TRADE WITH FIJI.

Auckland Star, Volume LXIX, Issue 224, 22 September 1938, Page 15

TRADE WITH FIJI.

DIFFERENTIAL FREIGHT RATES

NO REDUCTION POSSIBLE.

Recently the Auckland Chamber of Commerce wrote to the Department of Industries and •Commerce pointing out that one of the disabilities under which Xew Zealand suffered in the trade with Fiji was the fact that freight rates from Sydney and Auckland to Suva were identical, although the distance from Sydney was substantially greater. The secretary of the Department of Industries and Commerce has replied to the letter of the Auckland Chamber as follows :—

I have to advise that I have diecussed the question of the differential freight rates with the general manager of the Union Steam Ship Company and the C. and A. Line. Briefly, the information given by the general manager is as follows:

"Existing freight rates are based primarily on the costs of loading and unloading, distances involved in this case bavin? little influence. While, therefore, the distance from New Zealand .*? Fi,i is ,ess tftan from Australia to Fiji, the loading costs in New Zealand ports are almost double the loading costs in Australian ports. °

"I have been assured that were it at all possible, these Xew Zealand shipping companies' would be only too eager to reduce freight rates Zealand, for under existing circumstances thev would benefit from any resulting increase in trade. However, taking all the factors involved into consideration, it is not possible for these companies to make any such reduction at the present time."

Another point wm that nothing but a material reduction in the existing fr 81 *** rate " ehar ? e d would increase the ability of New Zealand commodities to compete in the Fijian market with many forms of Australian and British commodities, which are now being increasingly imported into Fiji, states the letter. p e se freight rates averaged ov/ per ton (measurement) at the present time, and, as stated above the company could not make any reduction in this figure at the present time.

I regret, therefore, to have to advise that owing to the existence of the above influencing factors, this Department has been unable to make any arrangements with the shipping companies in the matter of effecting a reduction in the £ e .^ h * rates between New Zealand and *iji, the letter concluded.