The Archive · 1938

Precedent for High Rates Lacking

Complaints of excessively high rates on cargo deviated as a result of the local hostilities, striking a serious blow at local importers, were made against shipping companies operating to China by a local importer of metal products, when interviewed yesterday by a "North-China Daily News" reporter. The complaints related to the recent reduction of dues on cargo deviated through other ports as a result of the hostilities from 16/- per bill of lading ton to 13/6 per bill of lading ton, which reduction many local importers, it was stated, consider insufficient.

"There is no precedent for such charges being imposed at all" expostulated the importer interviewed, "and we expected at least a reduction to five shillings or so e ton. During the 1932 hostilities, no such charges were levelled on deviated cargo, nor were they imposed during the Pacific Coast shipping strike. What makes matters worse is that freight charges have risen considerably in the last year or so. The only extra expenses to which the shipping companies have been put through deviated cargo is loading and unloading charges at ports where the cargo was held pending conclusion of the local hostilities. All storage charges, according to the bills of lading, have to be paid by the consignes. I am sure that the loading and unloading of cargo at the "ports of refuge" where it was temporarily dumped does not amount to anything like 13/6 per ton. Local traders consider this to be an entirely unfair charge."

"Unreasonable" Charges A reliable estimate of the cost of loading lid unloading cargo at Hongkong, where much of the deviated cargo has been stored, was H.K.$3 per ton, and as this was the only expense occurred by the shipping companies, there was a margin of about 8/6 per ton to be accounted for. So far, local trading companies had been unable to obtain a statement from the shipping firms as to what expenses were covered by this sum. "The charges are utterly unreasonable", the dealer stated, "and with all the other worries which have io be faced by local traders during these difficult times they come as a bitter blow."

The importer particularly emphasized the fact that there was no precedent for such charges, and during the Pacific shipping strike, for instance, deviated cargo was forwarded to its destination without charge. The rates imposed worked as an especial hardship as far as metal importers were concerned. Piece goods, for instance, were worth far more per ton than iron and steel products. Piece goods might be valued at £100 per ton, and metal goods at £5 per ton, and yet the same rate was charged for both. lu the case of metal products, the rate in some instances amounted to 30 or 40 per cent. of the value, whereas in higher priced goods the rate would only represent a fraction of this percentage.

Text read from the printed page and cleaned; old type leaves the occasional error.

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