MERCHANT SHIPPING

Dominion, Volume 26, Issue 280, 22 August 1933, Page 12

MERCHANT SHIPPING

World’s Total Gross Tonnage

GREAT BRITAIN’S SHARE

The decline of about 30 per cent, in the volume and of more than 60 per cent, in the value of international trade since 1929 has wrought havoc with the shipping industry. A large proportion of the world's carrying capacity, already excessive in 1929, was rendered redundant and had to be laid up, while the remainder was forced frequently to sail the oceans haltempty. To add to the difficulties, many countries indulged for the sake of prestige in the pernicious hobby of increasing both construction and competition for freight bv large subsidies. . . Numerous attempts, origiuatin 0 m Britain, to reduce the world’s shipping capacity and to raise freight rates by international scrapping and laying-up schemes all ended in failure. Despite some improvement in the internal position of the principal countries, the level of international trade and freight rates is as low as ever. It is therefore of interest, says the ‘’Economist, to examine the changes in the size and composition pi the world’s merchant fleet as recorded in the 1933 edition of Lloyd’s Register Book published this week. The world’s total gross tonnage, exclusive of vessels of less than 100 to ™. of sailing ships, declined from 68,368,000 tons in June, 1932, to 66,628,000 tons in June, 1933. The reduction of 1,740,000 gross tons, though considerable, was wholly insufficient to bring about a readjustment of supply to demand. The volume of- vessels launched declined from 1,617,000 gross tons in 1931 to 7~»,000 gross tons in 1932. On the other hand, the volume of tonnagei lost and broken up rose from 1,336,000 gross tons in 1931 to the record level of 1,696.000 gross tons in 1932. The distribution of the ownership of the world’s steam and motor tonnage in 1929. 1932, and in 1933 is shown in "the table below :—

World’s Steam and Motor Tonnage.

It will be seen that, with the exception of Japan, the shipping capacity of all the principal countries shows a reduction as compared with 1932. The decline has been most pronounced in the case of the British Isles, whose proportion of the world's total capacity declined from 30.2 per cent, in 1929 to 28.6 per cent, in 1932, and 27.9 per cent, in 1933. It must,- of course, be remembered that not the whole of this tonnage is available for carrying ordinary merchandise and passengers, since a large proportion is devoted exclusively to the transport of bulk oil. The figures of tanker tonnage, excluding vessels of under 1000 tons gross, are given below. They show that the volume of oil-carrying capacity, which rose until 1932, began to decline in the past year:—

Tankers of 1000 Tons and Upward. (In thousands of gross tons.)

Eliminating tankers, lake vessels, ships of less than 4000 tons gross, and tonnage over 25 years old, there remains in 1933 a world tonnage of 31,549,000 gross of large, efficient ocean-going tonnage, available for all purposes except that of carrying bulk oil. An analysis of this figure by nationalities is shown below: — Large Ocean-Going Tonnage in 1933. ' (In thousands of gross tons.) Proportion

The above table reveals the relatively high efficiency of the merchant fleet of Great Britain and Ireland, which, while including only 27.9 per cent, of the world tonnage as recorded in the Register Book, actually comprised, in 1933, 37.7 per cent, of the more efficieht ocean-going tonnage available for general cargo and passenger purposes.

Of the total tonnage owned in Great Britain and Ireland, 14.7 per cent, is less than five years old. The countries having the largest proportion of tonnage less than five years old are Norway (28.2 per cent), Holland (29.4 per cent.), Denmark (17.9 per cent.), and France (16.7 per cent.). Of the United States, sea-going tonnage only 6.1 per cent, fall into this age category. It is significant that of the total tonnage registered in Great Britain and Ireland, 81.1 per cent, is under 20 years old, as compared with 68.5 per cent, in the case of the merchant fleet owned abroad. Similarly, a classification according to size shows that nearly 50 per cent, of the world’s tonnage of liners of 15,000 gross tons and upward is owned by Great Britain. SHIPPING PROFITS Furness, Withy and Co., Ltd. The profit of Furness, Withy and Co., Ltd., for the financial year to April 30, 1933, was £379,764. Last year it amounted to £369.672, after crediting £lOO,OOO from taxation reesrve and deducting £18,750 interest on new ordinary shares. If the “transfer” this, year is of similar dimensions the earnings of Furness' Withy will have remained very much “in status quo ante.” In view of the depression which has gripped the shipping industry. the directors may be forgiven for regarding this result as “not unsatisfactory,” says the “Economist.” On the other hand, £2 millions of ordinary capital which was issued somewhat unexpectedly in December, 1931, has not yet beccfme tangibly productive. The board has been loyal to the conservative traditions of the company in reducing the ordinary distribution from 6 per cent, to 3 per cent., requiring £135.000 against £lBO,OOO. The sum of £200,000 is set aside for depreciation, compared with £150,000, and the carry-forward is reduced from £156,773 to £145,198.

Year to April 30, 1931. 1932. 1933. £ £ Profit 202,(!91 309,672* 379,674 Depreciation .. 150,000 150,000 200.000 Net profit 142.691 219,672 179,674 Brought forward 236.171 198,237 156,773 Preference div. . 53,125 55,313 56,250 Ordinary dividend— Earned £ .... 84.566 164,359 123,424 Paid £ 230,500 180.000 135.000 Ernaed p.c. .. 2.7 5.5 2.7 Paid p.c 7} 6 •• Carried forward 198,237 t 156,T73x 140,19 S •After crediting £lOO.OOO from tax reserves and deducting £18,750 5 per cent, interest on new ordinary shares. fAfter crediting £lll,OOO from tax reserves. xAfter writing off £25,823 balance of new issue expenses.

The turbo-electrie ship Queen of Bermuda entered the New York-P.ermivi;i service in March, and its completion is reflected in a rise in balance-s.ieet “shipping property” from £2,430,822 to £3,498,155. “General investments’ are reduced in consequence from £2.523,990 to £1,825,366. The increased figure of £5,550,252 for investments in subsidiary companies presumably does not include the recently acquired interest in Shaw, Savill and Albion, which was not announced until Mny. The balance-sheet reveals a strong liquid position.

(In thousands of gross tons.) Country. ‘ 1029. 1932. ivao. Great Britain 20,046 19,562 18,592 U.S.A, (sea) . 11,036 3.215 10,270 3,331 10,088 3,093 Germany .... 4,058 4,143 3,888 France 3.303 3.508 3,470 Holland 2,932 2,957 2,759 Sweden ..... 1.480 1,691 1,658 Norway ••••• 3,218 4,164 4,<rr8 Japan 4,187 4,255 4,25S World total 66,407 68,36S 66,628

1029. 1932. 1933. British Isles 2,350 2,316 2,269 U.S.A 2,510 2,519 2,502 Norway 1.450 1,539 1,508 World .... 8,550 8,809 8,757

of world Great Britain .. Tonnage. .. 11,900 tonnage. Per cent. 37.7 U.S.A .. 5,627 17.8 Italy .. 1,801 5.7 Germany .. 2.232 7.1 France .. 1.909 6.0 Holland .. 1.6-12 Norway 997 3.2 Japan .. 2,07!) 6.6 World .. 31,549 100