EXCHANGE PROBLEM

Taranaki Daily News, 11 August 1932, Page 15

EXCHANGE PROBLEM

EFFECT ON FREIGHT RATES. SHIPOWNERS & EXPORT BOARDS. An important arrangement has been come to between the ehipping companies and the Meat and Dairy Boards, in regard to freight rates and exchange. The Overseas Shipowners’ Committee recently asked the Dairy Board to consider tire question. The shipowners drew attention to the fact that under the existing contract the dairy export shipping freights were paid in New Zealand, and this in effect involved the companies in a loss of approximately 10 per cent, in remitting to London the proceeds of freight-earnings paid in New Zealand in Now Zealand currency. Hitherto the companies had born this charge, but they reminded the board that they could not continue to absorb this charge indefinitely or to face an advance in the exchange rate. They therefore requested that the position should be met if circumstances required. The Dairy Board resolved that a committee, consisting of Messrs. Fulton, Grounds, Corrigan and lorns (chairman) should be appointed to meet the shipowners* representatives, in conjunction with a committee of the Meat Board. Power to act was accorded the committec. Subsequently the Dairy _ and Meat Boards met the representatives of the shipping companies and the following understanding was reached: — (1) For all shipments on and after September 1, 1932, there shall be paid in addition to the contract rate. of freight a rate of exchange on the freight itself equal to any increase in the telegraphic rate of exchange over and above the present telegraphic rate of 10 per cent. That is to say, the shipping companies will continue to absorb the present rate of 10 per cent. (2) Where a steamer is loading at August 31 at any particular port, and portion of the produce is loaded prior to the. end of August and portion after that date, any increased rate of freight, by reason of an increase in exchange taking place in August, which becomes chargeable on that portion loaded after August 31, shall be spread over the whole of the shipment from that particular port on that steamer. (3) On all. shipments other than those referred to in paragraph (2) the rate of exchange which shall be applicable shall be tho rate ruling on the date on which a steamer commences loading refrigerated cargo at any one port. (4) The rate of exchange for the purpose of assessing the freight shall be that published by the associated bank# from time to time.