THE MOTOR SITUATION.

New Zealand Herald, Volume LIII, Issue 16202, 12 April 1916, Page 5

THE MOTOR SITUATION.

EFFECTS OF RISING FREIGHTS.

In* an interview with tho managing director of tho Colonial Motor Co., Ltd., Homo interesting information was obtained concerning tho influonce of tho freight problem in regard to tho importation of motOr-cars into New Zealand.

"From what I can see," said Mr. C. C. Larmour, " it is highly probable that in the near future the prohibitive cost of freight will debar the importation of motor-cars altogether. Notwithstanding the fact that the Ford takes less bulk than the average car, the shipping charges aie now almost beyond reason; and this despite the fact that owing to our volume of business we are ablo to contract for larjjo reservations. To show you tho position, read this letter, which has just arrived from tho Ford Motor Company of Canada, Ltd., whence we obtain all our supplies." A few excerpts from the communication in question will give leaders somo idea of the position. ■ Writing on February 29, the Ford Motor Company of Canada, Ltd., states: — "As you possibly know, our contract with the shipping company expired on December 31 last. Confronted with the necessity of going into the open market for space, we immediately got to work. We commenced to bid for space on steamers out of the Pacific Coast ports of Vancouver, Seattle. Tacoma, and San Francisco, and on the Atlantic Const out of tho Ports of New York, Philadelphia, Portland, Montreal, Halifax, and St. John. Naturally, these inquiries took time to bear fruit-, but we developed some splendid connections.

"Right from tho start rates jumped from quotation to quotation. At the outset we were able to ship to Now York and ship through cargoes for the steamers AraJuen, Dcngarra, and C'anargo. Tho quotation for the first was 75 cents per cubic foot, for the second 1 dollar 3 cents, for the last 1 dollar per cubic foot. Formerly the rate was about 25 cents per cubic foot.

"The next difficulty was the absoluto ( embargo placed on all shipments to New York for export, due to congestion in that port. It will interest you to know that at present there are about 40,000 railroad cars tied up in and around New York. Munitions of war consigned to the allied Governments havo congested terminal facilities to an almost unbelievable extent. Tho railway companies are practically helpless in!the matter. To crown all, the lighterage service from pier to ship side in New York has proved inadequate, and cargoes are not able to bo loaded with sufficient facility to relieve the congestion. . " This explains why some of your cargoes that wo had arranged left short-shipped. It was impossible to get cars to ship side. Wo consider ourselves extremely fortunate, comparing the number of cars we got out of the Port of New York under conditions such as they were with the few shipped by other concerns. _ As the British Government has requisitioned about 75 per cent, of all space, them is no certainty of any cargo until the boat has actually left. As a matter of -fact, there is practically nothing offering out of tlifi Port, of New' York for New Zealand or Australian shipments. " As there was no space available .out of the Canadian Atlantic ports, we were forced to turn to the Pacific Coast, but the sailings out of the Port of Vancouver are extremely limited. The lack of railroad equipment has not eased tho situation : n any way. We obtained spacn for a few care by the Weril ee for Sydney alone, and we had to pay 18 d jllars a ton. Our next engagement for a limited number for Sydney and Wellington jumped to ?TJ dollars per ton. Outside of this very small number, wo have been absolutely unable to obtain any further space out of Vancouver. " Out of San Francisco a ..raited number of cars were shipped at 20 dollars per ton. Tho quotations for the steamers Kurow and Waikawa then jur.ped to *5 dollars, and wo only obtained these by engaging well in advance. The prospects for March and succeeding months are not bright, and wo think we ha* done well to secure a contract out of San Francisco for April and May sailing at 474 dollars. Almost over night tho freight jumped to 52i dollars, and wo know of one concern offering 574 dollars, but there was no extra space available even at this figure. One of our shipping connections goes so far as to say that the next quotations will be between 75 and 100 dollars per cubic ton "Boiled down, the position is that freights have more than trebled, and there is every prospect that tho cost will be increased four-fold, with a good chance of no space being available at any prico." "Fortunately," intimated Mr. Lam,our, "we anticipated this situation to some extent, and wo now -have in New Zealand and on the water 729 Ford cars. While theso were shipped at, high rates—wo had to pay railage from Ford, Ontario, to San Francisco in addition are still able to sell at a low price. As long as the present stocks last, we offer tho fiveseatcr touring car at £220, and the twoseater runabout at £205, both f.o.b. Wellington. But it certainly seems as if wo shall not be able to obtain supplies at ail if the present conditions continue."