THE WOOL FREIGHT RATES.

Dominion, Volume 6, Issue 1562, 4 October 1912, Page 5

THE WOOL FREIGHT RATES.

HARKED INCREASES. It litul been generally understood (hat tlio freight on wool from .New Zealand ports to London was about to. bo raised by the various shipping companies trading to tlioso shore*,' but coniirnialion regarding this was not forthcoming until yesterday. Inquiries made at the various shipping offices in Wellington elicited the information that the freight on greasy wool had been raised from fi-Hilhs of a penny per lb. to 5-Bths of u penny par II). On other classes such as washed .and slipp, 11-IGil. and 3d. respectively will be charged. The rotes which ruled for the greater port of lnr'it season were just half the above quotations. Shipowners' representatives in Wellington stated that the increased rate of freight is to take effect at once on all lines of steamers. The season is generally supposed to have commenced about the end of October or the. beginning of November, and the largest shipments of wool generally leave New Zealand about Christmas time for the January sales. The rito in freight rates throughout tho world was freely commented upon yesterday, and some opinions were sought: as to the cause. It was generally conceded that (hero is n want of tonnage-, and the class of steamer known as the "tramp" is reaping a rich harvest in freights at the present time. Sailing vessels arc also making h haul in this direction. It is said that ■then) arc not enough bottoms afloat to take the freights offering, and this is especially noticeable in Australia. Recent charters huvo been abnormally high, and even sailers have been quoted at having boon chartered at 30s. to 355., and even 4Cs. for wheat cargoes for the run to the United Kingdom or the Continent. Tho rato for grain from Now Zealand has been 255., and it is understood that this is to be raised to 30s. This statement was not surprising to shipping folk in Wellington, considering the rates ruling in Australia at present. All list wool season the rate' for greasy classes per lb. was 11-lGd. from Australia, wherws the New Zealand rate, as before stated, was S-llid. It is said that the Australian wool rato will be increased this season, but by how much it is impossible to say. . .... The shortage of tonnage is becoming more acute. On the Pacific Coast rates are three limes as high as usual oil some chartered vessels, and the consensus of opinion -is that a further upward soar is not unlikely; indeed, there is no knowing Just-what will happen, and (ho «amc is the ease with wheat fixtures also. The question might well be asked: What is the cause of this shortage of tonnage? One answer is that the owners of the onco familiar old tramp steamers are cither converting them into oil tankers or else replacing them with this newer elnss of vessel. Shipbuilders at Homo and'.abrpad arc simply overwhelmed' with orders for oil tankers. Three years ago the contract price per ton for a 7000-ton vessel was from £7 to <E8 on the dead-weight capacity, whilst now it stands at from ,£ll to .£ls—almost double. On'earning capacity to-day, the increase is amply justified, for her lesser cost in running expense generally is so great that notwithstanding the profits of the ordinary coal-burning tramp fade into insignificance. Another theory advanced- as a reason for tho increase in freights' -was that wages have gone up considerably of recent years. Also, the cost' of running a ■ship kis increased exceedingly. Those opinions no doubt correctly answer, the question: Why has there, .been such a rise in'freights'?