COAL FREIGHTS

Dominion, Volume 14, Issue 242, 7 July 1921, Page 6

COAL FREIGHTS

THE RECENT INCREASE IN RATES UNION COMPANY’S EXPLANATION A statement regarding ths recent increases in coal freights was made in Dunedin by Air. C. Holdsworth, managing director of the Union Steam Ship Company. Air. Holdsworth said that the necessity for the increases had 'been fully explained to the coal mining companies for whom they carried, during tho course of negotiations. It would, however, be only fair if the reasons for the advances were also placed before the public.

Air. Holdsworth stated that tho rates of freight charged up to the end of last month were not nearly sufficient to meet the expenses of steamers employed on tho West Coast. Their operations for last year left a heavy loss ou actual running expenses, without making provision for depreciation of the steamers, aud the next six months resulted in an even larger deficit. Unfortunately expenses had not yet reached the "peak," and bunker coal supplied in New Zealand .had within the last few week? increased .about 40 per cent., according to description and quality of the coal. The cost of provisions was the only item showing a tendency to fall, but wages, labour ashore, overhauls, etc., and, as stated above,’ bunker coal, showed no signs of coming down. In these circumstances increases were absolutely necessary, and for the next twelve months the coal companies had agreed to advances varying from 2s. Sd. per ton to Wellington and Lyttelton to a maximum of ss. a ton to a roadstead port where dispatch continued very poor, the rates varying with the mileage and dispatch obtainable. The directors regretted such increases were necessary, and would reduce the rates when the cost of operating strainers came down. To demonstrate how the multifarious costs connected with the running of steamers had increased since 1914, Mr. Holdsworth showed a reporter figures which had been taken out relative io tho expenditure required to keep them in commission. Six vessels running on the AVest Coast were tabulated to show the comparative costs in 1914 and 1921. The figures proved rather alarming (states the “Times ). The increases in overhauls alone showed an advance of approximately 300 per cent, as compared with 1914. The cost of working cargo on the six vessels had increased roughly by 140 per cent, in comparison with 1914. The other many expenses have also increased in a ..eintivo ratio.