Shippers colluding on price, say importers

By PAM GRAHAM

Importers are up in arms about increases in shipping rates, arguing that unregulated shipping companies are colluding on price.

Importers reckon announced price rises amount to a $150 million hit to their industry.

The cost of importing a container from Asia has risen by about one-third and the cost from Europe by about one-sixth.

International shipping companies were exempt from New Zealand's Commerce Act, said Importers Institute secretary Daniel Silva.

An investigation by competition authorities into shipping charges in Australia in 1999 had been inconclusive but further increases were shelved.

Silva said shipping companies should be subject to competition law in New Zealand but the Government did not give a fig about industry concerns.

The companies discussed rates and advertised them jointly but importers could still shop around.

In the past 10 years there was huge over-capacity in shipping around the world, but the industry had rationalised and rates were rising.

Forestry companies, which use bulk carriers for exports, have had to bear a doubling in shipping rates.

They say there is a shortage of ships because demand from trade within Asia was miscalculated.

New Zealand imports about 450,000 containers a year.