SHIPPING FREIGHTS TO RISE

Press, Volume XCIX, Issue 29272, 2 August 1960, Page 14

SHIPPING FREIGHTS TO RISE

£1,380,000 Added To Export Costs

(From Our Own Reporter)

WELLINGTON, August 1.

A 6 per cent, increase in shipping freight rates for New Zealand’s primary exports—an agreement to this effect has been reached in London between representatives of the New Zealand Conference Shipping Lines and the producer bodies —will add £1,380,000 a year to the cost of sending the country’s principal exports to the major markets. This will mean that the annual bill will be more than £24m., which represents 7.5 per cent, of the country’s earnings of overseas exchange.

It will bear most heavily on fruitgrowers. There are only 800 orchardists in the country, and already they pay an average, of £1250 a year in freight charges. With the increase in rates their average annual freight bill will rise by about £75. Meat and wool producers will be the next hardest hit if, as expected, the „ per cent increase will also apply to wool exports. No decision has yet been made in this section. If it applies, wool and meat producers will have an average rise in freight costs of £44 a year. Dairy farmers will be least hardest hit. Their yearly freight bill will increase by an average of £8 a producer. The increases in the various industries will be:—Dairy industry, £300,000; meat industry, £600,000; fruitgrowers, £60,000; woolgrowers, £420,000.

The Apple and Pear Marketing i Board suffered a gross loss on exports last year of £583,006. Plans ’ exist for turning this loss into a . profit, but these have been dealt a hard blow by the freight rates I increase. The increase in freight rates I was reported in an N.Z.P.A.- ■ Reuter cablegram from London > today. It said that the Confer- , ehce Lines had completed discusi sions on renewal of agreements . with the New Zealand Meat Proi ducers’ Board, the New Zealand ’ Dairy Products Marketing Commission, and the New Zealand ; Apple and Pear Marketing Board ; for carriage of meat, dairy pro- ! duce, and fruit. It was agreed to renew the ■ existing agreements for another , three years, and to increase , freight rates by 6 per cent, from ; September 1 for the ensuing season.