ORIENT COMPANY

Poverty Bay Herald, Volume LXI, Issue 18591, 29 December 1934, Page 5

ORIENT COMPANY

SHIPPING DIFFICULTIES

INTERFERENCE WITH TRADE

LONDON, Dec. 18.

Mr. Irvine Geddcs, who presided at the mooting of the Orient Steam Navigation Company, Limited, said: '‘ The year's result is not so good as I should wish. Until the operating profit expands and shows a reasonable return on capital and ships, which it docs not do to-day, we cannot pretend to be satisfied. The rise in the price of wool last year had an immediate response on our first-class earnings, but we need a rise in the price of other primary products to find full employment for our ships. The great effort‘made by Australia to meet her commitments in this country had tho effect of producing an almost embarrassing plethora of homeward cargo, particularly during the applo season, and although thero has been some recovery in outward business, we requiro a very large increase before art approach ig made to balanced trade.

“The shipowner in the Australian trade has been specially penalised this year through the sudden cancellation of wool sales and the restriction of meat exports, and will be further damaged if tho threatened embargo on meat is enforced. The full effect of thoso actions may not bo evident, but when you consider that the movements of a ship have to be arranged many months in advance of her loading date, any sudden or violent curtailment of cargo involves the owner in heavy expense. “There appears to be no real sign of permanent improvement in the general condition of all shipping, nor can thero bo until world tonnage bears a closer relation to tho needs of world trade. Tho problem of carrying chilled meat in existing ships is difficult and costly, involving demolition of existing insulation before rebuilding. If, however, chilled meat is to bo an integral part of Australia’s export this expenditure will have to be faced. We contemplate making provision in the Orontes and Orford at the time their passenger accommodation is being remodelled.”