SHIPPING PROFITS

New Zealand Herald, Volume LXXV, Issue 23020, 23 April 1938, Page 9

SHIPPING PROFITS

FALL IN FREIGHTS

BIG EXPENSES INCREASE

SETBACK TO CONSTRUCTION

Shipbuilding costs and running costs have greatly increased, and it is doubtful whether present freights in markets as a whole, with the existing volume of employment, fire sufficient to provide even for depreciation. That is the burden of the report for 19.37-38 of tho Chamber of Shipping, London. In 193? the striking recovery of tramp freight rates was sufficient on the average to provide for current depreciation and a fair return on capital. It also permitted a contribution toward making good arrears of depreciation which remained at the end of the depression. All Markets Lower The recovery reached its peak in September, and from then onward there was a marked recession in all markets. Freights in the trades regulated by the Tramp Shipping Administrative Committeo gradually fell back to the minimum levels.

As illustrating the course of freights it may bo pointed out that, taking 1929 (the Shipping Subsidy Act datum line) as 100, tramp freights averaged 84.3 in 1936, 131,5 in 1937, 103.5 in January, 1938, and 97.0 in February, "1938. Cargo liner owners, in common with tramp owners, continued to benefit from the system of freight co-operatiort. Nevertheless, the time lag which, owing to the greater stability of Conference rates for purely liner cargoes, keeps liner earnings a step behind tho open market, prevented them from experiencing tho same measure of improvement as tramps. * Liners were also still seriously affected by subsidised competition which keeps the supply of tonnage above demand nnd by restrictions on international trading. £10,000,000 Arrears The report directs attention to the fact that the position of British deepsea tramp shipping, which was faced with bankruptcy in 1933, has been strengthened, the promise of Government support made in 1934 restoring both confidence and capital values. Financial stability, which slowly improved with the help of the subsidy during 193-5 and 1936, was further and substantially increased in 1937. At the same time it is emphasised that it must not be overlooked that tramp-ship owners began tho year with over £10,000,000 arrears of depreciation to make up before real profits could be said to accrue. Commenting on new construction the report states that the incentive which improved conditions gave to the renewal and expansion of tonnage has been checked by the abnormal increase in shipbuilding costs. That was largely due to the rise in prices/' of raw materials. The agreement of the iron and steel industry to stabilise its prices for one year, although expressly mado in order to "prolong the present level of trade activity," came only after tho rise had taken place.

THE CITY MARKETS TOMATO PRICES HIGHER , MUSHROOMS PLENTIFUL Tomatoes were in small supply at the City Markets yesterday and were keenly sought, prices consequently being high. Tree tomatoes, however, were in poor demand. There was a plentiful supply of mushrooms, which sold fairly well, prices varying according to quality and condition. Cooking apples were slow of sale, but choice dessert apples sold fairly well. Oranges were in good demand and Fiji mandarins met with a fair sale. Passion fruit were scarce, values being high. Cabbages were plentiful, the increase in quantity recently being remarkably rapid. The quality was mostly good, the prices ruling being lower than they have been for some timo past. There were fewer cauliflowers, but the quality has improved and values were higher. Carrots and pumpkins were in oversupply, prices falling considerably. Poultry prices showed a slight increase over recent rates owing to a short supply. Hen egg 3 wero quoted 2d more than last week's prices, rates for duck eggs remaining unchanged. ' values were:— FRUIT

Apples, Delicious, local, 3s to 4s; Hawke's Bav, 4s to 5s Od; Ballarat, 3s to 4s (id; Granny Smith, 4s Od to 5s Od; Jonathan, Os to 8s; Winesap, 4s to ss; pears, L.8.J., Os to 7s Od; Packhams, 5s to Os; Koiffors, 3s to 4s;Peter Barry, 5s to Os; Winter Coles, Winter Nelis, Os to !)s; tomatoes, outdoor, extra choice, 15s to 19s a caso; others, 4s to 13s; hothouse, lOd to Is Id lb.; Hutt, lis to 10s 3d a case; tree tomatoes, new black, extra choico, 5s to Os; others, 3s to 4s; yellow. 4s to 58; oranges, California, 35s to 40s; Fiji, 20s; grapefruit, Californian, 50s; Jamaican. 38s to 48s; lemons, choice cured, 10s to 13s; others, Os to Os; mandarins, Fiji, 22s Od; bananas, ripe, 8s to 30s; pines, Queensland, 20s to 22s !>d; granes, To Kauwhata, 10s to lis; hothouse, Hamburg, 0d to is lb; Coleman, extra choice, is Od to 2s lb; others, Is to Is Od lb; passion fruit, 12s to 17s; guavas, 3s to 4s; persimmons, 4s to Gs; quinces, Os to Bs. FIELD PRODUCE Beet, Cd to Is 3d a dozen; celery, cooking, Od to Is a bundlo; dessert, Is 3d to 2s Od; carrots, Od to Od a dozen or 2s to 4s a bag; cauliflowers, Os to 9s a sack; cabbages, 3s to 7s; cucumbers, 4s to 8s a dozen; trench beans, 4s to 7s Od a bag; stringlpss beans, 7s to 15s; green peas, 8s to 17s; kumaras, 4s Od to 5s Od; Tauranga, 3s Od to 4s Od; leeks, 3d to Od a bundle: lettuce, 2s to Os a caso; marrows, 2s to 2s Od a dozen; melons, citrons. 2s to 2s Od a sack; onions, choice, Os to 7s a bag; medium, 4s to ss; potatoes, Rangitiki, 8s Od cwt; Pukokoho, Is Od to 3s a bag; Ohakuno, 5s to Os; pumpkins, choice Crown, Os to 7s cwt; Triamble and others, 3s to Os u sack; parsnips. Is to Is 9d a dozen; radish, Od to Is; rhubarb, 2s to 3s; spinach, Od to 3s 3d; spring onions, Od to Is a bundle; swedos, 5s to 7a a bag; turnips, Od to Od a dozen. POULTRY Cocker6ls, heavy breeds, prime, 3s to Cs; not priino, 1b Od to 3s; light breeds, prime. Is 3d to 2s Od; not prime. Is "3d up; fat roostors. heavy brtals, prime, 2b to 3b; light breeds, Is Od to 2h 3d; fat hens, heavy breeds, 2s 3d to 4s; light breeds. Is 6(1 to 2s 3d; pullets, heavy broeds, best, 4s 9d to OS Od; smaller, 2s up; light breeds, best, 4s to 7s; smaller, 2s to 3s; drakes, young, prime, 2s to 3s; smaller, Is up; old, Is to Is Od; ducks, yOung, 2s ()d to 3s Od; old, Is ,to Is Od; geese, 3s Od to ss; turkey hens, 4s to Os Od; gobblers, 7s to 12s. BUTTER AND EGGS , Eggs: Hen, A grade, 2s B%d a dozon; B, 2s 3'/ a d; C, ]s o%d; duck, A grade, 2s iy 2 d a dozen; B, Is o'/ a d; C, Is sy a d. Farmers' butter, lO'/jd to Is 2'/ a d a pound. MINING SHARES IN LONDON LONDON, April 21 On the mining market to-day the following quotations ruled;—Clutha Iliver, buyers, Is 7Jd> sellers, Is IOAd. Molyneux, buyers. Is; sellers, Is 3d. Mount Lyell, £1 3s.

WHEAT, FLOUR AND SUGAR

LONDON, April 21 Wheat. —Cargoes are steady and parcels are irregular. Futures, London. — May, 42s 3jd a quarter; November, 33s lsd. Liverpool: May, 6s lid a cental; July, 6s lOjjd; October, 6s Bjtl. Spot trade steady. Australian ex ship 36s 3d to 37s 6d. Flour easier. Australian ex store, 26s to 275. Haw sugar, beetroot basis, 4s llfd.