A FREIGHT WAR.

Otago Daily Times, Issue 20501, 31 August 1928, Page 10

A FREIGHT WAR.

CANADIAN ATLANTIC PORTS

DRASTIC REDUCTION OF CHARGES.

(Special to Daily Times.) AUCKLAND, August 30. A piquant situation has arisen in world shipping through the declaration of a freight war between the New Zealand Shipping Company and the Canadian National Steamships. Both companies are fighting hard to retain the growing trade between the Atlantic Canadian ports and New Zealand, between which countries both lines run direct monthly cargo services, and the rate reductions are drastic enough to render the services unpayable. Whereas the previous scale ranged from 3s to £5 a ton, soaring to £l2 per ton for dangerous goods, the New Zealand Shipping Company has now declared a flat rate of £1 a ton for r.ll classes of goods, and the Canadian Steamships has followed suit. It is stated that the cut is so drastic that one side or the othei must sooner or later admit defeat.

The new rate applies only to cargo from Canadian Atlantic ports, the Pacificseaboard not being involved. One result of the freight war will be that Canadian goods and United States manufactures shipped from Canadian Atlantic ports can he landed in New Zealand at a lower cost than similar goods imported from England. It is stated that Auckland importers arc already taking advantage of the low freights. Some of the articles which will come into Now Zealand at much lower cost owing to the freight war are motor cars, tyres, motor accessories, pianos, wire netting, and iron and steel products.