The Daily News SATURDAY, MAY 27, 1933. SHIPPING COMPETITION.

Taranaki Daily News, 27 May 1933, Page 6

The Daily News

SATURDAY, MAY 27, 1933. SHIPPING COMPETITION.

OFFICES: NEW PLYMOUTH, Corrie Street STRATFORD, Broadway. HAWERA, High Street

The statement made by the Dominion President of the New Zealand Farmers’ Union, Mr. W. J. Polson, M.P., in regard to a new element in shipping competition is of much interest to primary producers. Mr. Polson stated that the Blue Star Line, an organisation outside the “Conference” of shipping lines with whom the last contract for the transport of refrigerated cargo was made, had made a definite request for a share of the New Zealand traffic. The Blue Star Line had intimated that it was prepared to offer reduction in freights, and the competition happens at a very suitable time. The new competitor is one of the organisations controlled by Vestey Bros., probably the largest amalgamation of meat, storage and distribution agencies in London. Hitherto the ships of the Blue Star Line have been engaged chiefly in the transport of meat from South America, particularly Brazil and Argentina, where the Vestey organisations have large interests. The standing of the firm is sufficient to set at rest any doubt whether the Blue Star Line would be capable of carrying out any contract made, and the fact that its vessels have been designed for the carriage of chilled as well as frozen meat might have a further appeal to New Zealand shippers who have just begun experiments in the transport of chilled beef to Britain in commercial quantities. As is generally known, representatives of the meat and dairy produce boards are now conducting negotiations for transport for another term of years, and owing to the reduction in imports necessitating a number of outward voyages in ballast it appeared at least probable that a higher freight rate might be insisted upon by the Shipping Conference. The offer of the Blue Star Line may prove a healthy corrective to such a demand, and may lead to competition in the better and quicker handling of produce which should also be to the benefit of New Zealand exporters. No doubt full consideration will be given to the excellent service rendered by the shipping Conference during the period covered by the expiring contract, and so far as the transport of meat is concerned there may be some doubt whether support of a shipping service owned by a trade rival is altogether wise. Those are matters to be left to the representatives of the meat and dairy produce boards to decide. The broad principle that competition is healthy for trade applies to shipping as well as to other industries, and the New Zealand primary producer needs all the assistance lowered freights can provide. The new competitor for transport of refrigerated cargo is a British concern, and the fact that it has large interests in New Zealand is likely to facilitate rather than retard extension of the services to wayside ports. It has been said that in any new contract shipowners would insist upon the concentration of loading at fewer ports in New Zealand. There is much? that can be said in favour of this. On the other hand there are other questions involved besides the cost of transport or even the deterioration of produce likely to arise from transhipment from coastal to oversea vessels. In this regard also the advent of a new competitor will strengthen the hands of the New Zealand negotiators, and may prove a means of reducing the cost of marketing the Dominion’s exports.