BRITISH TRADE.

Press, Volume LXIII, Issue 19110, 20 September 1927, Page 10

BRITISH TRADE.

SHIPS AND SHIPPING. (WRIT-EX TOR THE FKESS.) (By the Commercial Expert of "The Economist.") The "Economist" Freight Index Number. The sudden reaction iu the principal rates for whole cargoes, which occurred ill the middle of June resulted in the "Economist" Index Xumber of "tramp" freights showing, on balance, a fall of -1.37 per ceut. on the month, the June figure being 123.95, as compared with 129.'61 for May. British Shipbuilding and Shipping. . The shipbuilding returns of Lloyd's Register for the past quarter show that on June 30th the tonnage under construction in Great Britain and Ireland totalled 1,390,000 tons, an increase of 173,000 tons on the amount building on Idarcli 31st, and of 630,000 tons on the work in hand on December 31st, 1926. These figures suggest that the recovery from the effects of the prolonged coal stoppage have been fairly rapid. But whether shipbuilding lias attained a level which can be considered satisfactory is open to doubt. The tonnage commenced in the last quarter in this country amounted to 437,000 tons, which compares with 550,000 tons in the first quarter of the year. The recent average quarterly "commencement" figures are much below the corresponding figures of pre-war days. Indeed, it was stated recently that only 4.S per cent, of the berths available were occupied. A large proportion of the work started in 1927 consists ot "tankers." Thero is further evidence of the growing popularity of motor tonnage, 216,000 tons of motor-vessels being laid down in this country in the past quarter, iu contrast with 221,000 tons of steamers. Taking the ligures for the world as a whole, the motor tonnage building exceeds the steam tonnage for the first time.

But if the volume of work available for the British shipyards leaves something to be desired, the fact that much of their activity in recent years has been on - aeeount of British shipowners gives cause for satisfaction. In other words, British shipping, being largely modern, is relatively more efficient than the shipping of other countries, and this is bound to be a substantial factor in Britain, 's favour in the. figlit for trade. Thus only 9 per cent, of the tonnage registered in Great Britain and Ireland falls into the category of the ''outdated," and nearly 50 per cent, of the tonnage launched during the past five years sails under the British flag. Under the conditions of fierce competition that are likely to continue for some time to come, the question of efficiency is more important than tonnage expansion. Tlie White Star Line. One of the outstanding events in the world of shipping—and also in the world of finance —was the ofljer in the closing days of July on behalf of the White Star Line, Limited, of 2,500,000 6 A per cent, cumulative preference shares of £1 each at 21s per share. Though the new issue market showed obvious signs of indigestion as a result of the recent heavy spate of new issues, the underwriters were relieved of all liability. The White Star Line, .Limited, it will be remembered, was formed in January last to acquire from the International Mercantile Marine Company of New Jersey'(U.S.A.), through- the Royal Mail Steam Packet Company, tile Hrhole of the issued share capital of the Oceanic Steam Navigation Company, Limited, for the sum .of £7,000,000. As a result of this purchase, all non-British interest in the last-named company was eliminated. The share capital of the White Star Line is £9,000,000, consisting of £4,000,000 ordinary shares and the balance in preference shares. The ordinary Bhares, the prospectus points out, are held by the Royal Mail Steam- Packet Company, the Union-Castle Mail Steamship Company, other associated and allied companies, and by the directors of the company. The tonnage controlled by the company is extremely substantial. The registered gross tonnage of the vessels wholly owned by the Oceanic Steam Navigation. Company at the end. of last year was 305,789 tons, in addition to which 135,002 gross registered tons are owned by the company as their proportion of vessels owned jointly with other companies, while the company is also interested in a further gross tonnage of 164,667 tons. The chairman is optimistic with regard to the future "In my opinion," lie says, "we may confidently look forward to better times for British shipping, in Tvhicli the. White Star Line should fillip participate." The proceeds of- the issue of preference shares will be utilised to pay two instalments of the purchase price and it seems that these are being paid earlier than was originally , contemplated. A balance of less than £2,500,.000 is due iii 193-S.

Compulsory Insurance of Buyers. The British Maritime Committee has circulated its considered views on the matters raised in the agenda of the forthcoming conference of the International Maritime Committee at Amsterdam. The subject of - compulsory insurance for passengers figures prominently in the agenda. It is stated that British shipowners regard the main features of the convention which has been drafted on this subject -with favour, but decline to pledge themselves to it until they know more about the cost. Indeed, the question of cost has been one of the main obstacles to progress whenever compulsory insurance of passengers has been considered in the past. It is significant that shipowners in the home trade are apparently divided. The scheme provided by the draft proposes to substitute for the_ narrow and uncertain liability for accidents at sea, on the part of shipowners, a wider and definite plan of indemnity. Instead of a passenger who has suffered an accident seeking to recompense himself from the shipowner, as though the shipowner had done him the injury, lie will claim his indemnity. on .a fair and proper basis, as on an insurance policy. The premium for his insurance would be collected with his passage money.

Thus the scheme would be, as the British Maritime Committee points out, a bargain between sea passengers on the one hand and shipowners on the other* hand. Legal liability would disappear, the clause by which it is proposed to effect this change reading as fellows: "The insurance aforesaid shall be an absolute bar to all actions against the shipowner carrying the passenger insured or any other shipowner in the Courts of any country m respect of an insured accident other than for the enforcement of claims based on the insurance." The object of this clause is to debar" legal liability claims not only agaiust the shipowner carrying the passenger insured, but also'against any other shipowner, presumably iu the event of an accident arising from a collision. But. it is explained, there is no intention to curtail in any way existing rights againts negligent or defaulting third parties other than shipowners. It remains to be seen whether the scheme will be adopted.