Pacific Shipping Trade.

Hokitika Guardian, 5 January 1922, Page 4

Pacific Shipping Trade.

BRITAIN’S BOLD BID

SAN FRANCISCO December 8

Some of the leading American ship,ing companies are becoming (greatly alarmed at the extraordinary enterprise on the part of rival companies with headquarters in Great Britain, who have commenced waging a determined war to obtain tlie cream of the Pacific shipping trade and the latest phase of the situation is an announcement that the British steamship lines have decided to answer the challenge of American shipowners and the United States Shipping Board forecasting a period of cheaper ocean freight rates in store. The opening announcement which startled New York managers of shipping Lines was that the rates from England to the United States and Canadian Pacific Coast cities will be cut in half so that a ton of British goods may be shipped 9000 miles through the Panama Canal and delivered at Pacific Coast points for 5 dollars at the present rate of exchange. This surprising docision will affect Ameridan transportation in manifold ways for although no great number of vessels flying the United States (lag are in operation on the route indicated for the cheap British rate it will undoubtedly hurt the business of the ! trans-Atlantic and coastal steamers and; the trans-Continental railway lines. It is impossible at the present time for the British manufacturer to get his products to the Pacific Coast of America at anything like the price to be inaugurated. The five-dollar fate figures at 2 cents —a penny—per ton for 30 miles which American shipowners regard as “almost ridiculous.”

This drastic action is said to have a triple motive. First the British shipowners do not believe that United States vessels with their highest operating costs can afford to meet the price they have fixed; second', they believe that by making such a rate they will be able to get eastbound business from tlie Pacific Coast and the Western States and do much to nullify the operation of that section of the American Merchant Marine Act, otherwise known as the Jones Act, which gives preferential rail rates to export shipments billed on American vessels across the Atlantic; and, third, the desire of British manufacturers is to recapture tlie valuable Western Canadian markets, which have never been fully regained since the war. ENGLAND GREATLY ALIVE.

An indication of how cheap the rate has been made is given by a comparison of the 6000-milc voyage rate on coal from England to South America which is about 4 per cent .higher than the one shortly to be adopted, this despite the fact that England always has endeavoured to give exceptionally preferential treatment to export coal.

It is understood that British companies already have thoroughly canvassed the field for business in the Pacific from the United States and Canada, and have obtained assurances of business at the low rates that will keep several steamers busy for more than a year. It is in the coal business that Great Britain is showing some commendable enterprise in outstripping all competitors, even American and Australian colliery proprietors being unable to meet the competition of South Wales.

In the course of an interview with Mr Blair of the J. J. Moore Company, one of the biggest coal importing concerns of Western America, it was stated at their San Francisco headquarters that Cardiff coal-owners are making enormous headway in securing the lion’s share of supplying coal both on the Western Coast of tho United States and also capturing the business in the Hawaiian Islands to the exclusion of American and Australian competition. Mr Blair stated that Cardiff steamcoal cost at present 25s f.o.b. Cardiff, and freight offers have been at the rate of 15s per -on to San Francisco from the South Wales port. “This means,” added Mr Blair, "that Welsh coal can be landed in the port of San Francisco for approximately 8.25 dollars on the present basis of exchange. I have notified our .Australian headquarters that the Cardiff coal business cuts the Australian competition very considerably, as the lowest we can land the coal from Newcastle, Australia, is nine dollars and twelve and one-half cents per ten .

“A. hid was last week opened.in Hone lulu where the Australian coal was quoted at nine dollars per ton. Here again we were easily beaten out by the Cardiff coal operators.” Some idea of the inroads of the South Wales enterprise may be judged by tho fact that, according to Mr Blair “at the present moment there are five steamers carrying large cargoes from Cardiff to San Francisco.” These vessels are conveying some 25,000 tons of Welsh steam coal altogether or some 5000 tons apiece. In addition to this Mr Blair stated that three other cargoes of coal from Cardiff are on their way to Honolulu. It was mentioned further that the steamship lines were prepared to bring further supplies of coal to Pacific Coast ports at fourteen to fifteen shillings. AUSTRALIA MUST REDUCE. Asked whether the Australian operators were endeavouring to meet this stiff competition from Cardiff Mr llkiir said : “Unless the price of Australian coal is reduced it would appear that the Australian export coal business to all ports on the West Coast ol North Ameriqa, from Callao in Peru to all points north, will go to Cardiff coal.” Questioned as to the attitude of American coal-owners Mr Blair replied that one of the big sources of supply for domestic coal was in Virginia and here the prices had dropped to 4.75 dollars per ton of 2000 pounds f.0.0b. the Virginian shipping point in Norfolk. “Even paying the increased freight to American ships,” continued My Blair “these Virginia coals can be delivered at Pacifio Coast ports much cheaper than the Australian coal.” Summing up the situation Mr Blair, said : “All American coal importers are now directing their attention towards working assiduously for Welsh opal, wilieli has the quality and the price.”