SHIPPING FREIGHTS

Dominion, Volume 8, Issue 2426, 3 April 1915, Page 11

SHIPPING FREIGHTS

EARNINGS OF STEAMERS

WHAT ARE THE VALUES OF FREIGHTS? - (By Telegraph.—Press Association.) Auckland, April 1. The recent advances in shipping freights were further discussed to-dav by Mr. Robert Burns, president of tho Chamber of Commerce. He dealt particularly with the criticisms of his former statements by Mr. C. M. Turrell, of tlio Now Zealand Shipping Company. Referring to tho suggestion made by the representative of the shipping companies in Wellington that his statements showed lack of information, Mr. Burns said that tho freight rates which he quoted were supplied to him by tho New Zealand Shipping Company. The company neglected to inform him that prior to the outbreak of war contracts had been made for the carriage of butter and frozen meat at tho old rates, and that tho surcharge of 25 per cent, was not imposed on this class of cargo. When his attention was drawn to this fact he had made a correction of his original statement. "The inference is, however, obvious," Mr. Burns remarked, "that in the absence of these contracts the shipping companies would have levied the 25 per cent, surcharge on butter and meat. lam informed that the froight rates for shipments of such cargo from Australia, where similar contracts have not been made, have been materially increased." Objection had been taken, Mr. Bums continued, that it was \infair to estimate the earning capacity of steamers on the basis of a vessel capable of carrying 12,000 tons of cargo. He had therefore examined the actual case of the steamer Anglo-Brazilian, a vessel of 4688 tons not register. Taking the last round trip of this steamer as an illustration of the results created by tho increase in freights, a vessel of that size should have a cargo capacity of 7000_ tons. Ha had not been able to ascertain exactly tho quantity of cargo carried by the stoamer on her last voyage, as a portion of it had- been landed at Australian ports and records of those consignments were not available. • As tho steamer had been fully loaded, her original cargo could not have been less than 6000 tons. Freights from Montreal had advanced by 425.- 6d. on the minimum _rate and 575. 6d. on the maximum. Taking the former figure as the basis it was apparent that on her last outward voyage the AngloBrazilian had oarned £12,750 more than she would have done on the July rates. Mr. Burns said he had taken the figures given by the "New Zealand Trade Review" for the vessel's Homeward cargo, and having calculated the freights as carefully as could be done without the actual accounts he had found that the value of the freight was greater by £5500 than it would have been on the rates in force before the war. The earnings of the steamer for. the round voyage, thereforo, showed an. aggregate increase of £18,250. That figure, ho contended, Was entirely disproportionate to tho .increase-in working expenses. The increase, seemed startling on a vessel of the Anglo-Brazilian's size, and would work out at more per ton than the increase which he originally calculated for a steamer of 12,000 tons capacity. Mr. Burns added that his calculation had been made on a most conservative basis, and his figures could be really checked, as tho steamer came to New Zealand under consignment to the New Zealand Shipping Company, and made the return voyage under charter to.the Shaw, Savill, and Albion Company. Referring to the question of working expenses, Mr. Burns said he could not understand the statement by Mr. Turrell that "coal had doubled in price." He was informed by tho manager for the "Westport Coal Company that the statement was in fact incorrect. No advance, had been made in the price of bunker coal ex collier, the only increase being 2s. per ton on coal ex hulk.