Coastal Freights Increased

Press, Volume CVI, Issue 31247, 20 December 1966, Page 3

Coastal Freights Increased

(N.Z. Press Association)

WELLINGTON, December 19.

Most coastal freight rates will be increased 10s a ton on January

An official of the New Zealand Shipowners’ Federation said today that coastal shipowners operated their vessels with New Zealand labour under New Zealand wages and conditions, and operating costs reflected the high wage structure of the country. “The last freight increase took place over two years ago, and in the intervening time the industry has been faced with appreciable extra wage payments for watersiders and maritime unions, culminating in the 2J per cent general wage order recently announced,” he said. “These have resulted in heavy additional wage bills for the shipowners, and while the companies are well aware of the desirability of holding rising costs and avoiding any increase in distribution charged in the interests of the national economy, they

are faced with rising charges which cannot be absorbed.

“Active steps have been taken over recent years to improve the economics of coastal shipping, and to modernise cargo-handling and speed ship turn-round by the provision of new and efficient vessels and equipment, including pallets and containers and by using mechanical

handling equipment where practicable. “In spite of some operational savings as a result of these steps, rising costs have overtaken revenue and there is no alternative, if the ships are to continue in operation, but to follow the lead of industry generally in New Zealand in passing on the rising charges.

“The amounts of the increases will vary with different trades and commodities, with the average rise for the majority of general cargoes being in the vicinity of 10s a ton. There will be no change in the rates by the roll-on service between Wellington and Lyttelton, where cargo is handled entirely by ‘unitised’ methods.