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World Charter Market Reviewed by EXPORTS LIGHT Unsettled Rate Conditions Discour- age Shipping—Government Orders Rapidly Clearing Away | HIPPING men are the “bears”: in the ocean S transportation field today. A further and ma- terial reduction in rates is what they want and apparently they will continue their efforts until some- thing is done. The export and import agents in- sist that the tonnage supply is now adequate for all needs, especially for the export needs, and that the continued high ocean rates are detrimental to the speedy restoration of America’s foreign commerce. Recent cuts in ocean rates promulgated by the shipping board are said to have been for the purpose of meeting the rate reductions on British ships. If this portends an international rate war the merchant marine situation is in a bad shape. There is hope, however, that such is not the case. The peace con- ference at Paris has decided to appoint a commit- tee on merchant marine which may work out a solution which will protect all flags. Incidentally, it might be well’ to recognize the fact that war con- ditions are rapidly disappearing. The chartering com- mittee of the shipping board has resigned and _ al- ready it is heard that charters taken on neutral ships during the war, at high rates, are proving unprofitable to both England and the United States. A further and probably radical change in the shipping situation may be expected before long. The return of Presi- dent Wilson and Chairman Hurley should bring to a head the problem of settling upon a more definite shipbuilding and ship-operating policy. The maritime world is waiting for some definite statement of policy by the government. Ocean freight rates must be sufficient to pay for the cost of Rates Must operation, the insurance and inter- Pa est on the investment in the ships. if The shipping board granted an in- crease in wage to officers on Amer- ican merchantmen on the first day of the year. Today the cost of Operating an American ship is excessive. It is much more than the cost of operation prior to the war. On this account, if for no other reason, the ocean freight rates cannot go as low as the prewar rates. ‘But today money is obtaining. a higher interest rate and the facilities of marine insurance companies are being taxed to the limit. And, finally, it is well known that the investment in ships today is much larger, ton for ton, than prior to the -war. . While it is possible that further freight reductions will come about, it is unlikely any radical decrease in the cost of ocean transportation will be witnessed. There is ample reason for complaint against fluctua- tions in rates and it is anticipated that such a condi- tion will soon be cleared up. The shipping board gave no prior announcement of its plans to reduce the Costs rates. The shippers insist that they should be in- formed in advance of such reductions that they may | If such a plan can: book their business accordingly. be worked out which will remove the cause of this complaint, it seems assured the shipping people would be better satisfied. The reduced rates on English merchantmen have been in effect some time. During the past month the French made reductions, following the new schedule of rates announced by the shipping board. On general cargo steamships and French passenger vessels from United States Atlantic ports to French ‘Atlantic ports, the rates were reduced from $60 to $41 per ton weight or measurement. The shipping board had been holding to $60 plus 10 per cent prim- age. The general cargo rate on French requisitioned and French or allied chartered steamers is $27, as compared with the $60 rate heretofore maintained. The shipping board has sought to — meet these reductions in rates by American offering Emergency Fleet corpora- Dice tion vessels for private operation to carry freight at fixed rates. For Are Cut instance, it proposed to take rosin from Atlantic ports to Antwerp for $2.80 per 100 pounds, turpentine for $3, phosphate rock to Antwerp for $40 per ton, barley from Pacific coast ports to England for $52.50 a short ton, cocoanut oil in bulk from north Atlantic ports to Rotterdam for $50 a long ton. Various rates were quoted for other voyages, but such quota- tions have not brought the rate quotations on Amer- ican ships gen- erally toward uniformity. It was not long et tee tt he French reduc- Will Return Ships HE 87 Dutch ships with their 980,000 tonnage taken over tions had been made and the reduced sched- ule announced on shipping board vessels that the British came forward with another reduction of 66 2/3 per cent between the United States and England. The old. rate of $3.50 per 100 pounds was thus reduced to $l, and by meas urement from $1.75 per cubic foot to 50 cents. In the British : schedule, cot- ton is given a special rating. The British under President Wilson’s proclama- tion March 20, 1918, are to be re turned at once unconditionally. The war emergency has ceased and more ships are being -finished to bring troops home and move supplies, so that there is no longer justification for holding the Dutch ships. Fur- thermore they are sorely needed for cargoes of food and goods in Eu- rope. On Feb. 2, the war trade board, after conference with the shipping board, announced the pro- posed action and explained that the transfer would bé made just as fast as ships finished their present voy- ages to American ports. Of the 87 Dutch ships seized sev- eral were destroyed by enemy action or storms while in the service of the United States. Under the agreement reached with the Dutch shipowners vessels destroyed were to be replaced either by money or by ships at option of the Dutch Owners, and liberal rates for the use of the vessels were allowed.