COMING FREIGHT WARP

New Zealand Times, Volume XLVII, Issue 10992, 30 August 1921, Page 5

COMING FREIGHT WARP

MERCHANT’S SUCCESTIBN

HIGH FREIGHTS DEPRECIATED BY SHIPPING MANAGER. SMALL CARGOES: HIGH COSTS. A leading merchant informed a “Times” reporter yesterday that there was a strong feeling amongst merchants that freights from the United Kingdom, Continent of Europe, and America would come down with a run sooner or later. This, however, could not be brought about until the cost of running ships showed a substantial reduction on the present figures. There were more than sufficient ships available in Great Britain, and American ports than were required to meet the export trade from those countries, an<b it was fully anticipated that a freight war would take place. FREIGHTS AND PRICES. , Freightage was so high that it was seriously affecting the value of goods and, in consequence, purchases were only of a meagre nature compared, with pre-war days. The manufactured cost was also expected to drop lower than present-day rates, and in face of those anticipations merchants consider it would he unwise to carry heavy stocks. There were some noticeable declines in prices, but they were still a long way off those of 11)14. As an example, he mentioned that Caiman’s starch, which was >as high as £ll3 per ton, had dropped to £57, but the price of mustard had not receded. Patent groats and barley had come back considerably, as had a few other lines, and a slight reduction might be looked for in canned goods, as tin plate (I. C. Coke) had dropped from 83s to 33s per owt. Prior to the war, canned fruit was selling retail from lOd to Is, and to-day the Tetail price is from Is 6d to 3s per tin. IF CARGOES WERE PLENTIFUL. The suggestion that a freight War was possible was submitted to the general manager of one of the branches of a large shipping oompany, and that gentleman said that it was generally known that there was a plethora of Shipping tannage idle dn Great Britain and America. It was possible, he added, that if cargoes became plentiful there would probably be a considerable amount of competition, and aa a consequence freights would come down but he did not think that it would apply to ships, trading to the Domin- 1 ion.

The vessels engaged in the New Zealand trade were specially-constructed vessels —that was to say, insulated for carrying frozen meat. For a ship to come to New Zealand without the prospect of a backward freight would be a losing proposition, even when freights were high, and would b° much more so when freights were low. For the past two years there had 'been very little freight offering in Great Britain, and ships had arrived in New Zealand with their , holds partially empty. FREIGHTS MIGHT FADE. It was not the desire, or in the interests of the shipping companies, as well as that of the importers or exporters, for freights to be high, but under the oircumstapces that obtained at present it was not possible to reduce them, on account of the extremely high cast of running ships. A meeting’ of shipping companies is, however, to take place in January next to see if it is possible to reduce freights, and, if the cost of running ships has declined by then, there is no doubt that a reduction will be made.