OBSOLETE SHIPS

Evening Post, Volume CV, Issue 135, 8 June 1923, Page 5

OBSOLETE SHIPS

HUGE SURPLUS TONNAGE

A SERIOUS ECONOMIC PROBLEM

. Throughout the ports of ths world, particularly in the. United States, and to a lesser extent in Great Britain, many hundreds of steamers, repi-esenting millions of tons gross register, are lying idle. A large proportion are obsolete,. and others are useless in that they cannot be used profitably in trade.

. Tile disposal of these huge fleets of useless vessels is a condition precedent to a return to normal times in the world's shipping-, says the "Sydney Morning' Herald," and the problem oi effacing millions'of tons of' obsolete and unsuitable shipping is one Si the most serious 'economic problems facing shipping trade to-day.

The comparative study with pre-war figures of returns of the 'tonnage of steamers and'motor ships afloat and the volume of trade passing throughout the world cannot but emphasise that, in order to return to normal prosperity, either a phenomenal revival in trade must speedily eventuate, or the amount of tonnage afloat must be' substantially reduced.; Shipping returns available, at present indicate that by the end of the present year the amount of tonnage afloat will exceed the corresponding figure in June, 19H, by at least 16,500,000 tons. Moreover, the. present volume of trade is estimated to be one-third less than the'pre-war standard. The unsettled state of Europe does not point to any immediate prospect of trade improving, arid as" yet there appears to be no settled international 'policy for establishing a sincere basis of peaceful trade. The prospect of a very sudden increase in the world's trade can be dismissed, and, in any case, prosperity is a slow growth, an essential ingredient for. its promotion being a solid basis of finance and international relations. ' ' THE NORMAL OUTLET. ■In ordinary times the present situation is one which has not occurred. Before the war ships would pass out of service as they became; worn out or uneconomical. New vessels were constructed, embodying more' up^to-date designs and inventions, and affording most often lower operating costs. The old ships passed out unnoticed,, and were broken up, the Bcrap materials finding their way to steel works, ■where most processes require a proportion of scrap material. The process was-one which benefited shipowners, who would have depreciated the vessels in their books so as to make way for future • •shipbuilding' ■ programmes. Shipbreaking was a regular industry of' .its 'own; built-up in normal dimensions in accordance with the steady flow; of old vessels .to the scrap heap. "■' The ,present 'market ■ for obsolete tonnage ir out.of gear. During the war old ships were-kept; running. lit was impos- : sible to build new. ships very often, and freights proceed so remunerative that the exorbitant high running costs were more than - balanced. War losses, too, took many fine vessels and some old tonnage, but created ■ a shipping shortage : which called for' immediate action on the part of many Governments. ' Fleets of standardised ships, were constructed in England and the United States, and even in Australia. This with the post-war boom in shipbuilding more than compensated for the war losses, so that to-day without much :of the formerly obsolete tonnage disposed'of, tonnage is far in excess of former requirements and still farther in excess of actual needs. . '•' In the big fleets of idle tonnage which encumber shipping to-day, three, classes are prominent. The first is the exenemy tonnage, the second class comprises standardised vessels, built during the war, and lastly, there is old'tonnage, unquestionably ' obsolete, which, under" ordinary circumstances, would not be in existence. ' . THE IDLE VESSELS. The former German steamers requisitioned during.the war, and handed over thereafter, in accordance with the Peace Treat}', are. a serious item. Many were disposed of at extreme prices, and are now^ realised. t 0 be, worth; a very small portion^ of the-prices paid for them. In many instances they are now,, obsolete vessels, but ey<?n those which are not worn out, are found to be unsuitable for British trade. The British ship is, without doubt, the finest in the world a* a shipbuilding product, and German vessels have not the facilities to which British shipowners are accustomed. The internal arrangements ar 6 not in accord with British ideas, and British engineers very -frequently experience difficulty ..with.'.German .boilers and machinery. No amount-of reconditioning short of .reconstruction would suit them to British trades,: and as. they • have not been designed for particular British trades,-while actually, seaworthy and-re-liable they are really obsolete. Colossal sums were expended in Great Britain and the United States during the last s'jges of the war on standardised vessels. Huge fleets of steamers were turned out on a fixed pattern at great speed as' the' need for shipping was urgent. It was a Avar measure, and it was necessary, to have ships, tha precise suiting of each ship to a particular trade being impossible. The class of war veir sels now fairly common comprises general cargo carriers, but places their owners at a, great disadvantage in competitive shipping, fur they arc. built, to no specialised service and are not adapted to any in particular.- In Great Britain the -war steamers arc- the product of-established yards whore-' a certain amount of pride is customary in turning out a. ship. Such, unfortunately, is"not altogether '■ the. case' with American steamers, many .of which arc factory built. a.vit were, and embody defects in construction and machinery. The United States Shipping. Boaa-d has at present about a, thousand steamers laid up, and it'is estimated that about one-third of these are through faulty construction either in hull of engines of little practical value. PROBLEM OF DISPOSAL. The best course to be adopted by Government and private owners of idle shipping is undoubtedly to face the position immediately, write off the losses, scrap the inefficient tonnage, and thus impart, a better value to other tonnage. By reason of it being .the largest owner of idle and inefficient tpniage, the attitude of the United.. States Shipping Board to the problem is being watched very carefully. If the. steamers are scrapped the elimination from the world's markets of many millions of tons of shipping, will do something, to bring better times for all shipowners. "There are proposals on foot, however, to sell the vessels to the highest bidder regardless of nationality, and it is contended that if such vessels were equipped .with Diesel engines they could be operated profitably. If this is done, however, in t'aco of the already inflated shipping tonnage, the period before ship, owners will be able to secure remunerative freights will thereby be lengthened in proportion. ..Although sales ..-ire. continually reporttd of stiamers to shipbreakera on the other side of the world, there is really no shipbreakiug of note being earned on in Australia. In fad, owners oi' Australian vessels which should be scrapped are unable to find n local market, and are thus faced with the expense of haying lo keep their vessels idle ill Auetra-

Han ports until opportunity offers for their disposal abroad. In Sydney Harbour at present there is a large number of obßolote vessels laid up, and among the fleet of some of the shipping companies trading on the Australian coast are a number of obsolete vessels, .which are kept running pending an opportunity to replace them with more efficient tonnage. Such a state of affairs in the long run affects the community at large. If inefficient ships are to be kept running, and the companies are to show profits, it . necessarily follows . that freights and fares will have to remain at a higher Jevel .than would really be necessary were all the fleets uniformly economical. .