Shipping in ‘bad state’

Press, 20 November 1978, Page 12

Shipping in ‘bad state’

New Zealand had to find alternatives to the two main shipping lines serving it if it was to avoid a dangerously weakened shipping service, a sea-transport consultant, Mr E. J. Hobbs, told the New Zealand Chartered Institute of Transport in Christchurch. The institute was holding its annual two-day conference in the city. “No manufacturer ties himself so tightly to one supplier that he is unable at any time to break free,” said Mr Hobbs. “But New Zealand has done this to a dangerous level in shipping. “What New Zealand must do now is urgently examine and preferably support, as a policy, an alternative, direct, non-conference service.” Mr Hobbs suggested that New Zealand offer a direct four-weekly service to Singapore that would include two or three New Zealand ports and link at Singapore with

world shipping routes to Hong Kong, Indonesia, Japan, Korea, the United States, Canada, Europe, and Britain, and the Middle East. Seven lines working from Singapore offered very competitive rates. Competition was still the greatest leveller. Although it would be “pure folly” to replace the conference system, it kept freight costs too high and encouraged overinvestment in the lines by the shipping companies. Conference operators assumed that they should provide all the services, including that for additional tonnage, that alternative operators were “fly-by-nighters,” and that conference shipping was the most efficient. But a different type of vessel could now service at least four international trades from New Zealand at lower freight rates.