REVERSION TO CANAL ROUTE

Timaru Herald, Volume CXXXVII, Issue 19665, 6 December 1933, Page 4

REVERSION TO CANAL ROUTE

FALL IN DOLLAR RATE THE CAUSE. WELLINGTON. December 4 For more than two years now practically all the regular cargo vessel* leaving New Zealand for England have proceeded via Cape Horn and a number of vessels both laden and in ballpst have al*o come out to New Zealand via the Cape of Good Hope. In both cases the reason was the same, to avoid paying Panama Canal dues in depreciated currency. After England went off the gold standard in 1931, sterling fell considerably In terms of the American dollar and the cost of Panama Canal dues Increased enormously. Recently with the fall In the American dollar, sterling has risen above parity in V prnw of the dollar. The tendAicy is now for cargo vessels to use Canal once again. The first vessel to be diverted fforn • the Port Huon. which left Auckland last Thurdav The Blue Star molarship Tuscan Star. which left Wellington on Saturday for London. Is fclso proceeding via the Canal, and notfjthe route of the steamer Cumberland to leave Auckland next Thursday, haa been changed from via Cape Horn to via the Canal The Caj>e Horn riute Home . .ibout 500 miles longer tf-.nn that via the Panama Canal, and |essrla proceeding that way take from two to three da\ ■ more. Coming out via the Cape of Good Hope means aftout a week’s extra steaming.