‘Unreal’ freight rates push tip prices on goods for S.I.

Press, 21 January 1982, Page 7

‘Unreal’ freight rates push tip prices on goods for S.I.

3 Grocery shortages can be fflnoying' for South Island hoppers, who suffer more han their North Island counterparts. | Most manufacturers are rased in the North Island ifid - increased freighting bsts and delays, industrial Irruptions, and ferry stoppages are reasons cited by. ’firistchurch wholesale distributors for periodic shortiges in the city. The North sland market with its bigger Population and proximity is ffit affected to the same stent. '■Australian groceries filling Ihristchurch supermarket helves was one suggested Olution for the future. The wholesale operations Manager for Foodstuffs Ihristchurch. Ltd. Mr W.

Barber, said that the proposed closer economic relationship agreement between Australia and New Zealand could make Australian goods cheaper to import than freighting the same goods from the North Island. “There was an instance the other day when we had a container of matches sent from Sydney to Lyttelton cheaper and. quicker than from the North Island.” he said. February is the time of year when out-of-stock lines traditionally increase. With makers restarting production after their Christmas break, Mr Barber predicted the usual shortages next month until fresh goods were delivered to restock lines that sold out during the holidays.

New Zealand’s small population was one reason forout-of-stock products. Economy made many firms make ah item in several big runs rather than year-long production, hoping that demand did not outstrip supplies between runs.

A spokesman for G.U.S. Wholesalers,' Ltd, said that many of its “out-of-stock situations" were North Island products which made up 70 per cent of stock. At one stage last year about 15 per cent of its warehouse stock was unavailable.

The problem had worsened during the last year, said the spokesman. G.U.S. buyers were "flat out” trying* to restock lines which ran low during the Christmas break when makers closed.

Another spokesman for J. Rattray and Son. Ltd. said that rationalisation w’as also affecting the grocery trade. Manufacturers were reducing sizes in their product ranges.

"We have had our problems." he said. The South Island market was the "small majority" which suffered during shortages. Electrical appliance and furniture stockists appear to have similar problems. The sales manager for Noel

Leeming TV and Appliance Centres. Mr J. W. Maynard, said that North Island makers preferred to sell "plum lines" locally because of high freight costs across Cook Strait. A director of McKenzie and Willis,. Ltd, Mr J. Willis, said that the furniture firm had tried to buy as little stock as possible from North Island makers because of the “unreal" freighting charges. He believed that the same amount of furniture could be shipped from Australia at a more competitive price. McKenzie and Willis already imported a lot of Australianmade furniture but the difference in exchange rates prevented Australian makers from sending more goods across the Tasman. .<. Last month the Government approved a 3.5 per cent increase in scheduled rates for freight forwarders. At the same time many freight firms were awarded a 10 per cent increase in pick-up and delivery charges, although many * companies freight goods at negotiated discount prices. Some of the smaller grocery makers also have a price differential built into products sent to the South Island to recoup freight costs.