Last Friday, the economic actors of Reunion Island gathered to discuss the rising freight costs, their consequences for the economy of the island and the solutions that can be implemented.
Since the beginning of the pandemic in March 2020, global maritime traffic has experienced disruptions in supply and costs. In one year, the price of raw materials has increased by 25%. However, 93% of the trade between Reunion companies and foreign suppliers/clients is done by sea. The island has had to adapt to these higher costs. For example, companies have had to increase their stocks in order to avoid supply disruptions due to freight delays.
Patrick Lebreton, first vice-president of the regional council, “plans to make available, in partnership with the Public Investment Bank, regional means such as loans, funds or compensation for additional freight costs.” And among the different avenues studied, the creation of a regional maritime company will be discussed among public and private partners in the coming months.