SLUMP IN SHIPBUILDING

Waikato Times, Volume 94, Issue 14777, 17 October 1921, Page 4

SLUMP IN SHIPBUILDING

The quarterly shipbuilding statistics issued by Lloyd's Register are always of - value as affording an indication of the prosperity or otherwise of the shipping trade in particular, and of commerce generally. We printed recently a brief message stating that Lloyd's Register's returns show that the mercantile tonnage actually commenced in the United Kingdom during the quarter ended September 30 amounted to only 51,353 tons, a decrease of 455,000 tons, as compared with the last quarter of 1920. In other words, the tonnage of ships on which work was actually started during the last three months was about one-tenth of that of the last quarter of last year. The cable message gives no particulars of the merchant tonnage returned as being under construction at the end of September, but it is safe to assume that the figures are very little different from those of the previous quarter, and that the total includes a very considerable amount of tonnage on which work was suspended owing to the decline in demand, and on account of the coal strike and the joiners' strike. The merchant tonnage "under construction" on June 30, 1921, amounted to 3,530,047. tons, a reduction of 269,000 tons, as compared with the corresponding quarter of last lear. The tonnage on which work was suspended amounted to 735,000, and the tonnage delayed in completion was 440,000 tons, a total of 1,179,000 tons, equal to one-third of the whole of' the 'tonnage "under construction." Whereas in 1913, the average tonnage completed during each quarter was over 23 per cent of tha total work in hand at the beginning of the quarter, the corresponding figures for 1920 fell below 13 per cent. There was a still further reduction during the first six months of this year, the output for this period having fallen as low as 8* per cent. There has been a continued reduction in the tonnage commenced. In the March quarter of this year the reduction amounted to 113,000 tons, in the June quarter it was 224,000 tons, and there was an even greater decline in the September quarter. The tonnage actually commenced during this quarter was about 1£ per cent of the tonnage in hand at the beginning of the quarter. The slump in building is due to the disappearance of the economic demand for s'hips. After the armistice the trade of the world was crying aloud for ships. It got the ships, many more than it has needed. The annual statistics recently published by Lloyd's Register show that of the total world's steam tonnage of 54,217,000 tons, there is, eliminating wooden ships altogether, 11,703,000 tons of shipping afloat more than there was in 1914, notwithstanding the amount lost during the war. Vessels on the register of over 25 years of ago represent 5.757,175 gross tons, of which 4,055,847 tons are owned abroad, and 1,704,328 in the United Kingdom. If for the purpose of estimating the effective world's tonnage, these arc disregarded, we arrive at an increase of 5,945,825 tons over 1914. Notwithstanding these figures, there is laid up in tiic world's ports to-day shipping aggregating over 10,000,000 tons. Two years ago the gross freight earnings of British shipping were estimated at £350,000,000 to £400,000,000, while to-day the chairman of an important line assesses them at about £60,000,000 to £70,000,000. Thus, in addition .to the all-round heavy decreases in British imports and exports, there is a very decided slump in "invisible exports." The grave decrease in shipbuilding commenced during the last quarter indicates the very unfavourable outlook for the immediate future of the industry, and until there is a marked revival in the trade and commerce of the world the outlook will continue bad.