A FALL IN FREIGHTS

Dominion, Volume 12, Issue 170, 12 April 1919, Page 8

A FALL IN FREIGHTS

SIR A. BOOTH ON NORTH ATLANTIC RATES. In nil interesting statement which has been made to Mr. Edward L. liobson, of (ho "Philadelphia Press," Sir Alfred Booth, chairman of tho Cunard Steamship Company, points out that "as every ono expected, tho announcement of the early release of shipping from Government control lias been rapidly followed by a reduction of freight rates all over the world." ; "This reduction," Sir Alfred continues, "is due, of course, to tho fact that tho Government shipments are rapidly falling off ill volumo, more space is now available for general merchandise." This is especially true with regahl to East-bound trallie across tho Atlantic from tho United States and from Canada. Bei'oro the armistice was signed Government shipments of one 6ort or another occupied about 95 per cent, of the total nvailablo shipping space. General cargo rates were therefore necessarily luxury rates, Tho problem for tho shipowner now is to find commercial cargo to take tho ulacc of tho Government cargo. It was impossible to expect that business on anything lilto tho scalo required could bo stn'rted at the rate of about 4115 per ton which was in force. Tho British shipowners interested in the North Atkntio trade felt that an immediate reduction of rates must be made to a level which would encourage merchants to enter into contracts that would such a mcasuro of stability as would give confidence to the merchant, otherwise their 'ships would cross tho Atlantic with little or no cargo beyond such remainders as tho Government might' still have in hand, and the process of commercial reconstruction would be indefinitely delayed." They therefore decided to i'educo their East-bouiul rates at. one stroke to about £4 per ton—a level at which they believe real business can be done, while nt tho same time the return to tho ship will be sufficient to prevent tonnage leaving tho Nortn Atlantic to seek moro profitable business elsewhere. "Tho reduction hn3 been made, Sir Alj, frod conoludes, "not in any spirit o; hostility or opposition to the new American mercantile marine, but solely w stimulate the business which Amenc-i and Great Britain need so much to nil tho gap left by the cessation of war activities. Steps are be.nff taken to « tablish direct communication between no British lines and the American Shipping Board in order that what is now a common interest may be iuitheiedi ■ best possible way, by co-operation lather than competition."