SHIPPING LOSSES

Hokitika Guardian, 8 October 1931, Page 2

SHIPPING LOSSES

REDUCTION IN DEMANDS ON CARGO SPACE.

VOYAGES IN BALLAST. Souk* figures indicating the manner in which shipping has been affected by the economic' conditions were given in the Arbitration Court at Wellington by Air I, (). Bishop, on behalf ol the employers, when replying to the XX’a-ter-■Side XVorkers’ Federation’s application for exemption from the operation of the general older making a ten per cent, cut in wages. The annual report of the New Zealand Dairy Control Board for lastyear, said Air Bishop, showed Unit the reduction of overseas freights since the hoard commenced its work had amounted to £340,0U0. The annual report of the New Zealand Meat Board showed that the total savings of overseas freights on frozen meat products under successive contracts since 1922-23 had amounted to £1,059,000, a sub stantial saving having been effected >1 the last contract for the period 193033. Ai the time that concession was made, the full effect of the present economic position had not been felt. Imports had fallen off to such an extern! that vessels had been coming to New Zealand with very reduced cargoes, and and during the 1929-30 season ten vessels -were brought- to New Zealand in ballast to lift refrigerated cargo. Last Season 1-10,0(10 bales of wool, equal to 70,000 tons measurement, had been retained in New Zealand on no*

.count ol Hu 1 low price and the, over-, seas vesels lost the 70,000 tons of freight. In the later part of the season a fall in prices for mutton led to reduced roqiiroinents of cargo space l ami reservations were cancelled so that notwithstanding the efforts of shipping '■< mpaiiies to assist the export industry, vessels in Hie latter part of the seaon were going Homt with vacant space in their refrigerating holds and with a large portion of their general cargo space unfilled.

NEAY AND FASTER VESSEL. All tht 1 shipping companies engaged : n tht New Zealand export trade had entered into heavy financial obligations in respect of new tonnage. The newer and faster ships were all in the interests of the New Zealand producer, but tin l shipping companies were not atpresent able to see any reward for their enterprise in building. There had been a hope for some time that the costs of operating ships in New Zealand waters would he subtantiallv reduced, lint that hope had never been fulfilled. On the contrary, each successive waterside workers’ award since 1922 had increased the cost if cargo handling, and there had also been heavy increases of harbour dues. In England,' America, and Australia, vessels were able to work day and night if required to make up time and secure prompt dispatch. In New Zealand work could, be carried on only between 8 a.in. and 10 p.in. on days other than Saturday, and between 8 a.in. and 5 p.m. on Saturdays, while in many cases no work could he carried out on Saturdays after mid-day,

HARD TO SECURE FREIGHTS. The seasonal nature of the New Zealand export trade was a factor in holding up the cost of shipping. Ships must be available to take the New Zealand cargo when it was ready. It was difficult to secure outward freights at times suitable for the vessels engaged in export trade. Overseas ship were now coming out with just about hair-cargoes. During the season just ended eleven vessels had come out in ballast, and four ships had brought out part cargoes of basic slag, which was carried at a very low late, and for which the costs; of loading and diseharg ing were high, being practically iquivalent- to sailing in ballast. The overseas companies were also feeling the adverse effect of the present exchange position. At present the rate was 10 per cent., which meant than in remitting to London their earnings 0:1 freight paid in New Zealand. the companies lost HI per ei nt. through exchange, or £IOO in every £IO9O remitted.