SHIPPING POSITION

Dominion, Volume 11, Issue 163, 30 March 1918, Page 3

SHIPPING POSITION

\ AS IT AFFECTS THE DOMINION THE INCREASED FREIGHTS Tho commercial situation in New Zealand is largely dominated by the freight question (savs the report' of tho Wellington Chamber of Commerce). The problem of sea carriage for our exports is one viewed with much anxiety. New Zealand is in the position of producing foodstuffs, wool, and other commodities which are urgently needed both in tho United Kingdom and by our Allies on the Continent, but the Dominion possesses the disability of being situated almost as far away geographically as it is possible for a producing country to be from its market. There is constant apprehension that vessels suitable for our trade and specially fitted out with insulated space will be diverted for other purposes or for thei carriage of produce from countries i situated nearer to the United Kingdom. The duration of each voyage, the relative space required for. coal to the exclusion of cargo, and running costs are all against the New Zealand trade and in favour of the trade with tho nearer ports. At the end of the produce year —September 30 —large quantities of our produce remained unshipped: in fact, ev#n now there is still portion of last season's produce awaiting shipment. Early iast year it was realised that strenuous endeavour would need to be made in the erection of additional refrigerated stores for tho accommodation of frozen meat and butter and .cool storage for cheeso. The situation has been met by the freezing companies pushing ahead with their cold-storage accommodation and by the erection at shipping ports of suitable stores for cheese; In Wellington the Harbour Board has erected a temporary cheese storo at a site near the Railway Wharf, and next to jjhe permanent structure which accommodates some 60,000 crates. The temporary building has been completed and can accommodate 'an additional 50,000 crates. The approximate cost of the temporary building was £6500, of which tho Government provided hnlf, the amount to he repaid by a surcharge on cheese stored. More overseas vessels wore available during the spring and.early summer than had been expected, but'there has, been a considerable falling-off during the past two months. It is anticipated, however, that tho. cool storage which is now available at various parts of the Dominion will bo sufficient to provide accommodation until vessels will be available to lift the cargo.

'Trend Toward Amalgamation. The trend in British shipping circles has been towards amalgamation, and several of the lines trading to New Zealand have linked up with wellknown British shipping companies. The Commonwealth and Dominion Lino has been amalgamated with the Cunard Lino and is known as the "Cunard Australasian Service," and the Fed-eral-Honlder-Shire and the New Zealand Shipping Company are associated with the Peninsula and Orient Company. But tho amalgamation which caused the greatest interest and comment in New Zealand was the sale of the Union Steam, Ship Company's shares to the Peninsula and Orient Company. Although the management of tho Union _ Steam Ship Company is still to remain in Now Zealand, there was a general feeling that as a result of the fusion t\ie ultimate control of tho large shipping company which lias built up its trade primarily in our coastal and intercolonial trades has passed from New Zealand. , It is now amalgamated with a shipping service ' which. includes the Peninsula and Orient Company, the British India Company, the New Zealand Shipping Company, the Federal-Iloulder-Shire Company, and tho Union Steam Ship Company. Considerable apprehension was felt in commercial circles that possibly endeavour might havo been made to divert steamers at present) engaged in the New Zealand coastal trade and in the intercolonial trade to channels where the freightearning capacity of the steamers would be greater. During the year there has been a serious shortage of tonnage for tho inter-island trade, difficulty being found at times by South Island shippers to obtain space for produce for North Island ports. In common with freights the world over, overseas freights to and from New Zealand have been greatly advanced. The last increase came into force on January 1, 1918. It -was understood that the advance in rates both outward and, inward was made at the instigation of the Imperial Government, which is controlling all tonnage, and that the shipping lines will derive no benefit from the latest advances, as the steamers are requisitioned by the Imperial Government at "Blue Book" tonnage rates. Freights on Wool and Meat. The increased freight on wool, meat, and dairy produce will not affect Zealand producers, as these commodities are purchased by tho '.Imperial Government, and the sea carriage is its concern. Exporters of hemp, tallow, pelts, and other lines are affected; their chief concern is to get space. The standard rate of freight from the United Kingdom is now £10 per ton, whereas prior to this tho rate for weight cargo had been £4 15s. per ton and for'measurement cargo £6 per ton. , Freights on other routes have also shown large increases; in particular, extremely high freights are being paid for the carnage of hemp to the United States of America. An out-

standing feature of tho American trade has been tho employment of sailing vessels. One of the shipping lines is now converting three of ite hulks into sailers, it is believed for use in the trade between New Zealand and the western coast of America. It was lately reported from New York that a number of sailing vessels have been chartered to convey general merchandise from eastern ports of America to Australasia.'