SHIPPING LOSSES

Southland Times, Issue 24368, 24 February 1941, Page 5

SHIPPING LOSSES

Problems Facing Britain (United Press Assn.—Telegraph Copyright) (Received February 23, 10 p.m.) LONDON, February 22. Directly and indirectly in both the commodity and stock exchange markets the effects of the shipping problems are increasingly evident. Repercussions are widespread. It was revealed this week that the present output of the cotton industry may be halved as a result of the curtailment of raw material supplies. The Egyptian Government has announced a Bill to reduce the Egyptian cotton crop and the United Kingdom is strenuously endeavouring to prevent chaos in the industry. The labour released will be transferred quickly to various armament works.

Tin and rubber markets, which reflected the fear of shipping difficulties, have been encouraged by reports that the United States is willing to provide an adequate tonnage to deal with the accumulation of tin and rubber shipments in the Far East for America. This, in turn, would ease the position in other trade spheres.

The Manchester Guardian, summing up the shipping situation says:—“British, Allied and neutral losses from enemy action during the war amount to 4.635,300 tons. The merchant fleets of the United Kingdom, the Dominions and Hong Kong amounted to 21,000,000 tons before the war, of which only about half was available for traffic between the United Kingdom and overseas countries. The German occupation of western and northern Europe and the war in the Mediterranean still further reduced the fleets’ carrying capacity. The convoy system, the partial closing of the east coast ports, and the transfer of tonnage to military purposes also diminished its effective use.

“Our mercantile fleet received an additional 10,500,000 tons through absorption of our allies’ fleets, but much of this was employed in trading with the United Kingdom before the war The United Kingdom and Dominions’ shipyards cannot adequately replace lost ships readily. Relief can come only from the United States. The coming struggle at sea might not involve a critical danger for Britain if the Lease and Lend Bill permitted the transfer of over-age American ships, which total about 4,000,000 tons. United States launchings increased from 160,000 tons in 1915 to 3.580,000 tons in 1919. There are signs that an equally spectacular expansion can be expected soon.” Friday’s closing prices were: Rubber: Para 131 d per lb; plantation smoked, 12 15-16 d. Cotton: Spot, 8.56 d per lb; March. 8.27 d. Turpentine 68/6.