Inward Freight Rates Increased

Press, Volume CIX, Issue 32068, 16 August 1969, Page 46

Inward Freight Rates Increased

(N.Z.P.A. Staff Correspondent) LONDON, August 15. Rates of freight for the shipping of cargo from British, Continental and Scandinavian ports to New Zealand are to be increased by 5 per cent on November 1.

The increase, which will add about £200,000 yearly to shippers’ costs, was announced today by the New Zealand European Shipping Association.

The chairman, Mr W. A. Dawes, said the lines concerned British, Dutch, French, German and Scandinavian regretted the increase but it was made necessary by many factors, including increased costs.

Rates for the export of cars to New Zealand are excluded from the rise. They are to remain at the present levels until at least January 1, when they will become subject to separate negotiations with the Society of Motor Manufactur ers and Traders. Mr Dawes said the increase would probably have been higher had it not been for the improved discharge and loading times at New Zealand ports. Inflation in Western Europe, was now more than 5 per cent: annually, and the lines had no [ alternative to higher rates if' they were to run their ships on a commercial basis.

“Speaking particularly for the British lines, the increase was decided after consultations with shipper organisations," he said. “There have been increased ; costs for stevedoring, port, charges, crew wages, crew victualling, stores, ship re-1 pairing and fuel. In addition there has been slow turnround of ships in British ports because of labour disputes—offset to some extent by an improved rate of discharge in New Zealand.

“Another factor is the sub-; stantial fall in exports to New Zealand from Britain since 1965. caused by successive reductions in import licences. “Although the New Zealand Government has said it will remove a number of items from import licences, it is un likely there will be any rapid : increase in cargo.

“This obviously means that, the imbalance between the outward and homeward New Zealand trades will continue and that the cost of provid ' ing the New Zealand service will increase." Mr Dawes said. The volume of trade ear' ried to New Zealand from: Britain fell by 25 per cent between July 1, 1966, and: July 1 this year, Mr Dawes, said. Outward trade amounted to about one third of that carried from New Zealand to Britain.

The British Lines had, he said, made an ar rangemen 1: for the Port of London Air thority to give exporters ship ping to New Zealand a reduc-j tion to 25s a ton as a contribution toward wharfage and porterage charges levied byi the authority. The arrangement would come into effect' from November 1.

The arrangement would I help shippers offset the higher freight rates. The last increase in the out-

ward freight rate was in late 1967. It was 84 per cent, reported to have been made solely because of the devalu-

ation of sterling. It came shortly after a 5 per cent rise. Only the freight rate for general cargo shipped from New Zealand to British and European ports has not been raised in recent weeks. But ' it, too, is expected to rise—probably by 2) per cent. An announcement is expected soon.