SHIPPING FREIGHTS.

New Zealand Herald, Volume LVII, Issue 17460, 3 May 1920, Page 4

SHIPPING FREIGHTS.

Experienced shipowners have for some time been discussing a collapse in freights, as the inevitable sequence of the boom fostered by artificial conditions. This view was endorsed by Sir Alfred Booth, chairman of the Cunard Steamship Company, in addressing the annual meeting of shareholders last week. According to Lloyd's returns, the world's tonnage is about 10 per cent, over the pre-war total, while new construction exceeds, all previous records. Against this increase in the supply of shipping must be set the diminution in the world's commerce, indicated by th 9 elimination of German and Austrian foreign trade and the decline in volume of British trade to about half the pre-war standard. On paper, the world's shipping facilities greatly exceed its present transport requirements, while competition should be keener than ever owing to the development of the American, Japanese and othor foreign merchant fleets, resulting in either the laying-up of a large tonnage or the cutting of freight rates. In practice, freights have continued to rise, and new tramp steamship companies have sprung into existence by dozens. The explanation of this paradoxical position is found in a complication of circumstances, all tending to reduce the carrying capacity of the world's shipping. Some of these, such as deficiencies in inland transport and reduction of working hours, have caused congestion at ports, involving delay in the despatch of shipping. The bunkering of steamers at American ports, instead of British, has materially reduced their cargo capacity, while the suspension of trade between Britain and Central Europe has caused the employment of the larger vessels on distant voyages to carry commodities which were formerly handled by the traders of the North Sea. But all authorities are agreed that the chief factor in the waste of tonnage is the control system, with its proved incompetence in the management of shipping and the distribution of goodn. Weighing all conditions, the Liverpool Steamship Owners' Association estimates that the efficiency of shipping in 1919 was at least 30 per cent, below the prewar standard. Mr. W. J. Noble, chairman of the Chamber of Shipping of the United Kingdom, states that in many cases steamers are doing only one-half to two-thirds of their pre-war work. The continuation of these conditions is impossible, and, sooner or later, efficient management and international competition will restore a healthy condition in the shipping industry. This should bring about cheaper freights, with a reduction in the cost of ocean-borne commodities, and a wider distribution of the world's tonnage among the trade routes.