Freight futures system suggested

Press, 11 June 1987, Page 23

Freight futures system suggested

PA Wellington New Zealand’s shipping industry should develop a freight futures system to service the Pacific, according to a visiting British shipping expert. Addressing transport institute members in Wellington, Professor David Mawby, dean of maritime studies at Plymouth Polytechnic, said New Zealand had a unique opportunity to use its 12-hour time difference to trade currency and futures while overseas exchanges were closed. Futures had become more popular with change and innovation affecting shipping more quickly than in the past, Professor Mawby said. He said shipping was at the front of. the battle between capitalism and communism in the inter- : national- market, place . with no one certain which

way things should go. “There are three ideologies in shipping today — capitalism, communism and confusionism — and we all seem to be in that last bracket,” he said.

The main problem facing shipping was that there were too many ships, he said.

“Even after eight years of depressed freight rates Japan and the United States continue to order massive new freight ships... they get built, the owners go bankrupt and the ships still float around contributing to the surplus.”

The emerging power of China in international shipping and the development of non-returnable containers: j would major effects on shipping trends in future, Professor Mawby said. '