SHIPS AND SERVICES

Evening Star, Issue 19019, 14 August 1925, Page 5

SHIPS AND SERVICES

TRADE WITH AUSTRALIA WORKING UNDER DIFFICULTIES. Press Association—By Telegraph—Copyright. LONDON, August S. A leading British ship owner was interviewed regarding the present position in the Australian shipping trade. He said that, oven at the present rates, homeward business from Australia was unprofitable. Under existing conditions, notwithstanding that we maintain regular, efficient, and frequent services, irrespective of seasonal or periodic depression, we have no assurance of the continuous support of Australian shippers,” said the authority. Companies owning liners are under an obligation to keep freights stable, and to treat largo and small shippers alike; whereas the trade, being open to all, as it is today, large shippers are enabled to charter to the detriment of the smaller man, and yet to retain the right to use our liner service when it suits them.

“ If it were possible in the Australian homeward trade to adopt a system similar to that introduced in the outward hade sorao two years ago, at the instance of the Imperial Shipping Committee, a prompt and general reduction in homeward freights could bo effected. This outward system _ stipulates that ship owners shall provide adequate services, and that shippers shall coniine their shipments to those services. Both sides can terminate the arrangement at comparatively short notice. “It is, however, open to legal question whether such an arrangement would not be contrary to the Australian Industries’ Preservation Act, and an authoritative pronouncement on that point would be welcome at the earliest possible moment, “Otherwise, if under the Australian law wo arc precluded from entering into binding contracts with shippers for their entire support, we iu turn are binding ourselves under a penalty to provide adequate services. It would appear that Australian producers must pay for that by forgoing the reduction in freights which could otherwise be obtained to mutual advantage of all concerned.”

The ship owner said be could not believe that any Australian, either a Government official or a business man, would oppose any action which, while not detrimental to Australian trade ; at the same time precluded intermittent competition by outsiders.— A. and Is./. Cable. .