CARGO CONTRACTS

New Zealand Herald, Volume LXX, Issue 21583, 30 August 1933, Page 10

CARGO CONTRACTS

PRODUCE FOB BBITAIN \ REDUCTION IN RATES NEW TERMS ON FRIDAY BLUE STAR LINE TO SHARE [by telegraph—press association] "WELLINGTON. Tuesday Cabled qdvice of the main terms of the now refrigerated cargo freight rate contracts with shipping companies for tho transport of produce from New Zealand to Britain was received to-day by the Dairy Eroduce Board and the Meat Producers' Board. No official statement regarding the terms was available to-day, as cablegrams had to be sent to London for the confirmation of some figures, lfc is authoritatively stated, however, that the new freight rates, which will operate from Friday, represent a reduction of approximately 7 per cent on the present rates; In the case of butter the rate which * is now 4s a box, less 15 per cent, will be 4s less 21 per cent. It is estimated that the 'annual saving on dairy produce represented by the new rates will bo approximately £124,000. The new contract carries • other provisions relating to the rate of exchange New Zealand on Loudon. The produce hoards will carry, as at present, the full cost over 10 per cent, of remitting funds to',London, the shipping companies carrying 10 per cent. In the new contracts, however, it is understood f there is a provision that if the exchange rate falls below 10 per cent the cost' will be borne by the boards and shipping companies in a certain definite proportion. The new contracts provide that the Blue Star Line will have a share, which is stated to be 10 per cent. It is understood the Blue Star Line will shortly open offices in Wellington and other ports in New Zealand. The first homeward loading from the Dominion by the line will be made by the latfge ; motor-ship Tuscan Star in November.

The Blue Star Lino motor-ship Tuscan Star, which it is understood is to carry the line's first Homeward cargo of meat from the Dominion in November, was built in 1930. The vessel is of 11,449 tons gross register, 471 feet in length, and 68 feet 3 inches in breadth, , with 35 feet depth of hold. Specially designed and built for the Argentine chilled beef trade, the Tuscan Star is one of the' largest refrigerated cargo carriers afloat, and has a capacity of 180,000 freight carcases. The ship has a speed of over 16 knots, and is one of the 30 ships owned by the Blue Star * Line and Union Cold Storage Company.