The news magazine of the South Pacific · since 1930

Pacific Islands Monthly, 1 April 1975Vol. 46, No. 4

Pacific Transport

p. 65 · Read in the full issue

Another Chill Wind For Png From

Australia's Waterfronts

Papua New Guinea, already hard it by inflation, faces a further rise i the cost-of-living stemming from a 5,5 per cent increase in freight rates om Australia. The new rates be ame effective from the first voyage ut of Australia from April 1. The itest hike follows close on a rise f 15 per cent in Air Niugini fares, nd freight schedules for third-line perators (see separate report p 65).

A rise in the rates to Papua New luinea was inevitable after the recent ft in the freight charges between ustralia and Fiji, The four shipping ampanies which operate on similar ites between Australia and PNG ave been under heavy cost pressure >r several months. These lines are onpac (Burns Philp and AWP ine), New Guinea Express Line, ew Guinea Australia Line and Kar nder.

Inbuilt into the application to the ustralian Shippers’ Council for a jw rate 19 per cent higher than the st one was a provision to offset an :pected increase in wages on the ustralian waterfront. The rise anted to the watersiders by several evedoring companies was $25.02 a eek, with one company still negoti ing a pay claim when the freight >e of 15.5 per cent increase was >proved.

A further adjustment of freight tes could be made some time after ay 5, the date from which the new ly for watersiders applies.

The last rise in freight rates was in ne, 1974, That increase led to a >e of more than 10 per cent in the '•JG cost of living in a few days, is unlikely that the latest rise will ive any less impact. It will make ustralian imports less attractive in where several other countries, eluding Japan, are edging into the mmodity market.

The new Australia-Papua New uinea rates for general cargo are: Sydney-Brisbane to Port Moresby marai.—s46.2s a cubic metre, 1.95 tonne.

Sydney-Brisbane to Lae-Madang- Rabaul. —s47.9s a cubic metre, $53.35 a tonne.

Sydney - Brisbane to Wew a k - Kavieng - Kieta. $53.90 a cubic metre, $60.05 a tonne.

Melbourne to Port Moresby- Samarai. —ssl a cubic metre, $55.65 a tonne.

Melbourne to Lae-Madang-Rabaul. —551.60 a cubic metre, $57.40 a tonne.

Melbourne to Wewak - Kavieng - Kieta.— ssB a cubic metre, $64.75 a tonne.

Nauru Pacific Line continued its “maverick” policy, and did not put its rates up for Australia-Papua New Guinea. In the past it has acted unilaterally, often not following the rates of other shipping companies for several months.

The rates between Australia and Fiji went up by 17.75 per cent re cently, for all lines except Nauru Pacific. Well into March Nauru Pacific had made no move to align their Australia-Fiji rates with those of other shipping lines. , . . , The shipping lines met the PNG Shippers Council in Port Moresby ? n March 6 and 7 . to discuss a rise for southbound freight. The shipping lines, if an increase is approved, will probably accept 15.5 per cent, the same increase applied to northbound freight.

The PNG Government took a close interest in proceedings, and any agreement reached between the ship ping lines and the council would almost certainly go before the government for final approval.