SHIPPING FREIGHTS.

Auckland Star, Volume LI, Issue 103, 30 April 1920, Page 4

SHIPPING FREIGHTS.

I Fur the harassed victim of the cost of I living tlu-re is some hope in the confident prediction by the chairman of the Cunani ILinc of a great "slump" in freights, [which will check prices. Sir A. A. Booth. las the head of one of the largest British shipping lines, should know what he is talking about: and his prediction follows on a similar statement by another good authority. Mr. Archibald HurJ. that the shipping boom would lie burst by now construction and release of commandeered ships, nnd freights would consequently fall. Seeing that freights have been rising all the time, with inevitable effect on prices, this i* good news. In ponimenting on Mr. Hurd's statement we remarked that he did not allow for the hifluenco. of combines in regulating freights under the new conditions, 'but the chairman of the Cunard Mne should be well awnre of the extent to which this influence can operate, and he apparently does not think it can prevent a •■slump." Mr. Hunt bases his prediction on the boom in shipbuilding. "Lloyd's" returns show that 7.145,000 gross tons were launched in 1010. against 2,833.000 tons in 1013. and that on March 31st last nearly fi.000.000 tons were under construction in all countries, of which 3,30-1,000 tons were being built in England. High freights have been stimulating building in every country. A shipping writer in a London paper pointed out in January that, while controlled freights from the River Plate and Cuba were 63/ and SO/ a. ton, respectively, free ships could get 175/ nnd 140/. "I'nloss tonnage is written down to market value

a crash must follow when freights slump; and freights are not going to stop where they are for many months longer."' However, "the concern of the public is not with the fortunes of the companies, but with the effect on prices, and it is ohvi-

oils that prices must lie nffeetetl by n ! heavy decline from such high freights as we have quoted. Sir A, A. Booth also looks forward to lower freights affecting exchange beneficially. American exchange would he so influenced only by freights on cargo in American ships. Freights in British ships are part of the "invisible exports," which partly redress Britain's adverse balance of trade, and the value of these exports, which now amounts to some hundreds of millions, will be lowered when freights go down.. This disadvantage, however, would be much more than balanced by the gain to the whole community from a "slump" in freights. , both in lower prices and stimulated j trade.