Manawatu Evening Standard. THURSDAY, AUG. 14, 1930. SHIPPING.

Manawatu Standard, Volume L, Issue 221, 14 August 1930, Page 6

Manawatu Evening Standard. THURSDAY, AUG. 14, 1930. SHIPPING.

English newspapers contain references to the difficulties experienced by British shipping companies in securing- sumcient outward and inward cargoes at remunerative rates. {Shipowners throughout the world are experiencing . similar conditions. Indeed they are accustomed to lean periods as well as periods of prosperity, but 'in the past trade cycles have followed a more or less regular course. During the latter part of the war and the short lived boom which occurred after the armistice, the earnings of British shipping were on' a phenomenal scale, but at the beginning of 1922 shipping companies were experiencing what was said to be the worst, depression ivithin the memory of shipowners. Since then the business has had discouraging experiences —sometimes the demand for freight space has been promising whereas, during other periods there has been a dullness of trade that materially affected their earnings. , However, as British shipping generally is well managed the liuarices of the various companies have . been maintained in a sound condition. New Zealand is concerned in the affairs of shipping concerns, for it is by this means our products are moved to the markets of the world. Wlien shipping companies are carrying profitable freights both ways and showing healthy profits they are more inclined to maintain services and adjust their rates on favourable terms to importers and exporters than when operating at a loss. To-day, operating costs, as in other businesses, are much heavier than they were before the war and with trade dull it becomes difficult to keep the expenditure within the revenue. When freights become unprofitable ships are laid aside and unemployment is aggravated. In this connection it may be noted that, according to English papers, approximately five million tons dead weight of shipping , is idle in various parts of the world;

the United Kingdom, of course, having its quota of idle ships. The shipowners are naturally seeking- a solution of their difficulties and amongst the proposals is one to curtail shipbuilding until the trade -warrants its expansion. An objection to this is the impossibility of securing an international agreement. The future of the shipping industry is dependent upon a revival of world trade and a restoration of something like normal conditions but the present outlook is not very hopeful; in any case a recovery is almost certain to be slow. The position of • British owners is, to some extent, aggravated by the fact that some foreign Governments provide substantial subsidies to vessels under their flags and the competition is thus made formidable.