AN EXPORT ANOMALY

Poverty Bay Herald, Volume LII, Issue 17154, 2 October 1926, Page 18

AN EXPORT ANOMALY

BRITISH UARS FOR NEW ZEALAND. AMERICA’S ADVANTAGE. LONDON, August 12. “At this time,” says the Motor Trader, “when British exporters are straining every nerve in the factories at Home and in the selling fields abroad to meet American competition in our Dominions markets, it seems rather remarkable that they should be severely handicapped in the matter qf freight rates. The particular instance that iias come before our notice concerns the charges between New Zealand and London and New York respectively. On cases up to two tons weight American shippers quote 13.50 dollars per cubic (on measurement to both Australian and New Zealand ports. This is about 56s at the present rate of exchange. From London the freight rates is 55s to Australia (the same as the New York quotation), and 70s to New Zealand. Now, here is a discrepancy in the. New Zealand rates of fourteen or fifteen shillings a cubic ton. It means that if we take a representative British ear, such as the Austin Twelve, and compare its freight charges from London with those of a similar American car from New York, the Austin costs at least £8 more to laud in New Zealand than the American. We are not in possession of the f.o.b. trade prices of the Austin Twelve, but it is fair to estimate that this £8 represents a margin of about 3 per cent., the securing of which would be bailed with gratification either by the Homo factory or by the agent abroad, and would lie almost equally acceptable to the eventual retail purchaser in New Zealand. APPEAL TO THE SHIPPING COMPANIES. “To whomsoever of the three it went it would appreciably assist the New Zealand trade in British cars. It. seems worth while, therefore, for manufacturers to investigate the matter with a view to enlisting the interest of the steamship companies concerned with the ultimate object of persuading them to fall into line with their United States contemporaries. It is only fair to state that the London-New Zealand rate.is the lowest official quotation to New Zealand from any European port. The rate Antwerp-New Zealand is 80s, with surcharges, and Genoa-New Zealand 85s, so that ns far as our Continental rivals are concerned, we are in no unfavorable position. ‘•All these rates are fixed in conference by tin' English shipping lines operating over the routes concerned. It seems to he possible, therefore, to troul with the shin owners only as a collective body, which again is only likely to he influenced by business consideration either at present or future significance. In other words, we expect the confer cnee to require indications of increasing cargoes before it. is likely to con sider the granting of present, rate con cessions. “There seems to be an excellent op portunity for the Association of British Motor Manufacturers, to inquire of- il interested members how far a more »r less fortuitous reduction of £8 or so would affect the trend of shipments to New Zealand, and if it were found to promise a. reasonably substantial rate of progress tlioi'o would seem to be a clear case for a collective appeal to tlie shipping companies. In any case, it seems to us an anomolv that England, in her supremacy as the world’s carrier of seaborne traffic, should handicap an important British industry in its efforts to secure a British market.”