The Daily News. TUESDAY, NOVEMBER 23, 1920. LOWER FREIGHTS.

Taranaki Daily News, 23 November 1920, Page 4

The Daily News. TUESDAY, NOVEMBER 23, 1920. LOWER FREIGHTS.

The recent cabled message from London stating that freights continue to fall, and that the decline for the last six months has averaged over fifty per cent., should cause satisfaction in the Dominion, especially as it stated theie are signs that the downward move has not ended, nor is likely to stop until shipping owners find it necessary to lay up tonnage until the economic recovery of Europe provides more goods for transport. In this matter the law of supply and demand is again asserting itself. The only excuse for the abnormally high freights in vogue during the past five .years was shortage of shipping consequent on the demands for ocean transport connected with operations inherent to the war, and the loss of tonnage by the submarine campaign. To some extent the increased price of labor and materials for shipbuilding, as well as the higher wages paid to the crews working overseas vessels, have affected freights, and will continue to do so, but the large profits made by shipowners testify fo the fact that they took advantage of the opportunity to exploit the public and reap "rich harvests. The ending of the war and the large output of new shipping have now brought abont a partial readjustment of those excessive freights that were never justified, and it is to be hoped that a return to more normal' prices will have due effect in lowering the eost_oJJivin&Jt is ey.eii

possibld that before long there may be instituted a freight war, as Japan seems bent on making use of her largely augmented merchant fleet for which employment at present rates is lacking. There can be no question" that, if the Japanese enter seriously into competition with the shipowners of Britain, America, and others they will force down freights to a more reasonable standard. It .would seem also that the time is at hand when either the Government of the Dominion or the producers should be prepared to purchase ships for carrying on the transport trade of the Dominion. It is expected that several million tons of new shipping will be completed in Britain in the course of 1921, so that the outlook is decidedly better than it has been for, some time past, Jhough it is probable that high freights will die hard.: In the case of the Dominion, ocean transport is of vital importance both for marketing produce and receiving requirements, so that an adequate provision of ships and moderate freights play a great part in our economical system.( Any relief from the high -prices that have ruled of late will be very welcome, especially in view of the depreciation in value of some of our products, and until freights reach bedrock it will be impossible to accurately estimate the value of our exports. Whilst it is not advisable to exhibit undue optimism, present indications certainly point to a decided improvement* in the outlook as regards shipping an<* freights.