“LIFTING” EXPORTS.

Bay of Plenty Times, Volume LX, Issue 10835, 6 April 1932, Page 3

“LIFTING” EXPORTS.

RIG SHIPS COME OUT EMPTY. In order to lift all New Zealand primary products available for export, a fairly large number of steamers came out to the Dominion in ballast last season. The number of these empty vosels will be greatly increased before the current export season is over, and it is probable that they will number 33 or 34. Some of them will he bringing out basic slag, but the freight is so low that, taking into account handling and other expenses, it is generally regarded by the companies as equivalent to ballast so far as the ship’s earnings are concerned. It is an obvious fact that the freight rates on cargo carried one way have a strong bearing on the freight rates on cargo carired on the return trip, in short, it is the voyage rather than the passage that is into account in the adjustment of freight schedules.

Customs returns indicate the great falling off in imports by New Zealand, and the corresponding decrease in the tonnage of cargo for New Zealand loaded in the United Kingdom and other countries. But that is not all—exchange enters into the picture. The freight charges of the shipping companies engaged in the United Kingdom and New r Zealand trade as to a large part of the cargo loaded here are payable in New r Zealand. A relatively large proportion of these earnings is required to meet payments in New Zealand for wages, stores, and other outgoings; but the balance has to be remitted to London, and upon that transaction a loss of 10 per cent., is made by the shipping companies remitting funds in respect to exchange. For all this, the export services are maintained and all tonnage required to lift the cargo offering is provided, as it appears to the shipping companies that their services are vital to the Dominion, and must be performed notwithstanding the obviously heavy loss that is inevitable in bringing out 33 or 34 big ships empty, or practically so, in order to get the produce to market. What that loss may be it is not easy to ascertain: but taking, say, £SOO a day, and a passage of 40 days out, it would amount to £680,000, and probably £700,000 would be a conservative estimate.