BRITISH SHIPPING

Hawke's Bay Tribune, Volume XXIII, Issue 78, 14 March 1933, Page 4

BRITISH SHIPPING

SAVED BY EFFICIENCY AND ECONOMY. DEPRESSION PROBLEM. Wellington, March 14. Problems facing the British shipping industry during a period of world depression were mentioned by Mr 0. J. Cowan, chairman of the London board of directors of the New Zealand Shipping Company, Ltd., and chairman of directors of the Federal Steam Navigation Company, Ltd., on his arrival in Wellington on a short business visit by ihe Wanganella last evening. In the face of foreign subsidised competition it was only by rationalisation of services and the strictest economy consistent with efficiency that British shipowners had been able to carry on at all, he declared. Shipowning, like almost every other industry, was having a lean time at present, Mr Cowan said. “We are all inclined to think our own particular business is having the worst spin, and certainly no one in the shipping trade can remember anything approaching the existing depression,’’ he continued. FAR FROM ENCOURAGING. “Shipowners realise that in the nature of things their business must be one of tho last to recover as they can only do well if others are prospering also. The outlook for them is far from encouraging. They have to face foreign subsidised competition, and it is only by rationalisation of their services and tho strictest economy consistent with efficiency that they have been able to carry on at all. “As far as I can see, the limits of such economy have been reached, and the cost of running ships is likely to increase. It is therefore urgent that shipowners should find some means of increasing their net earnings. At present they have to send many vessels to New Zealand in ballast, and this one-way traffic is disastrous. “In spite of this, the New Zealand Shipping Company have in the last four years built six new vessels for the trade, and with encouragement they propose to continue adding to their fleet, hut they need all the help that is possible.” LOOKING FORWARD TO VISIT. Mr Cowan said that it was a good many years since he was last in New Zealand, and he was looking forward to his visit with very much interest. He came out to Australia in the Orontes and has already visited Perth, Adelaide, Melbourne, Sydney, and Brisbane. The Australian people seemed to him to he reasonably optimistic. They had made a great effort to put their house in order, hut they realised that it was not in their power to recover entirely lof their own efforts and that only a return to some measure of prosperity could enable them to do so. A small increase in the value of the commodities that (hey had to sell was all that was required to put things on a sound position. “Tho same remarks apply equally to New Zealand,” Mr Cowan added, “awl this country’s efforts in a very difficult situation are being watched at Home with much sympathy.”