“Shocked” By Rise In Wool Freights

Press, Volume CIII, Issue 30602, 19 November 1964, Page 1

“Shocked” By Rise In Wool Freights

(New Zealand Press Association)

WELLINGTON, November 18.

“American users of New Zealand carpet wools are shocked by the big jump in freight rates which will become effective on January 1 next,” Mr J. Acland, chairman of the Wool Board, said on his return from America today. “The members of the American Carpet Institute, all of whom are large buyers of New Zealand carpet wools, described the increases as being ‘unwarranted’ and ‘not justified’.”

Members of the institute had met him in New York last week to discuss the announcement by the Montreal-Australia-New Zealand Line of a 10 per cent increase in wool freight rates to East Coast ports of the United States, and a similar increase to East Coast ports and 15 per cent to West Coast ports, announced by the Columbus Line.

“They warned that the increases, which would raise the price for a pound of clean wool by two to three cents, would discourage the use of New Zealand carpet wools in the United States,” said Mr Acland.

“They said the increases came at a particularly unfortunate time as high prices had already reduced the demand for New Zealand carpet wools. This would work to the advantage of New Zealand’s competitors. “Initially, the institute in-

tend taking up the matter with the M.A.N.Z. Line and the New Zealand Government,” said Mr Acland. “The American market is of vital importance to New Zealand and we must do all we can to hold costs in this the homeland of the synthetic interests.

“In its announcement the M.A.N.Z. Line stated there had been no increases since October, 1960, and even with the increase, freight levels would not be as high as those which existed in 1957.

“This may well be- so, but it does not alter the fact that wool faces a vastly increased amount of competition today, compared with the position seven or eight years ago, “It is imperative for the future welfare of this country, as well as the welfare of farmers, that our wool continues to be freely available on the great American market. “The International Wool Secretariat is making great efforts on wool’s behalf in the United States and spending large sums of woolgrowers’ money to maintain its position. But all this earnest activity will come to nothing if wool is priced out of the market through high costs, including high freight charges. “I hope both these companies will reconsider their announcement.”