WOOL FREIGHTS.

Timaru Herald, Volume XIIC, Issue 13655, 25 July 1908, Page 3

WOOL FREIGHTS.

AUSTRALIA- TO LONDON. PROPOSED INCREASE. The- Melbourne "Argus" of July 11 pubhsjues tlw following jii a, jnominent position iu its columns :

' I'.» question of ocean freights on-wool •s one which concerns every pastoralist, whether he sells bis wool in Melbourne i? in London. The direct shipper, of const, must feel any increase in freights imnn-Uialely, but even the price of wool --■•il hern is affected by any alteration in lb • cost of transport. i<or sorne time past there has been a tendency for freights to harden, bm. the ruling prices front Melbourne to London, 9-16 d per lb, for greasy, and 11-16 d per lb, for scoured, have been in force for some time.: Shirjping firms, however, will not quote more than a month ahead, and there js a feeling of unrest and oucertainty. This has been increased by a threat that rates from Melbourne to London are to be increased iu September.

Wool-broking firms are alive to the situation, but they t are at a loss to know what to do. Those of them who combine wool-broking with shipping agency business are iu a dilemma. They are being forced on by the combined shipping companies for increased freights, and, at the same time, are bting blamed by their \r<istoralist constituents for not securing reductions. A manager of one of those firms said yesterday:—"We have to do what we are told by the people who control our shipping companies, and cannoti obey the demands of the producers." When it is remembered that the rates used to ha as lo'w as - 4 d per lb for greasy, and |-d per lb for scoured, it will be. seen that the present prices was a very great! increase. Insurance rates have recently been largely increased for wool shipped by sailing vessels, so that tlie cost per bale to the shipper is now a serious matter. Some years ago the freighti market was open, and the shipper could choose the steamer from whose agents he could get the best terms. Failing a freight that he considered' fair, he still had the sailing vessel to fall back on, but this is greatly changed, .jrhere. are comparatively, few sailing ships in the trade now, and'the increase in insurance by them keeps them more out of the competition with tho. steamer than ever. ■-.'■■■:."■

Inquiries at the 'following wool-broking houses yesterday revealed'-..the'fact'that they were all watching the tiend of affairs very closely. They realise' that. the shipping companies hold a very strong position, and are practically masters of the situation, for there is not a line of steamers of any "importance, that has not fallen 'in with the : rate of freight ruling all round. They' are awaitinge developments, which may come any.: day. , .There is an air of reticence all,round, t!he general feeling being that, as' tersely expressed by

one manager, "We are for Iho producer every'time, but I am not going out to the front in this fight ; let some of the others have a turn," The shipping companies are silent on the subject, their answer practically being, "We have only to act as we are directed."

POSITION IN SOUTH CANTERBURY.

Whether or not line fears of an increase in the freights on wool, as outlined above, are applicable to the New Zealand trade and particularly to South Canterbury, the existence of whose extensive trade practically depends on sheep, formed a subject for enquiry by a " Herald " reporter; and when merchants to whom the ''Argus" article was shown stated that they had heard nothing whatever in connection with iJie matter it bscame apparent that, for ihe present at anyrate, pastoralists and buyers have no fear of any immediate riso in freights. Enquiries in various directions elicited the information tihat freights from New Zealand are lower than from Australia, ranging for the port of Timaru from 7-16 d per lb for greasy wool, >}d for slipe and 9-16 d for scourtd. At the beginning of the season freights from Timaru wero l-16d higher, but the loading of a sailing vessel, tlie Concordia, here and the sending of wool to Wellington for transshipment to other sailers brought the rates down; but; whether the nextl season will open at the old rates again is a speculation and cannot be safely predicted. One of the largest shippers of wool from this port informed the reporter that though the shipping companies trading to New Zealand have little opposition 'they' have each a large tonnage and inusibfillup their holds if possible. At the present! rates wool is the most payable portion of their freights and they -are keen in- getting all the cargo they can and that is why they watch the casual sailing-ship rates, which have to be cut fine for the sailers to get business. The steamers fix their own rates accordingly. The merchant whose remarks are here quoted thought that even the old rates, l-16d above those at present ruling, were very fair; and as he had heard no complaints he tottk it that all those interested were very well satisfied with tlie present situation. But as for the fears expressed in Melbourne he confidently hoped that the same fears would nob be realised here. In any case he had heard nothing of the subject; besides it was too early to make any predictions.