SHIPPING SLUMP

Nelson Evening Mail, Volume LXIV, 24 February 1931, Page 5

SHIPPING SLUMP

DECLINE IN WORLD TRADE TREMENDOUS INCREASE IN IDLE TONNAGE SLOW RECOVERY PREDICTED (United Press Association—By Electric Telegraph—Copyright) WASHINGTON, 23rd February. The Department of Commerce issued a report stating that there was a heavy decline in traffic through the Panama and Suez canals in in marked contrast to the upward trend of such shipping in the immediately preceding years. This emphasised a world-wide decline in overseas trade which was marked also by a tremendous increase in idle tonnage and a pronounced decline in world shipbuilding. The latest return of idle tonnage was striking in that it represents an increase for individual countries of several hundred per cent, or up to nearly 1,500,000 gross tons. Maritime countries taken as a whole on the Ist January 1931, had about 8.276,000 gross tons of shipping laid up, an increase of 150 per cent, over a year earlier. Britain fared worst with approximately 1,445,000 tons, which was a 300 per cent, increase. The United States was affected to the extent of half a million tons. Germany had the same figure compared with practically none the year before.

The report indicated that Australia in 1930 had 90,000 gross tons idle and in 1931 171,000. The report suggested that the chronic weakness of the freight market indicates that the recovery from the present depression is unlikely to be more than gradual.”