Islands face more freight rate rises
p. 89 · Read in the full issue
Freight rates in a number of Pacific reas are about to rise, or have risen, Kth one refreshing exception—Trans ■ac Lines Inc substantially reduced hem for rice, flour and milk for licronesian consignees from Septem er 1.
American Samoa is bitterly con *sting attempts by Pacific Islands ransport Line (PITL) and Poly esia Line Inc (PLL) for increases s high as 25 per cent on the US est coast-Pago Pago services.
The Cook Islands Shipping Co fted its rates by 10 per cent, from ugust 22, for cargo carried from ew Zealand to Rarotonga. Cargo om the Far East (Hong Kong, aiwan and the Philippines) for apua New Guinea, plus Australia id New Zealand will cost 15 per nt more from December 1, accord g to a decision by the Australian id New Zealand Shipping Con rences. Both these rises were aud ited to increased handling charges id ship costs.
The general manager of Transpac, r Douglas Echols, said that in mak g its decision to reduce the freight arges on staple items, the board had aked at the rising cost of those mmodities in Micronesia. Before anspac went into container cargoes nsignees paid $26 a ton. That lount was reduced to $l6 with the reduction of containers.
About the same time it happened us that the price of rice in the <^u ket L went U P’" Mr Echols d. With the rising cost of staple ms in Micronesia, we’re trying to ure out what to do. We don’t know It s too early in the game to have 3ugh experience on the actual eco mics of the container and how re doing it, but we hope to have it pretty soon, but as a matter of icy, we m Transpac want to make exception for the three commodi * nee, flour and milk from the st coast.”
Vlr Echols said that to offset the uctions, Transpac would “readjust” euphemism for “increase”) rates on er cargo.
Governor John M. Haydon and the lencan Samoa business community led forces to fight PITL and PLL.
L sought an average increase of per cent with certain exceptions westbound cargo, such as 6 per * or refrigerated cargo and iber and 40 per cent on the mini m Pill of lading for motion picture is and advertising matter. PLL ited to lift rates by 24 per cent some cargo, both eastbound and tbound.
The Federal Maritime Commission, in response to protests, postponed increases till August 13, in compliance with an order by President Nixon to freeze prices. The commission then ordered a further suspension of any increase and a public investigation and hearing to see whether increases were “unjust, unreasonable or other- Wl ?c un^aw / u l under federal statutes.
There will be a hearing before one of the commission’s administrative law judges. Governor Haydon has also Pacific Far East Lines (PFEL) be included as a respondent
because of reports it proposed to in crease freight rates, The commission has ordered that individuals and firms, who made such a vigorous fight against the increases, be named as complainants in the pro ceedings. These are American Can Co, American Samoa Chamber of Commerce, Ivi S. Pele, Senate Presi dent Salanoa, acting House Speaker Fa’asuka Lutu, Senator Tagaloa, Rep resentative Seufagafaga Langkilde, Sawyer Sifoa Co, Mrs W. R. Seacord and the US Department of the In terior.