SHIPPING FREIGHTS

Dominion, Volume 8, Issue 2425, 1 April 1915, Page 6

SHIPPING FREIGHTS

« SHIPOWNERS' VIEWPOINT HEAVIER RUNNING COST Inquiries regarding the statements mado by Mr. It. Bums, President of the Auckland Chamber of Commerce, a few days ago, were made among heads of shipping companies in 'Wellington by a Dominion reporter. Generally, the gentlemen approached expressed opinions to the effect that Air. JBums's statements were misleading, betraying u lack of knowledge 011 his part of the subjects of which he spoke. Air. Burns stated that an ordinary cargo steamer would carry 12,000 tons of freight, and, on this ho based calculations of the earning capacity of steamers, figures- were produced to show that the estimate of 12,000 tons is just about double the quantity of cargo carried in an averago full ship leaving New Zealand for the Thames, or for any other English port. Air. C. AI. Turrell, of the New Zealand Shipping Company, replied to Air. Burns in more detail. "Wo have had 110 advice of increases in freight charges from Home ports yet," he said. "We bave only heard of tliem from consignees 011 whom demands for extra freight have been made, but we have expected that extra freights would be charged. I'eopje generally do not realise how the working cost of ships lias increased of late. Coal lias doubled in price, and allprovisions, of which very large quantities have to bo purchased for 6nip6, have increased enormously in price. And the cost of building steamers has gone up at least 30 per cent, in the last few years. The extra expense entailed on shipowners by delay in loading and unloading in London is very heavy indeed, for when a fcliip is lying in port earning nothing, and the .running cost is still going on, the owners' profits soon disappear. Ships ordinarily discharged in eight or nine days have lately taken as Ion? as five or six weeks to unload., Fortunately this does not apply so much to our ships, which have been given a degree of preference owing to such a large part of their cargo consisting of frozen meat and other goods required urgently by the authorities at Home, but some other New Zealand ehipa, carrying general cargo, have been weeks in discharging. These are some of the reasons why the companies have 10 charge extra freights unless there was a scarcity of tonnage. I have omitted ,to mention the Heavy charges wo are called upon to pay now for war insurI ance. Air. Burns also makes this incorrect statement: "The rates on produce shipped from' New Zealand to London all bear a surcharge of 25. per cent. It is quite incorrect to say that all our oargo bears a surcharge of 25 per cent. The companies here have not' put any | war surcharge on frozen products, which are all carried under contracts made before the war broke out. And on an average insulated ship about three-fifths of the space is taken up by meat and dairy produce. Mr. Burns refers to a recent increase as being the third since the outbreak of war. Ido not know that there have been increases, but I do know that there have been several increases in freight rate 6 at Home of which wo have never_ been ach'ised. Freights are all prepaid by shippers at Home, so tliat we know nothing about the rates. When the war began, owing to the difficulty we met with in insuring our freight revenue, we required all freights to be prepaid, but since then wo have been able to mako arrangements to insure our freights, and shippers from here aro not asked for prepayment. But we aro not advised of the freights prc.paid at Home, presumably becauso they are not established for any time. They are at a certain level to-day, but tlioro may bo another rise or a roduction tomorrow. Rates from London are at present fluctuates."