LOWER FREIGHTS

Otago Daily Times, Issue 21976, 10 June 1933, Page 3

LOWER FREIGHTS

SHIPPING COMPANY’S PROPOSALS [Contributed.] Probably the most important announcement in recent months was the information cabled from London that the Blue Star Line desired to operate a regular shipping service between New Zealand and Great Britain. This company, an entirely British-owned and British-operated concern, stated that if a definite share of the carriage of the dairy and meat exports could be secured from the respective control boards, it would be prepared to guarantee the despatch of one fast modern ship per month and substantial reductions in freight charges on both inward and outward goods.

The company’s representative, when asked for information, confirmed the report and stated that the facilities possessed by his company for the carrying of frozen beef, mutton, and lamb, dairy produce and fruit made it possible for them to offer the reductions of freight promised, that in respect of wool being perhaps the most important. The company held a high reputation for prompt, efficient handling of produce of this nature, and in addition their vessels were specially equipped for the transport of chilled meat, a branch of the meat industry which it would undoubtedly be in the interests of the Dominion to develop. He mentioned that considerable criticism had been levelled at the .Blue Star proposals, but with dairy produce and wool at their present low level, it, seemed that some relief from high freight charges should be offered to the fanners generally, and it seemed unlikely that this relief would be forthcoming without the introduction of competition. Since the war period there have been only slight reductions in the more important items of the Dominion’s export trade. The Poverty Bay Herald also threw some valuable sidelights on the issue in a recent leading article wherein they stated: “ If the new contracts were divided between the two competing combines, ’there would be a constant stimulus to more rapid delivery, and the prospect of a renewal of the contracts would provide an incentive to greater efficiency in the handling of produce. It is possible, therefore, that .much good might result from the infusion of new blood into the New Zealand shipping trade, mtJfe particularly since the rival companies are of such a substantial nature that the development is not likely to be merely temporary.” That there exists ample room for additional shipping facilities seems to be generally accepted as statistics show a steadily increasing quantity of exports over the past few years. Already twice this season freezing works have been forced to close down due to an accumulation of meat that could not be shipped, and it is possible that further dislocations will occur. These delays have taken place in spite of the fact that those companies who are at present engaged in the trade have chartered additional steamers, They now report that they are building new vessels in order to handle the ever-increasing trade. The advantages of competition must be obvious to anyone. At no time in the history of the Dominion has it been more necessary than it now is to reduce all overhead charges. The burden of freights is felt by every individual, be he exporter, importer, or private citizen—-every possible avenue which may lead to a relief from that burden should be thoroughly and carefully explored.