Freight may go by air

Press, 30 August 1989, Page 3

Freight may go by air

Canterbury exporters are transferring sea freight to air in a bid to offset threatened chaos on the waterfront. The main banks have also been approached by the Export Institute to work out a format for dealing with financial problems that might be caused by shipping delays. The president of the Canterbury branch of the institute, Mr Ben Evans, said contingency plans were being formed in the event of drawn-out stoppages on the waterfront.

Mr Evans said he had heard of some companies booking air space in the case of prolonged action.

“We know that a number of our members are pretty nervous about having goods delayed at the port.” To protect themselves some companies were booking airfreight to ensure that they could get their products to their markets, albeit at a much higher price, Mr Evans said.

“If there is a prolonged stoppage air space is going to be at a premium.”

Mr Evans said institute members had two main concerns — the credibility of exporters in meeting their overseas deadlines and the cash-flow effect on some companies if industrial disputes on the waterfront were prolonged.

Action could result in orders being cancelled Some large companies had suggested that any prolonged stoppage could result in people being put off.