PASSENGER LINER SERVICES

Dominion, Volume 33, Issue 4, 29 September 1939, Page 8

PASSENGER LINER SERVICES

Higher Costs And Fares

' British passenger liner companies are now busily engaged in converting their services to wartime conditions, wrote the shipping correspondent of “The Times” on September 8. The sailings were bound to be affected exteiisively. Working expenses have risen already and they are likely to advance more. One of the chief of the additional costs is the charge for war insurance, which w’ill vary according to the values of the different vessels, but in any case must be considerable. As an example, on the present basis the charge for war insurance alone on a liner valued at £1,250,000 would be £lOO,OOO for 12 months. In the circumstances of war substantial increases in passenger rates are regarded as inevitable. Fares which were calculated to cover working costs in normal times and leave something for interest dearly would be inadequate to meet a much higher level of expenses. In ordinary times every effort was made to turn passenger liners round quickly in port, so that they might be earning passage money and freight rates for the maximum period of their lives. These carefully prepared programmes cannot be expected to be carried out in time of war. Probably ships will need, to be diverted, with the result that voyages will be prolonged, and vessels may be detained at particular points. All the consequent interruptions of the smooth working of the liner organizations must obviously add greatly to their working costs. [On September 13 the Suez, Panama and Cape steamship lines announced a surcharge of 33 1-3 per cent, to be added forthwith to all passage rates. The issue of return tickets was to be discontinued.]