High cost of goods in American Samoa raises grave concerns

Pago Pago, AMERICAN SAMOA — One of the issues discussed during a special meeting of lawmakers on Monday this week is the high cost of goods, as lawmakers voiced concerns over the significant increases — from food to building materials.

In response, the Fono named a special committee to take up the task of looking into the causes and provide recommendations on ways to address them.

Committee members from the Senate are Sens. Magalei Logovi’i, Satele Lili’o, Malaepule Saite Moliga, Fai’ivae Iuli Godinet and Ponemafua Taleni while from the House, the memers are Reps. Sam Meleisea, Larry Sanitoa, Vailiuama Steve Leasiolagi, Vaetasi Tu’umolimoli Moliga and Vailoata E. Amituanai.

No timeframe was given as to when the committee would start its work and when it would provide its first report.

There have been a lot complaints within the community regarding the spike in the prices of imported goods, especially food items in the past several weeks.

Two representatives of the private sector told Samoa News early this week that there’s been an increase in costs from suppliers off island as well as shipping. As a result, the private sector will be passing these ‘increases’ on to consumers — through the price of goods and services, and of note there is also the new federally mandated minimum wage hike of 40 cents per hour, which was effective Sept. 30th.

Internationally, the demand for home improvement projects is everywhere, but the products are simply not available in most stores and supply houses. Manufacturers are discontinuing less popular products. Ships wait off the California coast, unable to dock to unload their cargo. Truck drivers are overwhelmed, often confronting long wait times. Railyards are clogged, with trains backed up for miles outside key ports and distribution facilities.

The commercial supply chain that each year brings over $1 trillion of consumer goods from Asia is clogged. No one knows how to overcome this supply chain issue. The unfortunate result is a rapid increase in prices across all industries and product categories along with shortages of products.

WHAT CAUSED THE SUPPLY CHAIN BREAKDOWN?

In addition to the COVID restrictions shuttering factories and preventing supplies of raw materials, today the main issue is with what used to be low-cost and readily available - shipping containers. Two years ago, a container cost less than $3,500 to transport goods from Asia to the U.S. Today the service fetches as much as $27,000. It is no longer about the price but about just having the ability to book a container.