Pacific Shipping

Competition And Parochialism

Threaten Islands' Own Lines

By a PIM staff writer

News of the month in shipping is dominated by problems which em phasise the fiercely competitive nature of Pacific trade. New ships are en gaged, new lines being formed or pro posed and the pressure on Islands owned lines is increasing.

Nauru Pacific is a prime example of the situation that a regional ship ping line may be faced with when it enters the icy waters of commercial competition. On the other hand its successes can be a source of en couragement to the backers of a co operative line between the Islands states.

Late in August, Nauru Pacific was confronted with a demand from Transpac, the shipping company hold ing exclusive franchise for the US Trust Territory, to perform a com plete inventory of all cargo bound for the territory, both at the time of loading the Eigamoiya in Melbourne and at the time of unloading in Majuro.

This was in addition to a surcharge 3f 15 per cent, already levied against Nauru Pacific Line as compensation for Transpac’s loss of trade through he Nauru ship’s operation. The sur ;harge had apparently not been effective in limiting imports via the Nauru line, but the further require ment led the Nauruans to threaten to discharge the cargo then en route for Majuro at Nauru and let the con signees send for it from there.

Intervention by Marshall Islands District Administrator Oscar De 3rum, together with a visit by lonorary Consul-General for Nauru n the US, Carlton Skinner led to a ;uspension of the restrictions to allow hat cargo to be discharged as scheduled. A meeting was hastily irranged between Nauru President Tammer Deßoburt who was in Vlajuro, and Congress of Micronesia >enate President Amata Kabua and Representative Charles Dominick, >oth of whom were engaged in a pecial session of the Congress in s onape. The recently appointed Chief

of TT Transport and Communication, Joseph Beadles, was also summoned to the meeting.

Result was that the surcharge was removed and Nauru will continue to service Majuro only. Possible extension to a western TT port will be discussed in another six months. (See also Business pages).

In a hard-hitting editorial, the Micromtor, which is published in Majuro said that Nauru had proved its capability to provide regular and reliable service to Majuro, and the quality of the merchandise imported

from Australia met local require ments. “If Transpac can’t give freight rates comparable to Nauru, why not give the franchise to Nauru l ?” the paper asked.

Nauru recently offered to buy into Transpac and was rather brusquely warned off. The Micronesian in vestors in Transpac might be glad to see their company declared bankrupt, but selling the Nauruans the Ameri cans’ $210,000 share in Transpac and letting them run it might be better for everybody concerned, the Micro nitor thought.