SHIPPING FREHIGHTS.

Manawatu Herald, Volume XXXVIII, Issue 1554, 23 May 1916, Page 2

SHIPPING FREHIGHTS.

A PARAGRAPH in to-day’s issue states that the White Star line 1 made last year the enormous profit of .C 1,008,285, this despite the losses it may have suffered through the war. In view of the high freight rates now prevailing which are bringing in a golden harvest to the shipping companies, the following extracts taken from a recent issue of a British newspaper, The Statist, are of interest : “Bor the purposes of the war the Government has commandeered a substantial portion of the British mercantile marine. It is calculated that the amount of tonnage so taken up represents about 35 per cent, of the whole 1 of Ihe British mercantile Heel. But beyond the commandeered ships the Government has requisitioned a large number for the carriage of foodstuffs, and it is calculated that altogether the Government has taken up something like 50 per cent, of the total British mercantile marine. And the recent additional requisitions have brought about an unparalleled rise in freight rates until at (he present time* some are over A,OOO per cent, higher than they were before the war, while the average rise in Homeward rates is in the neighbourhood of 800 per cent . The following figures show the Homeward freights for 1014, 1015 and 101(5, and the percentage increase l over three years : Prom Bombay, 18s, (ids, 504 per cent. ; River Plate, 13s (id, (ids, 150 s, 1,011 per cent. ; Atlantic ports (cotton), 31s 3d, 00s, 280 s, TOO per cent. ;

(lilto (grain), Os, 33s 101(1, Bls 31d, 803 per c('iil. ; average 17s lid, 51s, I5!)s Id, 757 |ic*f coni. The corres1X >nd ill” - lie'll res for (lie mold hs (if Pebrnary in the three years give even more sirikin**- results : Homeward freight : Bombay His sd, 575, 1355, 7IS per cent. ; River Plate, 11s (id, 72s (id, 1555, 1213 per cent.; Atlantic ports (cotton), 255, l!(5s, 2705. !)S(I per cent. ; ditto (grain), 7s lid, 15s 2d, 80s 3d, Dll per cent. Oultvard freigt hs, C'arilT to Port Said 7s 3d, 30s, 80s, 1003 per cent. ; Cardiff to River Plate, 11s 3d. 11s, 20!) per cent. The Statist's estimates of the gross and net earnings of shipping; companies under the increased freights show the enormous amounts involved in the shipping trade and (he huge growth of the profits due to the inflated rates ruling for transport of goods. One of the tables was that of the estimated earnings and profits of British shipping in 101 ti, in comparison with 1013, on the basis of existing freights, which were set out thus (in millions) ; Increase lOlti 1013 per £ £ cent. Cross earnings 110 127 223 Pxpenses 100 10/ 50 Net pro tits 250 20 1150 cess profits tax, 50 per cent. IP> N'el pm til 135 20 575 Capital 200 102 4 Dividend 071 10A 513

As 1 he effect ol' those increases is not oonlinod to higher prices for imported goods, but. has iiioroasod the prices for competitive Homo made or Homo grown goods, the iiioroasod freights carry with thorn mil, only an immonso incroaso in tho prolits of shipowners, hut a corresponding addition to tho profits of farmers and persons possessing large stocks of foodstuffs, of raw material, and other food imported before the recent advances. Thus, early in October the English average price of wheat was 53s 5d per quarter ; and it is now stis 7d, in spite of the fact that the world’s food supplies are abundant. As matters stand at present, leaving out the possibility of any additional rise in freiglhs bringing still higher prices of produce, the advance in freight rates since (he war began will impose a burden upon the British people of at least £300,000,000, apart altogether from 50 per cent, of the profits of shipowners which will be paid into the Treasury ; while, including the 50 per cent, excess profits tax, the direct and indii’ect cost to the consumer of the rise in freights since the war began will be something like £-100,000,000.