THE WOOL FREIGHT RATES

Wairarapa Age, Volume XXXI, Issue 10714, 5 October 1912, Page 6

THE WOOL FREIGHT RATES

MAIIKKI) IXCRKASKS. (From the Dominion.) Il liiis been generally understood that the freight on woo! from Xeiv Zealand ports to London was about t:> ho raised by tin* various shipping companies trading to these shores, but confirmation referring this was not forthcoming until yesterday. inquiries made at the variou> snipping offices in Wellington elieiied toe information that the freight oil greasv wool had been raised from 3-lGMis ol a penny per lb. to o-St;:s of a penny per lb.. On other classes such as washed and slipe. I Mud. ami lid. respectively wiil be charged. The nitos which ruled for tiie greater pari of last season were just hail the above quotations. Shipowne: 's representatives in Wellington stated that the increased rate of freight ; s to take effect nr once on all lines of steamers. The. season is generally supposed to have commenced aboiu the end of October or the !;:'»i:ii: ; u<.; of Xovember, and the largest ,sh:p----j ments of wool generally le;r e Xe-,;-Zealand about Christii"v.) :, :ie for xlie Januarv sales.

The rise in freight rates Ll;r;i out the world wrs freely commented upon yesterday, and some opinioi:: were sought as to the can--: 1 . ![ was generally conceded ihaf. there i-- a want of tonnage, a;:d the c!;; v s <>i .steamer known as il'.e "tramp" is '.reaping a rich harvest, in freights afc the present time. Sailing ves;:\-; are also making a haul in this direction. It is said 't.lnu there are no.l enough bottoms afloat t ; tal-re the freights offering, and this i\ c-:p?e----ially noticeable in A us!" .alia. .Recent charters have boon abnormally high, and even sailers have been quoted at having been chartered at 30s. to 335., and even -10s. for wheat cargoes for the run to the United Kingdom or the Continent. The rate for .Krain from Xow Zealand has been 235., and if is understood that this is to be raised to 30s. This statement was not surprising to .shipping folk in Wellington, considering the rates ruling in Australia at present.

All lust wool season the rate for greasy flassos per II). was 11-1 Hd. from Australia, whereas the New Zealand rate ; as before stated, was 5-lGd. rt is said that the Australian wool rate, will he increased this season, hut by how much it i> impossible to say.

The shortage of tonnage is becoming more acute. On the Pacific Coast rates are three times as high as usual on some chartered vessels, and the consensus of opinion is that a further upward soar is not unlikely ; indeed, there i,s 110 knowing just what will happen, and the s ame (s the case with wheat figures also. The question might well lie asked:

| What is the cause of this shortage J of tonnagey One ;i" s «'er is that the 1 owners of the once familiar old ' tramp steamers are cither converting I them into oil tankers or else replae- . ing them with this newer class of J vessel. Shipbuilders at Home and abroad are simply overwhelmed with orders for oiltankers. Three years ago the contract price per ton for a 7000-ton vessel was from £7 to i'S i 011 the dead-weigiit capacity, whilst now it stanfis at. Irom Cil t-o .Llo ■ : alined double. On earning capacity to-day, the increase is amply justifled, for lu'r .lesser cost in running expense generai'v is ra grc>:i ■■ that notwithstanding the : of th.e ordinary coal-bc,miii"; fade into significance. Another theory advanced as a. reason for the increase in freight.-, was that wages have gone up considerably in recent years. Also, the cost of running a ship has increased exceedinglv. '1 hose opinions no doubt correctly answer the question : Why has there been such a rise in L fr'ight^?