Firms’ decision on Suez use

Press, Volume CXV, Issue 33883, 1 July 1975, Page 14

Firms’ decision on Suez use

(from Our Own Reporter>

WELLINGTON

Ships plying the New Zealand-Mediter-ranean trade will use the Suez Canal, but at the discretion of their shipping companies. Both shipping lines and exporters will need to make special arrangements with their underwriters.

The Western Lines, which are members of the New-Zealand-European Shipping Association, have failed to reach general agfeement on whether to use the Suez Canal, and shippers in NewZealand havj been advised that, until further information about insurance and canal dues is available, the individual shipping lines will' make their own decision. Less than a 5 per cent coat advantage is gained by using the Suez Canal rather than the Cape route, and some of this mar- 1 gin is taken up by increased insurance premiums for ships using the canal. Uncertain Middle East politics have added to the caution with which the lines view the re-opening of the canal. The position of goods consigned for Israel is still far from clear. The Egyptian Government has hinted that it would permit Israel-bound

cargo through Suez, provided that it was “non-strategic material.” Egypt has not specified what such material is, and it is not expected to be more explicit, but the lines consider that cargo of no military value should pass through the canal without problems. Only one ship leaves New Zealand for the Mediterranean every six to eight weeks, so New Zealand cargo will not be a major user of the canal. Cargo bound for Britain or the Atlantic coast of Europe passes through Panama, which is quicker and cheaper. Arrangements are beingmade for ships leaving New Zealand to pass through the Suez Canal. A ship carrying New Zealand wool and hides is bound for Suez at present. It is owned by the Yugoslav shipping line Jadranska Slobodna Plovidba.