Shipping Service Found Wanting

Press, Volume CVIII, Issue 31728, 11 July 1968, Page 28

Shipping Service Found Wanting

(N.Z. Press Association) WELLINGTON, July 10. The vagaries of the shipping services from New Zealand are costing the country dearly in export opportunities, according to a report prepared by the Department of Industries and Commerce. An Auckland exporter recently lost an order for $52,500 because he could not nominate a definite delivery date. Another exporter lost a trial order for frozen vegetables worth $lOOO. The order could have led to an export trade of $22,000 annually. Many bulky items are now being sent by air to Australia because of the irregularity of shipping and the inability to guarantee space, the report says. A severe shortage of air space has developed. The report is a preliminary outline of the results of a survey of the shipping to Australia and Asia. The survey was undertaken by the Trade Promotion Council in conjunction with the Exports and Shipping Council. Area

survey work was done by the Department of Industries and Commerce. The Exports and Shipping Council considered the preliminary report this morning. It is almost three years since the department last surveyed trans-Tasman shipping problems, but the pattern of exporters’ expenses has not changed, although repeated efforts have been made to gain improvements, the report says. “Then, as now, the bulk of export tonnage to Australia was successfully moved. For many exporters the service is reasonably adequate for their needs. However, the survey clearly shows that many exporters are experiencing serious difficulties in a significant sector of the trade, and their ability to export is being hindered.” The irregularity of services, late advice of ports of loading, the need to tranship goods in New Zealand and Australia, and shortage of freight space were cited. It was difficult to arrange sales in Australia because an exporter often could not state even approximate delivery dates, and it was extremely difficult to cost an item, including freight, without a firm schedule of ports. Particularly since devaluation, there was a trend

toward long-term contracts for regular supplies. These sales were jeopardised because regular deliveries could not be guaranteed. Some manufacturers and producers expected to increase exports to Australia by 200 per cent to 300 per cent in the next three ygars. Complaints about shipping were too widespread to be ignored. The Union Steam Ship Company, which moved practically all export tonnage from New Zealand to Australia, had been delayed about three months by the loss of the Wahine in plans to integrate its coastal service with the new roll-on service to Australia. The first roll-on vessel was not now due until December,

and the second until March, because of industrial disputes at the shipyards. This new service eould alleviate many problems disclosed by the survey, particularly those of forward scheduling and regularity of sailing. However, problems of a different nature could be created and freight rates, transhipment problems, and the shortage of freezer space could worsen. Shortage of space, including freezer space, and transhipment problems were difficulties in shipping to Asia. The report draws attention to space wasted by exporters who book larger tonnage blocks than required, then cancel the unused portion at the last minute.