asked the Minister for Transport and Power if his permission was sought or obtained by any of the Irish shipping companies which increased their freight charges as from Monday, 20th November, 1967; and if he will now ensure that the increases are withdrawn having regard to the serious precedent which such action has undoubtedly created.
Ceisteanna—Questions. Oral Answers. - Shipping Freight Charges.
2.
As I have indicated previously, there is no statutory control over sea freight rates nor, in view of the international character of shipping, would it be possible to exercise control unilaterally. Freight rates are, accordingly, left for settlement between importers and exporters on the one hand and shipping companies on the other. I have, however, had inquiries made in the matter of the principal shipping companies concerned and these companies have represented that the increases imposed are adequate only to cover the extra costs involved as a result of devaluation and that the increases in freight charges would not increases the profitability of the services operated. They also state that an immediate increase in the rates was necessary because outstanding nonsterling accounts became payable at the new rates of exchange.
The increases in freight rates between this country and the continent are in line with increases which have been made generally in freight rates between devaluing and non-devaluing countries.
I should also point out that freight rates represent only a small fraction of the value of the goods concerned and the increases will, therefore, absorb only a similarly small fraction of the benefit of devaluation to our exports.