SERIOUS OUTLOOK

New Zealand Herald, Volume LXXIV, Issue 22818, 27 August 1937, Page 11

SERIOUS OUTLOOK

SHIPBUILDING COSTS ■ ■ t ' CHECK ON ENTERPRISE RECOVERY EXAGGERATED By Telegraph—Press Association— Copyright LONDON, August 25 "The cost of shipbuilding makes it practically impossible for shipowners to hope for even a moderate profit," said Lord Craigmyle, formerly the Hon. Alexander Shak, director of the P, and 0. and other shipping companies, hi aspeech at Leith. "It is imprudent to lay down ships at to-day's prices," added Lord Craigmyle. "Accordingly, shipowners are compelled to curtail, even to stop, building until the cost 6 are more moderate. •

"The recovery of shipping has been, considerably exaggerated in. certain quarters, although tramp shipping has already benefitted from the trade expansion. "The most favourable omen is the recognition bjj. the Governments of Britain and the Dominions of the importance of a strong mercantile marine."

Overseas authorities are agreed that the price of new tonnage is rising and that present demands for freights in world trades can in many, cases scarcely be satisfied. Deliveries of new ships are being delayed as the consequence of pressure on the yards, particularly for naval requirements. These facts are making shipowners hesitate in considering the building .of new tonnaft is considered, however, that cargo tonnage to-day, especially under the British flag, is not excessive and that, unless a considerable replacement programme is put into force during -Hie next five Years, it will prove inadequate' for the needs of years to come. This js emphasised by the fact that British cargo-carrying tonnage is tons gross less than it was in 1914. - ■