4 Dec 2008

Niue monthly shipping service expected to resume

2:45 pm on 4 December 2008

The head of Niue's Chamber of Commerce says the island's business community is relieved the government has decided to resume a monthly shipping service.

Sonya Talagi says the December shipment is due tomorrow.

The shipping company, Reef Shipping, says the November sailing was dropped because of the combination of lack of volume and the other commitments of Reef's ships.

Ms Talagi says while she welcomes yesterday's announcement, during a sitting of the Niue Assembly, of the resumption of the monthly sailings, business people would have been happier with lower freight costs.

"The freight rates to Niue have I think have increased quite substantially in the last year so hopefully it depends on what the supplies can do and we'll see what happens in future."

Sonya Talagi says the cessation of monthly shipping created much uncertainty among importers.

But the managing director of the shipping company says trying to avoid subjecting importers to price hikes has been part of the negotiation process.