IMPERIAL SHIPPING COMMISSION

Northern Advocate, 8 December 1936, Page 10

IMPERIAL SHIPPING COMMISSION

TWO NEW SHIPS FOR PACIFIC SERVICE?

f per Press Association. Copyright.] i WELLINGTON, This Day. The report of the Imperial Shipping Commission on the possibilities of a British passenger and cargo service between Western Canada, Australia and New Zealand, was released yesterday by the Minister of Marine, tne Hon. P. Fraser, and it is being released simultaneously in Britain, Canada and Australia. Tne proposed service would be operated by two new ships, comparable with the existing Matson liners, capable of operation at 21 knots. • The report states that, to date, the Matson liners had won, not by cutting the rate, but by the superiority of the amenities and speed, and the cost of each ship to win back the passengers would be £1,250,000 with a life of 20 years. Items For Report. ; The report states that the committee was asked to supply a report as follows: (a) As to the traffic possibilities of a British passenger and cargo service between Western Canada and New Zealand.

(b) Whether'the service proposed would be appropriate, in view of the traffic possibilities and of any other shipping facilities available, and, if not, what kind of service would be appropriate.

(c) As to, v the possible financial result of such a service, taking into account the financial result of the working of existing British services between (1) San Francisco and Australia and New Zealand; and (2) Vancouver and Australia and New Zealand. (d) Whether such service would have any ill-effect on other, British shipping.

Two New Ships Proposed.

The proposed service would be operaited by two new ships carrying approximately 350 to 375 first-class passengers, 250 cabin class passengers, 150 to 175 third-class passengers. The ships would be comparable with existing Matson Line vessels and capable of operating at a speed of 21 knots.

Each ship would sail once a month on a schedule based somewhat as follows: From Vancouver and Victoria to San Francisco, Honolulu, Suva, Auckland, Sydney and Melbourne, and returning to and" via the same ports, excluding San Francisco northbound. The report refers to the financial assistance given the Matson Line by the United States Government, and says the company’s strength in spheres other than shipping, in hotels, sugar, oil and real estate is noted. The company average over 2,000,000 dollars in profit in the years 1926-33, in which period approximately 77 per cent, of its net earnings were from these sources, other than steamship business.

The company has this year invested 500,000 dollars in Pan-American Airways Ltd. Existing mail contracts cease by virtue of the 1936 Act on Jyne 30, 1937, after which a new basis 1 of a system to neutralise higher costs of building' and operating American ships will be fixed. Traffic Possibilities. The traffic possibilities between Westex-n Canada and Australia and New Zealand are discussed. Passenger traffic has been (1925-35), twice as important as cargo in the’CanadianAustralian Line receipts, and it is mainly on an increase in passengers that expectations for an improvement are based. Inter-port Canadian-Aus-tralian traffic yields more passage money than through traffic, but the figures measure the effect of the depression and recovery from 1933. Comparing 1935 with 1931, the Canadian-Australasian Line’s share in the total through passenger traffic fell from three-fifths to one-fifth, and there seems no reason to suppose that, under present conditions, this position would be altered. To maintain four ships of the Matson class, passenger miles must be increased from the 1935 figure of 120,000)000 to 154,000,000, an increase of 28 per cent. Calculations are based on the assumption that the Union Line, between Wellington and San Francisco, will be discontinued and that the Awatea will not dirrpnish the Auck-land-Sydney traffic of the CanadianAustralasian Line. On these assumptions. and perhaps more important, since a 20-year period is in view, assuming no great setback in world economic conditions, the required increase is concluded to be not unlikely. Higher Average Fare. The cost of each ship would be £1.250,00, and it is considered the ships would be appropriate to the ser-

vice. It was stated the average fares on the new ships would be higher than those obtained at present. The conclusions of the commission are as follows: — (1) Any-useful answer under the first two heads of the order of reference must in some degree involve the idea of a speculative venture, since a superior service might call forth traffic on a scale not visible at present, whereas a more modest endeavour would not, in the opinion of the commission, alter the position at present.

(2) For a service of the character under consideration, passenger traffic is likely always to be of greater importance than the carriage of cargo. “No Need For Loss.” (3) In regard to this, the commission anticipates that, with such vessels as are contemplated, and assuming a certain increase in traffic, there need not be a large, if indeed any loss on operation. (4) In regard to the fourth head, the commission consulted the President of the Chamber of Shipping of the United Kingdom and the chairman of the Liverpool Steamship Owners’ Association, each of whom had discussed the matter with a number of his members. and their general view is that, whatever objections are still strongly held to the maintenance of uneconomic shipping lines, no serious damage to other British shipping interests need be anticipated from a service such as proposed, provided the conditions indicated in their evidence before the commission are fulfilled.