BRITISH SHIPPING

Northern Advocate, 4 May 1926, Page 3

BRITISH SHIPPING

DISCOURAGING OUTLOOK. SIR OWEN COX’S VIEWS. “Although steady recovery is being evidenced in Great Britain’s industrial position, the outlook for British shipping is far from bright,” said Sir Owen Cox, chairman of directors of Birt and Co., Ltd., who returned to Sydney, after eight months’ holiday ■ abroad. “The British mercantile marine is carrying on at the present time by virtue of wise investments of its resources in other days, spread over avenues of trade outside of shipping itself. The voyage accounts of ships have been showing losses consistently for some time, and any profits made by the companies have been derived from investments in other directions. The position today is that there is a great surplus of shipping over actual requirements and the world’s seaborne trade -is less than formerly. Other nations than England are engaged in the shipping trade and owing to cheaper running costs are able to carry goods at low rate of freight, which prevents any increase in rates which is necessary to avert a repetition of past losses. The seamen’s strike of last year was a great blow to British shipowners, and was probably the greatest setback since the war. There is every sign of Germany entering the shipping trade in a determined manner and Germany seems better suited for this phase of trade than some of the other countries which have entered the field.

“Unfortunately, there appears to be no remedy for the present shipping situation other than that which time alone can bring. The excess of shipping has to be removed before any permanent improvement in the lot of the shipowners can be enjoyed. This is possible only by the older ships gradually being eliminated, for it seems too much to hope for any great expansion of cargoes sufficient to absorb the present supply of tonnage. In the elimination of surplus tonnage, there is no certainty that motor ships will play a very important part, for the price of oil is high compared with coal, and, although the motor ship eliminates firemen, shipowners have yet to see what will bo the course of oil prices, as the world’s oil supplies are limited to some extent, and it may bo found, if a large amount of motor shipping is built, that the price of coal may make the steamer a cheaper running proposition.”