FIJI FISH GROUP
sends 280 home P12
Fiji Fish Group has shut down its fleet operations sending 280 workers home until further notice, said chief executive Grahame Southwick yesterday.
“Regrettably the Fiji Fish Group, as with many others, has been hard hit by the coronavirus pandemic circumstances,” he said.
“We were hit with a double whammy, in that while the virus was raging through the United States of America, all activities shut down as our buyers informed us that they would not be able to take any fish for the foreseeable future.”
Steep freight rates
“Simultaneously, all airlines stopped flying, so there was no way to deliver fish, even if we could sell.
“This is the current situation, except that there is one flight a week, cargo only, to the USA but the freight rate has jumped from about $3.80/kg to $10, and the market cannot accept that.”
Mr Southwick said Fiji Fish clients had turned to South America to source their needs as a cheaper alternative to Fiji.
“We may have lost these markets.
“We understand that there are some discussions concerning the freight rate, between Government and the airlines, but nothing definite yet.”
Cutting back
Fiji Fish Group has since instituted major cutbacks within its operation saying there was no easier alternative.
“We have had to stand down approximately 280 employees and either pay out their redundancy, or accept their offers to take leave without pay for a couple of months, in the hope that the situation may improve; it hasn’t.
“Given that the industry has been taking serious losses for some years, none of the major companies have had the capacity to sustain operations.” Mr Southwick said Fiji Fish had temporarily held key staff, including captains, engineers, and senior operational personnel that would form the nucleus of any attempt to rebuild the industry.
“Unfortunately, with zero income now, the final cut and point of no return is now only weeks away.”
Fiji Fish has a survival plan with Government which may yet save the industry if approved.
“If not, the final and permanent shut down of the domestic catching sector will occur within weeks, and Fiji Fish will continue to operate its foreign fleet service operation only.” Mr Southwick warned of its impact on supporting industries.
Feedback: frederica.elbourne@fijisun.com.fj