Australian Shipping

Hokitika Guardian, 10 June 1921, Page 1

Australian Shipping

IN PARLOUS CONDITION

SYDNEY, June 1. The condition of the Australian shipping trade, so far as it applies to overseas is at present causing the shipowners acute anxiety. Despite the fact that reductions were recently made in the rate of freight between Australia and •Europe, there has been no increase in the amount of cargo shipped, and the shipping position generally lias not. improved. Practically no general cargo is offering for shipment and when the transport of the recent great wheat harvest is finished, shipowners will be faced with a crisis ns serious as they have ever experienced in tha Autralian trade

This, of course, is one result of tlie world-wide industrial and commercial depression; but the majority of shippers in this country declare that the general position in Australia is made worse by the high rate of freights here, as compared with other parts of the world. Rates have fallen, but they are nowhere near the pre-war level yet. A careful analysis of the various rates shows that the average is fully 220 per cent, greater than the 1914 average Business people here insist that, until the rates do fall to a reasonable level, the trans-ocean trade will languish, so far as Australia is concerned. Australia is almost wholly in the grip of the Shipping Ring, and that is why freights continue so high here, while they have fallen so much where ordinary competition governs conditions. Australia’s one hope is now the very considerable fleet, of cargo-carriers owned by the Commonwealth Government. This line, in the past has attacked and been attacked by tho combine. But now and for some, time past, the Government line has l>een working amir ably with the combine, and charging the same rates.

Tt is believed, however lhat, in response to public pressure, the Government line is about to announce a sweep, ing reduction in freight rates. This will force the combine to follow suit otherwise the Government ships will secure all the limited amount of cargo offering. Tt is understood that, while in London, sjyeeial attention will be given to this matter by Mr Hughes whose pet creation this Government line