N.Z. likely to pay for idle ships

Press, 16 December 1981, Page 2

N.Z. likely to pay for idle ships

PA Wellington New Zealand is likely to pay the huge costs of detaining four refrigerated ships that have been ordered to stand idle until Iran pays for its cargoes of lamb.

The Meat Board ordered the first of the ships to stay in port on October 5 after the Iranian meat Organisation failed to arrange letters of credit to pay for lamb cargoes.

Three ships still wait in New Zealand ports and the fourth is in the Persian Gulf, all employing full crews and daily eating up money as the .impasse continues. Meat industry leaders said yesterday that New Zealand would probably have to bear the costs of the delays, known; as demurrage payments.ajs a commercial cost in dealing with Iran. ? Thej shipping line in the Iranian?,trade, Blue? Star,, is also , believed to be restive about the delays. The ships,, held up are not used ’full? time on the run, and have other charters to go' to.

The four ships are the Beacon Hill, anchored at Khorfakkan, in the United Arab Emirates; the Mandama, still at Bluff; the Pisang, at Napier; and the Timaru Star, at Auckland.

A fifth ship, the Almeria Star, was unloaded in late October against Meat Board orders in circumstances that

have not yet been explained. Her cargo has not been paid for.

The five cargoes are worth ?42 million. One cargo, worth $9 million, was unloaded in late October from the Hidlefjord and has been paid for, bringing some hope to the Meat Board that an end to the problem is in sight. Asked yesterday if new Zealand would try to shift the demurrage payments on to Iran, Borthwick’s marketing manager, Mr Brian Freeman, said: “I cannot see it happening.” He said it was usually borne as a commercial cost by the supplier. Meanwhile, another lamb cargo to Iran is being inspected carcase by carcase after a . ship’s refrigeration machinery failed. The 2400 tonnes of lamb aboard the Chion Trader were paid for ■ arid > wejre unloaded in midOctober at Bahrain after the machinery failure.

Techpically the meat belongs to Iran, but is in the hands of the shipping company and insurers. A Meat Board chief supervisor, Mr Ernie Greville, is on hand “as a courtesy” in Bahrain as the meat is sorted .into the good and the condemned. The Meat Board’s publicity manager, Mr Maurice Jones, said yesterday that the shipping company had insured the cargo.