The Guardian FRIDAY, FEB. 9th. 1923. TRADE AND FREIGHTS.

Hokitika Guardian, 9 February 1923, Page 2

The Guardian FRIDAY, FEB. 9th. 1923. TRADE AND FREIGHTS.

Cablegrams dealing with the trade outlook received during the week-end, remarks an Exchange, have a healthy and optimistic tone. One of the most significant is the message from bondon that the Conference Line shipping companies announce a reduction in freights to Australia of Ids a ton, promising at the same time that other reductions will be made shortly, though a decision in regard to homeward freights has still to he arrived at. This must lie gratifying news to all classes of traders, and the effect is bound to lie felt very widely throughout Australia and N<=v- Zealand. The'

Conference Line shipping companies, however, did not make the freight reduction announcement until almost forced to do so liy competition. In fact during last mouth various cablegrams said that shipping companies at Home were still finding the task of making ends meet a very hard one, and that if they were to give concessions, people engaged in other Sn(iustries, primary producers particularly, must be' prepared to give concessions as well. The London "Times” in an article on January 25, said: "The Commonwealth Line cannot expect to secure a monopoly of the* Australian trade, and by cutting rates, the Australian Government is simply playing into the hands of foreign steamship companies, who are eagerly pressing into the Australian trade. It is surprising to find the Australian Government taking a step which can only lead to further heavy losses on its shipping enterprise.” Even “Lloyd’s List” made the rather astonishing comment that a number of London merchants engaged in the Australian trade had intimated that owing to the circumstances in which the Common wealth Line’s freight reductions had been made, they would not avail themselves of the offer to ship cargo at lower rates than the Conference Line shipping companies. Evidently that intimation did not have a great deal of weight behind it. Competition lias once again proved thoroughly good for trade. Shipowners, like everyone b'stq are feeling the necessity of going out after trade, and the best inerhod they have discovered is to place the cost of the service they supply on a more reasonable basis. Something has already been done ill this direction, Ix'cause as announced in August last freights then were on the average only about one-fifth of what they were in 1920. But the downward movement could, with advantage, lie very much more pronounced as far as New Zealand is concerned. The need seems to he for strong, combined and sustained pressure brought on shipowners so that New Zealand produce can lie landed more cheaply in the Old Country. Wo would then be hotter able to compete successfully with foreign produce and the disadvantages under which we labour on account of distance from the market would bo minimised.