TUESDAY, SEPTEMBER 26, 1916. SHIPS AND FREIGHTS

Dominion, Volume 10, Issue 2886, 26 September 1916, Page 4

TUESDAY, SEPTEMBER 26, 1916. SHIPS AND FREIGHTS

-1-E'G statistics contained in the KisW volumes of Lloyd's Register of Shipping throw some valuable light upon the effect of the war upon the world's shipping. This is a matter in which every part of tho Empire is directly interested. The extremelyhigh freights and of ships have created one of the most difficult problems whioh the Government of New Zealand has had to grapple with, and are in no small degree responsible for the inorease in, the cost of living, which is a constant topic of conversation in almost every home in the Dominion. According to the latest figures the total British tonnage (steam and sailing vessels) is 20,901,989. > The corresponding total for 1915 was 21,274,068, the difference representing the losses incurred by war and maritime risks and not yet made good. The activity of the German submarines is only one of the many causes responsible for tho enormous rise in freight rates. The principal cause is the 'vast amount of tonnage requisitioned by the British Government for war purposes. Scarcity _ of labour, increased cost of materials, and restrictions- on shipbuilding, must also be taken into In July, 1914, the British, colonial, and foreign steamers on Lloyd's Mgister represented a tonnage of 24,809,000, ,to which should be added 800,000 for now tonnage. On the basis of this total the Economist arrives approximately at' the present available tonnage by making the following deductions: Net tonnage. War losses 1,520,000 Marino losses 550,000 Imprisoned in Black Sea 184,000 . Enemy steamers 3,320,000 Requisitioned 6,927,000 12,151,000 This reduces the available tonnage for commerce from 24,809,000 in July, 1914, just before the war began, to 13,158,000 at the present time. In view of these facts and figures it is not surprising that Ireights have jumped up at an unparalleled rate. Tho freight from River Plate to Britain, for instance, ■in July, 1914, was 15 shillings. It rose to 355. in December, 1914, to 50s. in June, 1915, to 120s. in December, 1915, to 160s. in July, 1916. The extraordinary rise which took place about the middle of last year was due to the operations in the Balkans which compelled the British Government to requisition ' a vast quantity of additional tonnage. The upward movement in freights was so sensational that the Government found it necessary to take certain measures for controlling the shipping industry. . The price of tonnage naturally increased in sympathy with the increased freights. The best way to give an adequate idea of the extent of this increase is to quote an instance mentioned by the Economist. A small steamer of 350 tons gross, built in 1904, and suitable only for the coasting and Continental trade", was recently sold for £15,000, which works out at over £40 a ton gross and £100 a tori net. In peace times a sale at £12 a ton would have ■ been a good bargain for her owners. The Economist is of opinion that the shortage of tonnage is not likely to bring about such a clangorous crisis as seemed-possible a year ago. Owing to the steps .taken by tho British Government to grapple with the extraordinary situation, greater economy has been shown in the employment of tonnage, and the upward movement of freights has received a check. It is satisfactory to find that something is now being done to make up for lost time in tho shipbuilding industry. The. pressure of.Admiralty work has recently been reduced, and some of the yards have peen given a chance to turn their attention to the construction of merchant ships. It is. expected that the output of mercantile tonnage will show- a considerable increase during the remainder of the present year. There is an abundance of work waiting to Jje clone. British shipbuilders are doing their utmost to make ready for tho coming trade war.- The tremondous energy which they have thrown into their war work is likely to bear good fruit. Great improfoments have been effected both as regards machinery and organisation, and it will bo possible to build merchant ships more rapidly in tho future than in the past. Therois certain bo ba an unprecedented shipbuilding

boom as Goon_ as the war is over, and preparations are now being made to meet the enormous demand for new tonnage. Tho war haß given the United States, Japan, ajnd other countries an opportunity for developing their shipbuilding industries, and it is stated that Germany is straining every nerve to augment her mercantile marine. It issaid that tho Hamburg-Amer-ica line is constructing 21 new vessels and tho North German Lloyd 19—nearly all of thorn: big ships. One of the vessels being built for the Hamburg-America Line is of 66,000 tons, another is of 32,000 tens, three others are of 22,000 tons each. The North German Lloyd is building afc Danzig two ships of 35,000 tons, two of 16,000 tons, and twelve of 12,000 tons each. It is well to have the assurance of Me. Asqutth that the Imperial Government is determined that the British "mercantile marine shall not in future have to cope with systems of unfair comfetition which Germany may devise. ]or the protection of their navigation the Allies are, he says, to agree on special conditions to be imposed on tlie ships of enemy Powers. This course has been decided upon in order to prevent Germany from gaining an advantage from the destruction of tho means of industry in the occupied territories and her treatment of merchant shipping. It is probable, also, that one of the ternjs of peace imposed ■ upon Germany will be the replacing from the German mercantile fleet; of part at least of the total of Allied vessels illegally destroyed by submarines.