RATES CUT BY ITALIANS

Poverty Bay Herald, Volume LXIII, Issue 18992, 17 April 1936, Page 12

RATES CUT BY ITALIANS

RED SEA FREIGHTS GOVERNMENT'S POLICY LONDON, Feb. I. Italian tramp ships, returning empty after taking war supplies to Eritrea or Somaliland, are now competing for ordinary commercial cargoes in the London freight market. Previously these vessels, after discharging their cargoes, returned to Italy in ballast. Now they are being chartered to carry goods from India and Indo-China to Europe, principally France. It is possible that the Italian Government is endeavouring to relieve its financial burden by permitting owners to earn homeward* freights for themselves, instead of bringing the ships homo empty at the Government's expense. The fact that these freights will be payable by much-needed foreign currency will appeal to the Government and owners alike.

At first merchants were reluctant to charter these vessels, largely on account of the high cost of war risks insurance on cargoes in Italian ships. Eventually the Italian owners overcame this reluctance by undercutting the market rates to an even greater extent than the actual cost of the insurance.

Italian ships have now been chartered by both British and French interests for the shipment of manganese ore and ground nuts from India, and rice from Indo-China.

It is feared by British and other foreign owners that any further extension of Italian competition in the Eastern freight market may have a very disturbing effect on freight rates, as the Italians, in their keen desire for foreign currency, may be apt to disregard normal commercial considerations.