Meat shipment savings seen

Press, 11 July 1983, Page 2

Meat shipment savings seen

PA Wellington Four shipping lines have been given the go-ahead to compete for New Zealand’s $3OO million meat export trade to the United States east coast. After telephone conversations with the lines, the Meat Board’s general manager, Mr Jim Bremner, said the New Zealand Shipping Corporation, the ABC line of Antwerp, the Columbus line of West Germany, and the Pace (ACTA) line of Britain would all be designated as carriers.

All will have equal billing after August 1. They must all serve a range of ports in New Zealand and the United States, and will have a maximum freight rate to adhere to. That rate is below the

present ruling freight rate on the trade, but the Meat Board is not saying how great the cut is. Below the maximum rates, all four carriers can charge what they like. Whoever charges least, and offers the best service, can have as much of the trade as they can carry. Mr Bremner described the deal as bringing “substantial” savings of the meat export freight bill, although he would not specify a figure. “Within the constraints of a maximum rate, we are going to allow market forces to act. In other words, the four carriers will be free to set a rate and they will get cargo according to how they service the trade.”