FREIGHT SURCHARGE.

Waikato Times, Volume 108, Issue 18164, 31 October 1930, Page 10

FREIGHT SURCHARGE.

EXCHANGE RATES EFFECT. It is officially announced by the New Zealand Oversea Shipowners’ Committee that shipping freights paid in New Zealand on wool and general cargo, as from November 1, will be subject to ah additional charge of 5 per cent., in order to cover the present rates of exchange, New Zealand or London. , The surcharge will not apply to frozen meat, dairy produce, or fruit, but will be levied on wool and all other classes 'of “general" cargo in respect of which freight is paid in New Zealand. The shipping freight rates on frozen meat and.dairy produce are, of course, governed by the new contract between the Meat and Dairy Boards and the shipping companies which took effect on September 1. This contract provided for a reduction of 2J per cent., which brought the new rates down to 15 per cent, off the rates obtaining in respect to meat and dairy produce for the 1924-25 season. The period of the contract is three years, and the 2-i per cent, reduction represents a further saving to meat producers of approximately £50,000 per se'ason and to dairy producers of about £35,000 per season. ■lt is stated that the 5 per cent, surcharge on export' freights paid on New Zealand will affect a comparatively small number of New Zealand exporters. Usually the bulk <: 4f the freights are paid in London. It is said that recently English importers of wool and other general cargo from New Zealand have been taking advantage of the favourable selling rates, London on New Zealand, to ' remit freights to the Dominion. Most shipping companies have-been under the obligation to remit these freights to head offices in London at the adverse exchange rate. Position Similar to Australian. The position is much the same in

respect to Australia, where an increase was recently -made by the Australian Overseas Shipping Representatives’ Association in order to meet the adverse Australian exchange position. Freight on the greater part of the wool and general cargo exported from Australia was paid at destination, -and will therefore not be affected by the adverse exchange, but -shipowners’ costs on refrigerated cargo were substantially increased. Freight on a very small proportion of the wool and general cargo was paid at port of shipment, and a surcharge of 0 per cent, was made. Subsequently an agreement was reached between oversea shipowners and meat exporting interests on the surcharge on frozen meat exports. The charge will be 3 per cent, until June 30, 1931, instead of the 6 -to 7 per cent, originally proposed. It was also agreed, after consultation between the shipping representatives and exporters of dairy produce," that the same rate shall apply to shipments of' butter and cheese. Having contracted with exporters of frozen meat and dairy products, freight on which has always been prepaid in Australia, to make a surcharge of only 3 per cent, to compensate for the adverse exchange, .oversea shipowners state that they will be heavily hit by the increased rate between Australia and London. The New Zealand Overseas Shipowners’ Committee announces that insofar as the lines it represents are concerned, all freight rates and rebates on outward shipments will continue on the same basis, and that any statement to the contrary will be inaccurate. This announcement is made with the desire of -removing any misapprehension that may have arisen through representations made to some importing firm§, to the effect that if shipments are put through certain' channels considerable savings in freights can be made. The Overseas Shipowners’ Committee slates that all shipments arc on the same footing, no allowances are made to any forwarding agency, and no discrimination is made on shipments of goods to New Zeaalnd.