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Shipping cost

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2020.07.13

2 Senator K.L. Moore of the Minister for Treasury and Resources regarding shipping

cost: (OQ.190/2020)

Will the Minister confirm how much the Government of Jersey spends annually on shipping costs? Deputy S.J. Pinel of St. Clement (The Minister for Treasury and Resources):

It is very difficult to ascertain the true shipping costs paid by Government annually as this is complex in nature. Predominantly most goods purchased are inclusive of shipping and duty costs, so these are not easily identified for management information. A large proportion of our procured goods are from on-Island suppliers who do not separate a price out for the cost of inbound freight. Where freight is charged separately this is recorded as an individual purchase order level. There were approximately 80,000 purchase orders issued in 2019 and therefore, without reviewing each of those orders, it is difficult to ascertain the total amount paid. Commercial services have identified £65,000 worth of expenditure in 2019 for inbound freight with local shipping suppliers and in the region of £700,000 for exporting solid weight. Freight prices fluctuate depending on size of shipment, volume, transport method, border controls and type of goods being sent so an average annual amount of expenditure is very difficult to define, as there are so many variables to consider.