Air-Cargo Potential

Press, Volume CVI, Issue 31121, 26 July 1966, Page 1

Air-Cargo Potential

(N.Z. Press Association; AUCKLAND, July 25.

New Zealand exporters had not yet fully exploited the frequency and capacity of air-cargo services available to them, the cargo development manager of Air New Zealand, Mr J. M. Helleur, said today.

Speaking at a symposium on air cargo, he said entry to export markets in Australia, Hong Kong and the United States through air transport gave manufacturers opportunities to lower unit costs and diversify markets.

The symposium was the first of four to be held in each main centre by the Manufacturers’ Federation in association with Air New Zealand, Qantas and 8.0.A.C.

Mr Helleur said overseas trade developments were being greatly assisted bv the sneed of today’s aircraft, international airline frequencies and the freight-rate structure now possible with jet aircraft. In the 1965 financial year. JOO tons of manufactured poods were carried bv his airline and its partners. Last year the figure grew almost 150 per cent to 246 tons. On trans-Tasman routes, air C’roo had been growing at a r>te of 40 ner cent annuallv The introduction of jet aircraft to New Zealand was an enormous advance and DCRs had boosted outward cargo capacitv bv more than 100 tons weekly. His airline and its partners could now provide about 650 tons of cargo capacity between New Zealand and Aus-t’-’iia each month and some ?30 tons on Fiji and transpacific services. Surface-camo costs had increased ste’dilv and the trend w>s for further increases, while air-cargo rates continued to fall.

On a straight comparison, pir-cargo rates were higher t?zn those for surface trans-

port. However, many of the elements of shipping costs were eliminated by air freighting. Big savings occurred in these associated costs—less deterioration and pilferage in transit, less damage to packaging, a quicker return on capital and the preservation of liquidity flow. Combined with a more rapid turn-over of capital and the ability to serve markets more quickly were most important and exporters should become familiar with the “total cost concept” to arrive at a genuine assessment of air cargo.

Mr Helleur said many potential exporters had the impression that air shipment was largely confined to the need for moving emergency supplies, high-value goods and perishable commodities ilyToday, many export markets were flourishing as a result of specific commodity rates.

Exports by air from New Zealand included 70 tons of biscuits, 50 tons of fresh fish, 140 tons of strawberries and 240 tons of meat in the last year, and 20 tons of potato chips and 44 tons of carpets in the last few months.