COSTLY TIMBER

Wanganui Herald, Volume LIII, Issue 160735, 23 August 1920, Page 9

COSTLY TIMBER

BRITISH MERCHANTS AND A SINGLE BUYER. LONDON, July 5. The high cost of timber in this country is due to the exorbitant prices demanded by the Scandinavian exporters. British timber merchants are now debating what action they shall take to obtain cheaper supplies from abroad. Timber has increase din price so greatly since the war ended that our importers are hesitating over making further purchases. In 1914 Swedish deals and battens were obtainable f.o.b. at about £ll 10s per standard of 165 cubic feet for deals and £9 10s per standard for battens. When all purchasing was done by the Government buyer timber rose to about double these prices. Since the Government buying ceased deals have risen to about £42 and battens to about £32 per standard f.o.b. These rates do not satisfy the Swedish exporters, who arc asking still higher prices for future deliveries. British merchants regard these demands as impossible, and are seriously considering the establishment of a single purchasing committe to do the whole of the buying for British importing firms. They realise that the foreign shippers are strongly organised, but think that a co-operative effort on the part of importers in this country will be successful in bringing prices down. Owing to the continually rising cost of construction many orders for new ships axe being withdrawn. Shipyards do not make fixed price contracts now, as it is impossible to foresee what costs will be at any given period in the future. Therefore, new ships are built on a system under which the person who gives the order has to pay all charges for labour and material, plus a percentage to the building firm. Usually an estimate is given founded upon the prices ruling when the order is placed; but this is simply a guide to probable cost. Wages and materials, have risen to such an extent that owners now find they may have to pay half as much again for a ship as they had expected. In view of falling freights and heavier operating charges they cannot afford to do this. They see' no prospect of ever being able to work these very expensive vessels at a profit, and are therefore withdrawing the orders to build them whenever possible. Shipyards have so much work in hand that they will not immediately feel any ill effect from these cancellations.