SHIPPING COSTS

Gisborne Herald, Volume LXXIII, Issue 21946, 14 February 1946, Page 5

SHIPPING COSTS

SHARP RISES NOTED HIGHER CHARGES LIKELY ORIENT LINE EXPERIENCE (9 a.m.) LONDON, Feb. 13. The chairman of the Orient Company, Lord Geddes, addressing the annual meeting, said the war had converted 50 per cent, of the company's fixed assets into cash and the process of reconversion had been begun to the extent of more than £2,000,000 which would be the cost of the 29,000-ton Orcadcs, which is now under construction. Lord Geddes said he did not expect the costs would revert to the lower prewar standards and he foresaw the need for the users of ships to pay more for services rendered. On the present building prices a 20,000-ton ship would require to earn £200,000 yearly over and above running expenses if an up-to-date service were to be maintained and developed. Running costs showed increases in every item, Lord Geddes, after saying that future international trade was full of uncertainties, added that he did not want to convey the impression of despondency. The Orient Company thus far had weathered storms though, perhaps, none so bad as the present one looked. The company’s policy was to secure the greatest general comfort for the many at a minimum cost, but it was too early to form anv estimate of what the running costs would be.