessive regulations driving up cost of operations.
Chow in a statement said the company was also affected by the tough economic conditions hitting the New Guinea Islands shipping industry.
“Several companies like Agmark Shipping are also reputed to have run at a loss during 2019 while providing much needed shipping services,” he said.
“The ships of Agmark are especially needed to fill the vacuum left by East New Britain Port Services shipping arm when much of its services ceased in December 2018.
“Copra and cocoa farmers are more dependent than ever on supply of shipping services to move produce.”
Chow said New Ireland had provided a reasonable solution to the problem by subsidies to remote areas.
“New Ireland provides a public-private model in how to access uneconomic shipping services by minor subsidies with private companies,” he said. “Unfortunately many areas of the New Guinea Islands have become deserted of reliable shipping services due to roller-coaster conditions of seasonal trading.”
Chow further added that it appears that the only short and medium-term solution to these shortage of shipping services is public-private arrangements for freight subsidies.