THE PANAMA CANAL.

New Zealand Herald, Volume XLIX, Issue 15140, 2 November 1912, Page 9

THE PANAMA CANAL.

I RISKS AND EXPENSES. i SHIPPING DIRECTOR'S VIEWS. The views of one of the directors of the New Zealand Shipping Company are given in an interesting article on the Panama Canal, which appeared recently in one of the leading German papers. He estimates that on the outward voyage from London to New Zealand a saving of 1900 miles could bo effected by using the new canal. - The homeward voyage would bo shortened by about 900 miiee. At an average "speed of 300 knots per day this would ■ mean a saving of some nine days iii the two trips combined. Taking the canal dues as fixed at a dollar per ton, a vessel of 12,000 tons would necessarily pay about £2400 for the privilege of using the canal. Tho saving of nine days, in tho opinion of the director in question, would by no means compensate for this increased expenditure.

In addition, as there is no suitable coaling station in tho Pacific between Panama and New Zealand, an increased amount of coal would necessarily have to be carried, thus reducing the capacity for freight. This, he state®, is a very serious consideration, as the boats of the New Zealand Shipping Company, for instance, carry a very large amount of freight. This, comb. :ed with the loss of trade with Capotown, which would ensue by using the canal route, are, he considers, two potent factors against tho present utilisation of the canal by the New Zealand Shipping Company. The article goes on to state that the prevailing opinion .in European shipping circles is one of uncertainty. Should tho question of canal dues result in a deadlock, an international boycott of the canal is contemplated. Before deciding on any action it will be necessary to wait and see how events turn out. The safety of tho canal is referred to as an important factor which has to be considered. Tho canal, being dependent on its locks, runs a serious risk, the director quoted considers, from destruction by an earthquake, which is by no means a rare occurrence in these parts. This would involve the probable loss of any ships in the canal at the time. Underwriters will, therefore, have to take risks which are not incident to the maritime traffic carried on at present through the Suez Canal. Tho article concludes by stating that it 19 not considered likely that the Panama Canal will bo used by any except American vessels for some considerable time after its completion.