Concern At Rise In Sea Freight Costs

Press, Volume CIV, Issue 30763, 29 May 1965, Page 15

Concern At Rise In Sea Freight Costs

(N.Z. Press Association —Copyright)

SYDNEY, May 28.

Manufacturers would be “hard hit” by a .5 to 10 per cent increase in shipping freight charges to the Far East, announced yesterday by the Australian-New Zealand Eastern Shipping Conference, the president of the Australian Manufacturers’ Export Council (Mr W. J. Austen) said last night.

He said Australian export manufacturers would form a comittee to investigate rising shipping freight charges. The committee would negotiate with shipping companies on planned freight charge increases.

Freight charges to South Africa. Blast Africa, the Persian Gulf, India and Pakistan already have been increased. The Australian-New Zealand Eastern Shipping Conference. of 11 shipping lines, announced yesterday that the new Far East rates schedule would operate from August 1.

Mr G. P. Johnson, chairman of the conference, said the new rates would apply to shipments to the Philippines, Hong Kong, Formosa. Korea. China and Japan.

“Member lines have been forced to review their freight rates because of the steadily rising costs of operating ships —particularly higher costs associated with the slow turnaround of vessels in Australian ports,’’ he said. "The new rates will represent additional charges of about £350.000 a year in a total freight bill of about £l5 million. “At least half of this in any case is spent in Australia in payment for stevedoring charges, harbour dues, ships’ stores and other operating expenses.

“This is the first general rise in freights to the Far East since 1961.” Mr Johnson said crew wages, stevedoring, repair and maintenance charges had

risen so steeply that shipping lines could not absorb them in current freight rates. Mr Johnson said members of the conference were aware of the significance of shipping rates to exporters. But the decision to increase rates had been forced on them by factors beyond their control. Mr Austen said export manufacturers were deeply concerned by the freight rises, particularly since they came after increases in shipping charges to Africa and the Persian Gulf. “We are concerned that the increases will make our products uncompetitive. Manufacturers now have no say in rate rises. We don’t ask for better freight rates to these areas—just competitive rates,” Mr Austen said.