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British Shipping Still Suffers AUOQDULDOTOONTEEOODN UU TUEYLLLYT OTT TDL. Shipbuilding Declines—Freight Rates Low — Much Tonnage Idle — Conditions at End of trom Year Capital Agree To Improve ay Labor and. Increase Output = Exports Drop — Im- Ports Grow VENETO CETEPTE INETEEN-TWENTY-FIVE has N come and gone and the British shipping and shipbuilding in- dustries have begun the new year with the same dismal outlook as a year previously. The same difficulties must be faced and the same problems re- main to be solved. A hopeful feature is the endeavor of employers and workmen in the shipyards to co-oper- ate with each other in trying to find more efficient methods of operation, thus perhaps reducing production costs Ed Pe eee Pept & ‘SSAC, (CORD) GATS WERELEE OED RES LATE CaS CARRY’ ESA] PERE (SU: WR PES ee ee! NR My Pe a ‘Statist” Index of British Shipping Freights ee a Index of Freights Between U.S. A. and Western Europe -------- Po tke Average of 1920 Rates taken as 100 fia et pes} et eps Wo i Si a i ——~ PET TP ET TT TT NA ets Bete Ts, | eee pletentadaebef | | oda cd oF et bet SCECECHER EE eee Cer DME errr per eres m x Eo | |= DSSS AS OMRIGReRRRE ere Geass se Ba * AU Ee 9 Pa oe Aha a ee ae ptt Bae Le DOCU E See Geauneee co amence we co HF Be ee BB A eae iis Sie er PECP EERE EEE EP PEE CEP Pre tee = Be See Surplus Tonnage and Keen Competition BY VINCENT DELPORT European Manager, Marine Review The past year has been regarded as disastrous by shipowners. According to Lord Inchcape, 1925 has been the worst year shipping has ever experi- enced. Freights have been unremuner- ative and about 800,000 tons of vessels were tied up in British ports at the end of the year because they could not obtain profitable cargoes. Further dif- ficulties have arisen due to the trou- bles in China which have seriously affected British trade, and the strike of seamen and firemen in Australia any time since 1913. The lowest rates were experienced in August and Sep- tember when the effects of the threat- ened coal strike were felt. Slightly better conditions were experienced since October and the purchases made at that time by the United States were welcome. Disappointment was ex- perienced in the Black Sea when the Soviet government estimated that 1,- 500,000 tons of shipping would be needed to move the large crops which they expected to export. There was a DIAGRAM SHOWING FLUCTUATION. OF OCEAN FREIGHT RATES FOR FOUR YEARS AND ELEVEN — sufficiently to enable them to capture some business from their continental competitors. Little relief is found as yet in the British coal mines, and everyone is anxiously awaiting the re- port of the Royal commission of in- quiry on the economic conditions of the coal trade in order to know if there is any chance of improvement. This report is not expected to be ready before March. The relief offered by the government’s subsidy ends on May 1, and it is hoped that some steps may be taken by them to restore more nearly normal conditions. The freight market has been fairly active during the last three months of 1925, but rates were not such as to yield much profit to owners among whom keen competition was experienced. and South Africa, which caused heavy losses to shipowners. The_ highest homeward freight rate for grain from Buenos Aires in 1925 was 22s 9d ($5.50) and the lowest rate was 10s 6d ($2.55); the rate on Jan. 1, 1926, was about 18s 6d ($4.55). The high- est outward rate for coal from Cardiff for the Near East was 138s 9d ($3.85); the lowest rate was 8s 8d ($2), and the rate on Jan. 1 was 10s 6d ($2.55). Apart from excess tonnage which has caused shipowners to drop their rates to obtain business at any cost, their losses have been increased by the high port charges and stevedoring rates prevailing in British ports. Although there was a fair demand for outward coal tonnage through the year, rates were lower than at 13 enone demand from “India at the beginning of the year, but it sub- sided dbout the middle of February and remained low. The wheat crop in Australia was so large that char- tering commenced in 1924 and rates rose to a high level,.to such a point that steamers came in ballast from the United ._Kingdom. Then competition was such that rates dropped about. 7s ($1.70) at the end of February, and at the beginning of April the fall was about £1 ($4.85). The present crop is considerably smaller than the last and present freight rates are low. Rates in the North Pacific and North Atlantic were more _ satisfac- tory. Trade with South America was of the worst description and a large (Continued on Page 384) Pi