SHIPPING DEPRESSION.

Press, Volume LXIII, Issue 18894, 8 January 1927, Page 18

SHIPPING DEPRESSION.

HARM OF HIGH TARIFF WALLS

General conditions in ihe shipping industry throughout the world during the past year ha-ve been difficult. The depression has continued and deepened (states "Shipping and Commerce o; Australia V The cause remains the same —the existence of more ships and fewer cargoes than before the war. During the last twelve mouths there has been an increase in the steam and motor tonnage in the world of 291.561 gross tons, and a. decrease in the sailing tonna-ge of U5,609 tons, making a total net increase of 14-.',952. The countries showing the largest increases were Italy and Norway, where the increases amounted to -11,969 tons and 161,268 tons respectively. 0i the vessels under the United States flag there was a decrease of 198,719 tons, due to the large number of vessels which were sold for break-ing-up purposes. The decrease in the vessels registered in the United Kingdom amounted to 40,914 tons, as compared with an increase of 334,873 ton 3 during the twelve months ended June, 1925. Five Million Tons Too Many. World tonnage at the end of June, 1936, amounted to 64,754,370 tons gross, compared with 64,641,418 tons a year ago, or compared with 47,404,000 tons in 1914. This show* that there are some 17,000,000 tons more shipping in the world to-day than in 1914, equal to an indrease of 38 per cent. Of course, the excess of tonnage for general cargo and passenger purposes would not look go formidable if the total tonnage of certain types of vessels, such as tankers, trawlers, tugs, lake steamers, and other craft which do not compete for cargoes, amounting to some eight million tons, and laid-up tonnage, were deducted. Even allowing for this large percentage, there is at present probably five million tons of shipping on the market more than the world can employ. Th 6 depression in the shipping industry is reflected in the latest shipbuilding returns, ana indicates that there is a general reduction in shipbuilding activity throughout the world. Such conditions through which shipping is passing, and British shipping in particular, naturally do not encourage shipowners to consider the building of new ships. There is a general tendency to protect local industries, and all nations have erected high tariff walls. The general effect of the erection of these barriers has been to reduce • enormously _ international trade and reduce cargoes. Giving his view on the position, a well-known shipowner said: International shipping depends for its consolidation more than on anything else on a healthy economic situation. No adequate employment of the world's tonnage is possible so long as tho economio crisis remains acute. Moreover, excessively high tariff walls are bound to prevent the establishment of normal economio relations between the various countries.