COAL FREIGHTS

Evening Post, Volume CII, Issue 5, 6 July 1921, Page 5

COAL FREIGHTS

REASONS FOR RECENT INCREASE.

The statement made .by Mr. C. Holdsworth, managing director of. the Union Steam Ship Company, in connection with the increase of 2s 9d per ton in the coal freight between Wellington and West Coast, is fully reported in' the Otago Daily Times. Mr. Holdsworth said that the necessity for the increases had been full^ explained to the coalmining companies for whom they" carried, during the course of negotiations. : It would, however, be only fair if the reasons for the advances were also placed before the public. . - .

Mr. Holdsworth stated that the ■ rates of freight charged up to the end of last month were not nearly sufficient to meet the expenses of steamers employed on jthe West Coast.' Their'operations for llast year left a heavy loss on actual running .expenses, without making provision for depreciation of the steamers, and the next six months resulted in.-' an' even larger deficit. Unfortunately expenses had not yet reached the"-'.'peak," and bunker coal supplied in New Zealand had within the last few weeks increased about 40 per cent, according to description, and quality of the coal. The cost of provisions was the only item-showing a tendency to fall, but wages, labour ashore, overhauls, etc., and, as stated above, bunker coal, showed no signs of coming down.

In these circumstances increases were absolutely necessary, and for the next twelve months the coal companies.;. had' agreed to advances varying from 2s 9d per ton to Wellington and Lyttelton Eo a maximum of Ss a ton to a roadstead port where dispatch continued very poor, the Tates varying with the mileage and dispatch obtainable. '. '.

The directors regretted such increases were necessary, and would reduce the rates whjen the cost of operating steamers came down.

To demonstrate how the multifarious costs connected with the running of steamers had increased since 1914, Mr. Holdsworth showed/ a reporter figures which had been taken out relative to the expenditure required to keep ' them in commission.

Six vessels running on the West Coast were tabulated to show the comparative, costs in 1914 and 1921. The figures proved rather alarming (states the Times). The increases in overhauls alone showed an advance of approximately 300 per cent, as compared with 1914. The cost of working cargo on'the six vesßek had increased roughly by 140 pey centf in comparison with 1914. The other many expenses have also increased in ft relative ratio.