BRITISH TRADE AND INDUSTRY.

Press, Volume LXIV, Issue 19460, 6 November 1928, Page 12

BRITISH TRADE AND INDUSTRY.

(WBITTEN FOB THE PBESS.) (By a Commercial Expert of the "Economist.")

The "Economist" freight index number of whole-cargo shipping freights for July showed an advance of 2.66 per cent, as compared with June, the figures being 109.04 and 106.21 respectively. The Shipping Outlook. The "Economist" shipping freight index number for July, as noted above, showed an advance as compared with June, and it is highly probable that the figure for August will show a still greater increase. Thus the British

shipping industry is experiencing the seasonal' improvement due to the cropmoving season. Tin's year, however, the improvement is likely to exceed the average, for world crops as a whole are extremely good. The demand for tonnage was initiated by Russia, who is reported to have purchased some 2n0,000 tons of wheat, owing to the failure of her own crops; the greater part of this is actually delivered or en route. The failure of the Russian crops has resulted in those Eastern European countries which normally draw supplies from Russia meeting their demands elsewhere. In the main, they have favoured Argentine and Canadian wheat and numerous boats have been engaged for Adriatic destinations.

The normal demand for tonnage on behall' of Europe is also now. coming forward, particularly for Canadian wheat, this being due to the advance of the Montreal navigation season. There is every prospect that grain shipments from Montreal this season will establish a new record. The River Plate market, though more variable, shows a steady enquiry for SeptemberOctober and even later trading, freight rates for coal from England to South America have also hardened r little recently, this movement being especially welcome to shippers. The fundamental position of the shipping industry, however, shows no' substantial change and when the crop 'moving has been completed 'the demand for tonnage will be much less active.

Unemployed Tonnage,

The latest report issued by the Chamber of Shipping discloses an appreciable increase in the tonnage or idle shipping in ports in Great Britain and Ireland. On July Ist last there were 495,866 net tons of shipping laid up—this figure being an addition of 132,511 net tons since April Ist, and

comparing with a total of 420,164 net tons out of commission a year ago. Alterations in the volume of "frozen" tonnage during recent years in ports of this country (all but a negligible, proportion of the vessels being Britishowned) are illustrated in the following table: — LAID UP TONNAGE (000's Net Tons).

"Coal stoppage,

The .present increase in idle tonnage—a reflection of weakness of freights in the first, rather than the second, quarter of this year—is not regarded entirely as a serious setback in Britain's shipping position (though last -year's improvement has been temporarily arrested), but rather as a seasonal fluctuation of not very.great significance.' In view of the large, amount of tonnage commissioned during the past year—as noted in our previous articler-it is not altogether a matter fOr v surprise that unemployed tonnage should show an increase as compared with a year ago. In fact, the visible surplus, being • only about 3.5 per cent, of the aggregate tonnage of the British merchant fleet, is not extravagantly large at this time of the year. The owners of unemployed > tonnage will derive some little satisfaction from the announcement that the American Shipping Board has decided to open bids on November 15th for the sale of the United States Lines, including the Leviathan, and the American Merchant Lines, which if sold will leave the United States Government eliminated as an operator of passenger vessels in the North Atlantic. The sale of. these vessels, if completed, will.removes drug from the shipping freight market, for it is hardly likely that under private enterprise- they will be operated at a loss, as under the American Government controlj and the sale will be further proof of the difficulty, if not impossibility,' "of satisfactory working State-owned shipping.

The Future of English Canals.

From time to time the question of the future of the English canals is raised and various answers are given. Some observers are inclined to believe that they have largely out-lived their usefulness and others take the opposite view; but there is perhaps more indifference than partisanship. Two of the leading canal companies, however, appear to regard the future with considerable confidence, and they have recently entered into an amalgamation; the companies are the Regent's Canal and Dock Company and the Grand Junction Canal Company, the new title being Grand Union Company. The company will have a capital cf about 8J millions and will operate 240 miles of waterway. The chairman of the Regent's Canal and Dock Company has made an interesting statement with regard to the future of the English canal system. Be admitted that there were various opinions on this matter, but it was the feeling of his Board -hat the canals coming under the ownership of the. new company were, with proper development, going to thrive. No one acquainted with the leading Continental ports can fail to note the very great use made of lighters and barges in carrying goods long distances to and from districts in the interior and the ocean vessels. Large numbers of these craft are of much greater dimensions than could be used on the English canals, but there would seem to be distinct possibilities for an extended use in England ofbarge services as feeders for the deep water ships, which must necessarily, to a considerable extent, use the chief ports A great deal more interest is being shown in perfecting the means by which barges and canal boats can be propelled. The horse is undoubtedly doomed for the longdistance traffic. A development ot canal facilities and traffic would mean increased competition for railway and road services, but it is reasonable that traffic should flow in whichever direction happens, taking all the factors into aecoiint, to be the most convenient and the cheapest.

DAIRY PRODUCE.

Messrs A. H. Turnbull and Co. are in receipt of the following cablegram from their principals, W. Weddel and Co., Ltd., dated London, 2nd inst. (prices for last week are given in parentheses):

Butter—Danish, 196s to 1983 (1949 to 19€s); New Zealand nnsalted, 184s to 190s (186s to 190s); New Zealand salted, 174s to 180s (1763 to 182s). Market slow.

Cheese—New Zealand white, 106s to 108 a (109s to 110s); New Zealand coloured, 104s to 106s (107s to 109s). Market slow. Old season's cheese up to 110s. Canadian cheese, white and coloured, 103s to. 110s (108s to 112s). For September cheese up to 114s.

1924. 1925. 1926. 1927. 1928 January 630 488 408 365 372 April 410 393 360 240 363 July 470 777 *860 420 496 October 334 574 371 273 " —