Loss of carrier’s service raises fears

Press, 27 February 1986, Page 36

Loss of carrier’s service raises fears

PA Auckland A shipping line which carried almost $2O million worth of wool exports a year has been closed, prompting fears of an increase in freight charges.

The New York-based Atlanttrafik Express Service, Ltd, carried about 5 per cent of New Zealand’s wool exports to Europe and almost all the $l5 million worth of New Zealand’s trade with Mauritius.

In a surprise announcement, A.E.S. told its agent to refuse further bookings

and make alternative arrangements for cargo already booked in its ships. Senior Wool Board staff have been meeting to assess what effect the stoppage will have on exports. The board’s general manager, Dr Grant Sinclair, said A.E.S. had offered “very competitive rates” and the loss of its service could mean an increase in export costs on some routes.

Other, more expensive shipping lines, would pick up exports to those destinations.

The board had no outstanding contracts with the shipper and Dr Sinclair would not say what price increase he expected. An A.E.S. spokesman in Auckland declined to comment on the its position.

The company’s president, Mr Claes Uggla, said it had closed after dealings with two companies it is now suing. The company has three vessels which called in New Zealand regularly.