SHIPPING FREIGHTS

Taranaki Daily News, 11 March 1933, Page 5

SHIPPING FREIGHTS

NEW AGREEMENT PENDING. DELEGATES TO VISIT LONDON. The present freight agreement between New Zealand produce boards and the shipping companies covering refrigerated cargo will expire on August 31, and it is expected that efforts will be made to obtain a renewal on a lower basis. Mr. D. Jones, chairman of the Meat. Producers’ Board, and Mr. W. A. lorns, chairman of the Dairy Produce Board, will leave for London shortly to negotiate a new contract with the shipping companies. When the existing agreement was made exporters obtained a concession of 2) per cent and the rates were fixed as follows:—Mutton, .929 d per lb.; Lambs, 1.09 d; lambs over 421 b., .929 d beef, including boneless beef, .744 d pork, .744 d veal, including boneless, .744 d frozen sundries, ,637 d legs, shoulders, and pieces of mutton and lamb, .956 d bacon in crates, ,85d. These rates were actually 15 per cent, below those ruling in the first period of the prior agreement, but that agreement provided a scaling down process during operation. The agreement now in force was for definite rates to operate over the whole period. The rates for butter under the present agreement were 4s a box, less 15 per cent, or 3s 4.8 d, and for cheese, 7-8 d a lb., less 15 per cent, or .74375 d. The 10 per cent difference in exchange formerly operating was carried by the shipping companies, but the current agreement provided that the rates should be revised in the event of a rise in the exchange rate. Consequently, for the past month an additional 15 per cent has been added to the rates quoted. Advice was received yesterday that the addition would be 13 2-3 per cent as from March 1. Those in touch with the export trade rlaim that there is a good case for a reduction in freight charges when a new contract is entered into after August. It is pointed out that loading charges are less and operating costs have fallen over the period of three years. However, to cope with the expansion in the export trade from New Zealand the shipping companies have been forced to despatch from England more vessels than the Dominion’s import trade warranted. It is claimed that this year 50 vessels will reach New Zealand in ballast. A further restriction in imports, which is possible owing to the higher exchange rate, will only serve to intensify the one-way cargo trend. Australia is also asking for a reduction in freight charges and export interests there will shortly open negotiations with the shipping companies. The Commonwealth three-year agreement will expire on July L