SHIPPING BOOM.

Otago Daily Times, Issue 15603, 5 November 1912, Page 2

SHIPPING BOOM.

SOME INFLUENCES AT WORK,

ADVANOED FREIGHTS EXPECTED.

(From Oun Ows ConnEsroxDENT.) LONDON, September 21. We are now in tho course of a big shipping: boom, Tho ocean transport business has increased far moro rapidly during recent voire than baa tho amount of ton-nago available. Tho effect of the change in tlie relative position of tihoso two vital factors lias mack) itself felt during tho last 12 months in a remarkable fashion. M.wiy thousands of tons of new shipping arc now under construction', but it will bo a long timo before tho present situation is materially altered. On the North Atlantic routo tho volume of freight available- for transport hasdoubled during the past decade, wlrilst a similnr stato of affaire prevails m tlio Aaisbroljan trade. Business is also active in connection with China and Japan. Tho most striking expansion in Uie world's shipping trade is, however, to bo found in connection with South America. Argentina, Brazil, and Mexico, to mention Uie Bast coast, are all doing an enormously inorcased business with other countries, while on the West coast Chili U developing very rapidly; ur.d tho shipping companies trading there havo found it nooossa-ry to steadily augment their fleets in order to keep pace- witli what has b«n going on. It has been realised by the respective boarda of directors that an immense- amount of fresh construct/lon will hatvo to bo undertaken if tho volume of business now offering is to be handled satisfactorily. HIGH RA.TES TO CONTINUE. Tho opinion is therefore, unanimous in shopping circles that not only will tibo present high freight rates continues but Hiai a further advance will tako plaoo boforo long, and shipping companies all over the world aro rogmKng their prospects with eonsidorablo optimism. Up to 12 months ago it waa tho oußtom for ship owiifre to oiiter into s-liarp competition with one another to obtain tho moro important coittracta, and iiuxr attitudo thou was tliai tDio larger tho business tho tower tho freights. A complete reversal has recently tnfocm place in this policy, and, with shipping tonnage, Fca.xer than it has been for a long time liast, ship ottTOrs ajo now inclined to inoreafso thoir freights proportionately wttih the amount of business offering, in tho bnlieif that there is r.o need for them to accept long timo ohartcra at current rotes in view of tho strong probability of an improvement in tiio market hereafter. The opening of tho Panama Carnal next year will undoubtedly grvo a great fillip to the shipping industry a.H over the. world, nrccißoly to what extent no one am predict, but there can bo no doubt that tho effect of tho opening of this waterway will bo enormous, and preparations in the meantime, groat as they will bo will not find the shipping companies in a position to tako full advantago immediately of tho situation that will l>o created by tho opcmnig of tile now meanH of communication between fcho Pacific and tho Atlantic Oceans. Fresh roirtcs will be opened up and additional ports brought into being, all of which will call for freeh tonnage. > WORLD'S SHIPPING AFFECTED. Possibly tlie regular use of tho canal may not take placo quite as soon as it is anticipated at present, but there can bo no doubt that within 12 months of the opening of tlio waterway tho world's shipping tr.iio will havo boon vitally affected There aro somo nfio are apprehensive that English ship-owners will suffer from the approaching chango in conditions, but those who know most of tho subject do not participate in these fears. On tho contrarv. it is felt that tho prosperity of tho ship'ping trade of this oountry will derive substantial benefits if tho now situation is grappled with at the outset. The Royal Mail Steam Packet Company will bo most immediately alfeclod by tho cponing of the Panama Canal, and the directors of that, great undertaking hnve already taken steps to tlurivo all possible bwiofite from the increased opportunities whioh will bo presented to them. But even that company i« unable- to state any moro than in general terms what will bo tho precise state of .ufairs lo bo faced. All the directors know is that tho present shipping lioom will mnko further progress during tho next 12 months', and probably continue to do so thereafter, and that the shipping industry in likely to bo more prosperous durintr tho next "few years than ever lieiorc. To this mnv ixs addod the fact that a taom in fhippin" means activity in nearly every other industry, and while it is admitted* that sooner or later tho amount of new tonnagn limnolnxl will put an end to the present high rate of freights, thero is no probability of any reduction for o. considerable period. DIFFICULTY AT CARDIFF. Tho Lick of tonnago at Cardiff is wriously hampering the ffcutli Wales coal trade it is recognised by all tint tho tonnage difliculty is bound to oontinuo for some time and tho manner in which shippers of coal' have paid increasing rates of freight mav be regarded as evidence of the demand for coals being of a good character. Undor tho influence of higher freights moro tonnago is coming forward, and returns show that tho coal shipments comparo favourably with tlioso of lost year and arc expanding. It will naturally tako somo time for tlw demand to reach the level of increased output capacity of the collieries, and until tho balance of supply and demand is reached stocks must oontinuo heavy, with prices ruling at easy figures for "prompt shipment. Advices from the Continent idicate thai tlio coal trade tliere is exceptionally strong, and with n. trade boom in progrcs-i local collieiy-owners are convinced tliat it is only a question of a lifctlo timo and the surmounting of the tonnago difficulty boforo Sooth Wales will again share the general prosperity.