LOWER WHEAT FREIGHT

Sun (Auckland), Volume II, Issue 563, 16 January 1929, Page 10

LOWER WHEAT FREIGHT

ANNOUNCEMENT IN SYDNEY SUBSTANTIAL REDUCTIONS (United P.A.—By Telegraph — Copyright) Reed. 10.30 a.m. SYDNEY, To-day. Substantial reductions in wheat and flour freights to the United Kingdom, Europe and South Africa have been announced by the Overseas Shipping Representatives’ Association. Some reductions amount to as much as 20 per cent. Shippers are unanimous that this will tend to induce greater trade in these products, and materially help growers, in view of the low price they have been receiving abroad. The Sydney and Melbourne wheat markets have hardened as a result of the decision. A MERCANTILE SURPRISE (Australian and N.Z. Press Association) Reed. 9.44 a.m. LONDON, Tuesday. The news cabled from Sydney about a reduction of the freight on wheat parcels to 32s 6d a ton has caused some surprise in the general mercantile community, who are disposed to regard it as a sop to Australia to make up for the increase in outward freights; but grain traders have been expecting a reduction, though they did not think it would exceed ss. They consider the reduction was made because the shippers would not pay the previous rate of 40s. and chartering business was practically at a standstill. They expect the reduction to have the desired effect of increasing shipments, and think that it is likely to encourage the shipment of parcels of unsold wheat by shippers who would not run the risk when the freight was 40s.