Heavy loss for Shipping Corporation

Press, 11 October 1979, Page 2

Heavy loss for Shipping Corporation

p PA Wellington The Shipping Corporation f of N.Z. has recorded a loss of o $4.2M for the year ended f March 31, 1979, according to s its annual report tabled in f Parliament yesterday. t This is more than five c times the $816,000 loss rei corded for the previous financial year. J The commissioning of the fiNew Zealand Pacific, New 1 [Zealand’s biggest container ' I vessel, was a landmark for e I the corporation last year, but j: the outlook is not bright. lj Sir John Ormond and Mr . j I. M. Mackay, directors of the t! corporation, said that they [saw the next three or four

years as a “difficult period for ship-owning activities.” i| “The two factors determinfling this prediction are the iiworld-wide over-supply of ) I vessels, and the alarming rise i in bunker fuel prices,” the report said. - “The world-wide over-sup- • ply of tonnage continues, and ■ this is likely to have disruptive effects on established; ? liner trades.” ' According to the report, r some shipping firms enjoy r substantial assistance from t their countries through cheap loans, subsidised ship-build-* ■ ing posts, and running grants, ! but the corporation, and f many ship-owners histori--1 cally associated with trade to New Zealand, are in no position to compete commercially with these heavily subsidised shipowners. 1 “If this type of shipowner i receives good support it [could quickly disrupt established shipping services to ; our international markets,” [ Sir John said. “This may then * cause a reduction in the overall quality of shipping seri vices provided, and higher I transport costs.” However, the corporation hoped that it would cater for an increased share of the trade to and from Britain and (Europe in the 1979-80 year. ' “The corporation will be | alert for new trading opportI unities which would benefit by New Zealand participai tion. Probably the most releivant of these will be the ! possibilities under develop- [ ment in Asia," the report I said. i The purpose-built con-; jtainer vessel. New Zealand [Caribbean will be cotnmis-j isioned this year and will ■ trade between New Zealand, j Australia, and the CaribbeanUnited States Gulf area.