Freight on N.Z. Produce

Northern Advocate, 14 March 1939, Page 6

Freight on N.Z. Produce

AN important conference will be held shortly in Wellington to arrange freight rates on New Zealand produce for the next three years. Many factois have, to be taken into consideration in determining freights, and it would not be surprising if the shipping companies press for a further increase in the rates, which were raised by 24 per cent, in 1936. Any increase has in the final reckoning to be met by, the primary producers of New Zealand for freights to England are a charge against their butter, cheese, wool and meat. It is hardly practicable—and certainly risky—to attempt to pass a general increase in freights on to the English .consumer, for such tactics only play into the hands of New Zealand competitors. It remains to be seen, of course, whether the shipping companies do press for an increase in rates, and if so, what grounds they offer in support of this claim. It is well-known, however, that the shipping companies have been seriously concerned over loss of time on the New Zealand waterfront owing to labour troubles which frequently, to the outsider, appear to be of a trivial and pinpricking character. Another problem which the shipping companies have to consider is the possible effect of import restrictions on outward freights towards the latter end of this year, when it is not at all improbable, in view of the reduction in imports, that ships may have to come out either in ballast or only partly laden. As far as labour troubles are concerned, the conference convened last week by the Minister of Labour, the Hon. P. C. Webb, has left a much more hopeful atmosphere. The outlook for outward freights is less promising. No one can say for certain what the full effects of import restrictions will be, but they are admittedly designed to effect a reduction n the total volume of imports, and. as a result, the shipping companies are certain to lose business. They may not consider this prospective loss of business serious enough to justify a demand for increased freights. Judging by the number of new ships in the trade, it has in the past been reasonably profitable for the shipping companies, and they may be willing to let the present freight rates stand. This, however, is an optimistic view. An increase in the rates is by no means unlikely. Coupled with the reduction in the export meat quota, this would be a severe blow to New Zealand’s interests.