Pacific Trade Invest (PTI) Europe is calling for innovations to help reduce freight costs and increase reliability for Pacific exporters looking to enter and grow in the European market. In a region where exports are critical for the Pacific Island economies they support, freight options are frequently unreliable, expensive, and often both. Due in part to the Pacific’s remoteness and infrastructure limitations, shipping and air freight providers often struggle to provide viable direct links to key markets and maintain consistent schedules for their customers.
Jodie Stewart, PTI Europe Trade Commissioner, said these challenges have tangible ramifications on what products Pacific businesses can export and how they can be marketed.
“To illustrate the difference between our region and competitor markets, a 20-foot container shipped from Singapore to London typically costs US$2,000 and will arrive in 30 days. The same container travelling from Suva to London can cost up to US$5,000 and take 60 days, meaning it costs twice as much and takes twice as long.”
"Despite these challenges, Pacifc businesses successfully export into both specialty and bulk markets, but there are implications for the products and markets that Pacific businesses can pursue. SME exporters often need to focus on products that are high margin, low weight, long shelf life, and build their marketing around ethical production and the unique provenance stories of our region. Building direct relationships with buyers to develop loyalty and connection over time is also critical."
Stewart said there are solutions and examples of systems working to ease this challenge. One such example is the consolidation of Pacific cocoa, copra, palm oil and coffee in Asia-Pacific hubs such as Sydney, Singapore and Kuala Lumpur, before it enters the European market. These hubs provide scale, processing facilities and frequent services, providing an entry point into bulk and specialty markets.
PTI Europe is welcoming discussion from stakeholders invested in this important subject, to explore what can be achieved. Identified areas for opportunity include working with shipping companies to regularise schedules so exporters can supply markets more consistently; establishing collaborative storage hubs in key export destinations; and exploring advance purchase of shipping containers to ensure a ready supply when ships are available. Other practical measures include combining bulk and small-to-medium consignments to achieve scale, and improving supply-chain coordination to help exporters deliver higher product volumes more consistently. Stewart noted that while many of these solutions will require multi-stakeholder coordination and sustained effort, progress will depend on collective action rather than any one party alone.
While moving products out of the Pacific may always cost more than from other regions, Stewart said PTI will continue to support businesses trialing innovations that reduce freight costs and add value. She emphasised that addressing these challenges requires shared commitment across governments, freight providers, and exporters alike, with progress built on collaboration rather than competition.
“Freight challenges can’t be solved in isolation,” said Stewart. “It will take collaboration across all sectors - but by working together, we can create systems that make Pacific trade more efficient, reliable, and connected to the world.”
For further information on Pacific exports into Europe, contact PTI Europe here.
