SHIPPING WOOL TO COST MORE

Press, Volume CVI, Issue 31113, 16 July 1966, Page 1

SHIPPING WOOL TO COST MORE

7%% Rise Extended To Dry Cargo

(New Zealand Press Association! WELLINGTON, July 15. An increase of 7| per cent on present rates of freight for wool, sheepskins and general export cargo to take effect from October, 1966, was announced today by the New Zealand European Shipping Association, Wellington.

This increase is the same as recently announced as applying to meat, dairy produce and fruit. The association said that it was very much regretted that an increase had to be made. The main reasons were substantially higher costs of handling cargo, both in New Zealand and in Britain and Europe, together with rises in seamen’s pay—in other words, a continuation of inflationary trends, which continually pushed up operating costs.

The 10 shipping companies which comprised the New Zealand European Shipping Association would continue to explore every avenue which would lead to greater efficiency in operating and reduce the turnround time of vessels.

The announcement was after a meeting in Wellington yesterday between the shipping lines and representatives

of wool shippers and of the wool industry. The increase amounts to about one farthing per lb of greasy wool. Producers’ Cost Informed circles say that this season’s wool production will amount to between 685,000,000 and 690,000.000 lb. The chairman of the Wool Board (Mr J. Acland) said today the increase appeared likely to add about £500,000 to the annual cost of shipping

New Zealand wool. It was the fourth successive increase. Since 1956, the freight bill had increased 35 per cent. It was ultimately borne by the New Zealand sheepfarmer, whose costs of production over that period had risen steeply. The price the grower received for his wool, however, had not risen. It was 46d in 1956 and was 41$d this year. On the average farm, producing 40 bales of wool, the cost of shipping, with the latest increase, was £l9l 10s —an increase of £l2 in one year.

Mr Acland said the rise would handicap New Zealand wool in competition in the markets of the world. The Wool Board was seriously concerned at the trend but he declined to say what action by the board was contemplated. The Minister of Overseas Trade (Mr Marshall) told Parliament today he was satisfied the recent 7| per cent increase in shipping freight rates agreed between the New Zealand producer boards and the four British shipowners was the “best that could be expected” in the circumstances.