MAIN PORTS

Evening Post, Volume CXII, Issue 54, 1 September 1926, Page 12

MAIN PORTS

AND SHIPPING FREIGHTS

REPORT TO CHAMBER. OP

COMMERCE.

At a meeting of the Council* of the Wellington Chamber of Commerce last evening a report was presented by a committee dealing with the question of the flat'rate 'of shipping freight charged to main ports and minor ports. The report stated that the committee had considered the making of representations concerning this question in order to obtain for the main ports some concession in freights in consideration of the facilities they provided for expeditious loading, discharging, and dispatching as compared with the smaller ports where shipping so frequently ex-' perienccd delay that added to shipping costs. The- effect of a flat rate was that in comparison with the tonnage shipped, the main ports bore a heavier charge for freight in relation to the cost, of the services than at the smaller ports, and goods shipped from the latter must often be carried at a rate of freight below the actual cost in particular instances. The main ports had incurred very considerable expenditure in order to provide facilities that were to the advantage of the shipping companies, enabling them to clear thpir vessels very quickly, and these vessels again had the advantage of safe berthago and anchorage. In considering this matter one had to bear in mind that the case bore different aspects to exporters of dairy produce, to exporters of frozen meat, to importers of various goods and others, and there were cases where smaller ports had gone out of their way to attract produce to be shipped through them since they were so favoured by a flat rate of shipping freight. It was fully recognised, continued the report, that a considerable amount ■ of money had been invested in these ports and naturally the local interests desired such expenditure to be recouped. It was open to question, however, whether further expenditure should be incurred at these outports or that large sums of money should be spent in developing other small ports when the main port could so adequately servo all requirements. , . . .. WRONG- IN PRINCIPLE; The committee by no means advocated the elimination altogether of those small ports, but their development should be considered from a national standpoint, so that any expenditure might bear its proper relationship to the main ports, where all. types of. modern and up-to-date facilities had been provided.

Contracts, .stated the report, had recently been entered into with the shipping companies for . the carriage of meat and' dairy produce for some three jrears at a flat rate of freight;, they were of opinion it was economically unsound to make freight contracts over such a period when values had a general falling tendency. It was recognised, however, thai these contracts must be carried1 out; but'there were many' other lines not included in these eoii; tracts, and when.' the contracts came up again for review in three years' time, recognition should then be given to the favourable economic factors which facilitated shipping at the main ports. ■Tho committee was ' of the opinion that the present system of charging flat rates of shipping freights' from New Zealand ports was wrong in principle, and recommended that representations should.bo made to the overseas shipping*companies.

The report was adopted.