Online sellers cancel deliveries

BY CARLI WILLIS

A Zenadth Kes business owner with a small store on Waiben says freight costs have impacted their business, causing prices to rise.

Kelly Beckley’s shop runs 24-hours a day with vending machines full of a mix of essential goods and snacks.

In March, Amazon cancelled shipments to the Torres Strait, a bulk-buying source that Kelly said offered free freight on some items and supplied about one third of the items she was selling at the time.

She said the loss, coupled with high freight costs, had forced her to pass the cost on to customers.

“I’m only a small buyer so my freight rate is not at a discount,” she said. “It’s just at a regular rate and then you’ve got all your other fees that are included in that as well.

“Some carriers charge more for heavier and bigger, bulkier items.”

In a statement to Torres News, Amazon said delivering to the remote Australian islands had been a challenge since its inception in Australia five years ago.

They said deliveries were stopped at five remote island post codes including Thursday Island, Norfolk Island, Christmas Island, Lorde Howe Island and West Island Cocos (Keeling).

“Due to increasing transportation costs and limited logistical options, after careful consideration we took the difficult decision to discontinue deliveries,” an Amazon spokesperson said.

Earlier this month catch. com informed shoppers OnePass customers, who had also taken advantage of a free delivery option, would no longer have access.

For paid monthly memberships, free delivery would end for orders placed after 2 September.

Ms Beckley said she also took advantage of this service which supplied another third of her business.

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She said in this case she would be able to absorb the cost, but with dwindling suppliers to the region and higher freight costs the future felt uncertain.

“I’m not making a massive living, it’s just enough to provide the service,” she said.

She said she’d like to see some competition, “so we have another option, whether it’s cheaper or not”.

Freight and Trade Alliance Australia - a representative body for the international supply chain sector - said while international freight costs were dropping, the dynamics in remote Northern Australia presented unique challenges.

Head of International Freight and Logistics Tom Jensen said in addition to no competition in the region, specialised vessels were required to suit to ports with no ship-to-shore cranes.

“The presence of a single dominant player in the region largely disconnects the local market from the broader trend,” he said. “This exclusivity has created an environment with limited competition, while global factors like inflation-driven cost hikes, persistent high fuel costs, and geopolitical challenges undoubtedly contribute to any price inflation.”

Regions were also waiting to hear how a $64 million dollar state government commitment would target freight disadvantage. The funding was announced five months ago at a Cost of Living Summit held on Waiben, and was to be invested over five years.

Member for Cook Cynthia Lui said the Department of Transport and Main Roads had consulted with the relevant local governments.

“Supply chains in these areas can be complex, with significant distances and operational challenges impacting freight costs, which can make essentials like food, clothing and other goods more expensive,” she said. “The strong feedback received from the consultation made clear that the subsidy should be delivered directly to users on the ground.

“Minister Bailey has written to each of the mayors whose community will receive this subsidy, and I look forward to working with them as this program is rolled out.”

Sea Swift, said they were also waiting for the subsidy arrangement details.

Chief Executive Officer Dwayne Freeman said freight industries were suffering price rises like all other industries.

“We are hoping the announcement will aid in easing the cost of living for these remote communities by reducing the cost of everyday essentials such as food, fuel and vital supplies,” he said.

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