COAL FREIGHTS

Southland Times, Issue 19517, 17 May 1922, Page 5

COAL FREIGHTS

A REDUCTION EXPECTED. (Special to the Times.) CHRISTCHURCH, l6. An impression that before very long shipping freights from the West Coast will be reduced exists in the coal trade. If this anticipated reduction takes place it doubt lee will lead to a further decrease in prices of coal. Possibly this impression regarding freights is based on more than sur-_ raise. Dealers in coal contended to a reporter that the shipping companies should be able to reduce running costs, firstly through being in a position to obtain cheaper hunker coal, and secondly, through the reduction in the bonus. So far only two leading classes of hard coal have fallen in price as the result of the reduction in the bonus. There is a tendency just now amongst merchants to do a little undercutting, so that further developments in the matter of values are not improbable. In the meantime anticipations as to a possible reduction of shipping freights have led to a certain amount of surmise on the question of railway freights, These railway charges were increased at the time when the Government was paying as much as 50s a ton as shipping freight on its shipments of coal from Newcastle. It is now drawing coal from Australia at a freight of 20s per ton.