Freight war prospect

Press, 11 October 1982, Page 29

Freight war prospect

It was cheaper to ship freight across the Tasman than between Auckland and Dunedin, the managing director of the Union Snipping Group. Mr J. N. Keegan, said. "The cost of shipping a container on the Shipping Corporation's vessel Coastal Trader from Auckland to Dunedin is more than $2,600. but the vast majority of the Union Company’s ' transTasman freight is carried at substantially lower rates, he

said. This was the result of a flexible rating policy designed to encourage new freight and to boost volumes in both directions, but Mr Keegan said there had been a serious downturn in volume because of declining demand in New Zealand and Australia. And, noting the Shipping Corporation's intention of entering the trade soon, Mr Keegan warned it would be imprudent for, "even a priv-

ate sector ship-owner to commit his funds to this trade." Mr Keegan said that the Union Group's $3.6 million earnings — down from $8.3 million last year — were “disappointingly low" and reflected the downturn in freight volumes. "The deteriorating value of the New Zealand dollar also had a serious impact upon fuel and charter hire costs." he said.