FREIGHT RATES

Hokitika Guardian, 14 July 1930, Page 8

FREIGHT RATES

AUSTRALIAN ANXIETY

POSITION BELIEVED

SYDNEY, July 3

•Exporters in Australia are greatly relieved now that the increase in shipping freights, which seemed inevitable, has been deferred. T'his happy statb of affairs was.mainly due io the intervention of the Prime'Minister. ("Mr Seuliin), who called the par-ties-together and encouraged a frank conversation. The prospect is bright now for, an ’agreement that may even ob v i ate any in crease.

The position from which shipowners and exporters are endeavouring to find a way out is full of difficulties. The owners have repeatedly stated their willingness to maintain present rates of freight—even though it involves them in loss—until the end of the present, year, provided that all sections of importers will enter into agreements for the shipment of their produce, thereby emi/bling the owners to arrange their tonnage in keeping with the requirements ,of the trade. Almost all sections of shipper's were willing to make those agreements, and it is stated that wool exporters are alone in refusing to sign up.

When the new tariff came into operation it seriously affected the posiiion of the shipping companies by reason of the fact that so many imports .were; prohibited. The companies since then have had a lean time as far as inward cargoes are concerned, and many ships have come out to Australia, almost empty. Some idea of the actual effect of the tariff is gained by .the disclosure that a motorshin of 10,000 tons, which arrived; recently in Melbourne, via the Panama, did not carry sufficient cargo to pay for the cost of its fuel, although the voyage wa,s' made by way of America fort the dual purpose of getting a cargo and also cheap oil.

Tt seems’ likely that Australia is to enjoy a good season, owing to the ’•A'lnteous rains that have fallen where rain was most needed. If that be so, there will be ample produce for export, and ships leaving Australia are likelv to he loaded to their capacity. This is what the shipowners require if it is to pay them to trade to * Australia.. 'T T hoy do-' not want to send out more shins than are needed, hence the desire for • definite agreements with the various parties. These would enable the owners to ration their supply of ships—and rationing is extremely' popular in Australia just now, as many of the workers know to their cost. Everybody seems to have the rationing fever, so why not the shipowners? To meet the owners all shippers must co-ordinate their plans. A meeting of the Australian Oversons Transport Association, representing all the States, will he called shortly, and if there are to he any increases in freight this is the body that will decide them. However, the has been greatly cleared, and a belter understanding exists on all sides This is another leather in the cap for Mr Seullin, who is gaining many friends in all walks of life.