JAPANESE SHIPPING DEVELOPMENTS.

Taranaki Daily News, 20 November 1920, Page 9 (Supplement)

JAPANESE SHIPPING DEVELOPMENTS.

IS A RATE WAR POSSIBLE. Sydney, Sept. 21). ■Shipping developments in Japan are beiiiLT watched with a good deal of interest by many people in Australia. It is believed that events there are already casting their shadows into the Southern Pacific These developments may interest New Zealand equally with Australia. As everyone knows, Japanese shipping companies, having enjoyed during the war period prosperity without precedent in shipping history, in .the past year fell upon evil times. Their*- has been a feverish building of ships ever since the war ended, and so many have been launched that the shipping tonnage of the world to-day is actually more than it was in 1014. The various Japanese companies, which had greatly increased their fleets, were suddenly affected by this condition. Tn addition, there was a trade slump in Japan, and not only was there less carrying per ship to be done in the world, but the Japanese domestic carrying trade had actually decreased. The Japanese harbours were full of idle, ships. In'the meantime, although the Japan-, nese steamers .were idle, freights between Australia and Europe and America have remained at a level set when the shipping companies were enjoying war dividends. The Shipping Ring has held a monopoly. It was not to be supposed that (hose Japanese steamers would be allowed to lie idle, and there have been rumours of something pending. Now comes the news that the Nippon Yusen Kaishn, the biggest Japanese shipping company, is absorbing most of (he other Japanese concerns, and (hat a big Japanese shipping combination may tackle the British Ring and fight for freights. It was a development certain to occur sooner or later, but most people thought the attack would come from the vastly swollen mercantile marine of America. A freight war between British. American, and Japanese companies may have all sorts of side-ways and complications not to be foreseen now; but it looks at present as if these Dominions have much to gain and very little to lose from such a development. Shipping men in Sydney believe that the Japanese amalgamation is full of menace to the industry, and they are watching events with apparent uneasiness.