The Evening statesman. [volume] (Walla Walla, Wash.) 1903-1910, 1903-06-24
FREIGHT SITUATION AN ENIGMA

Seldom if ever in the history of the
wheat business in the Pacific north
west have exporters been confronted
with SO difficult a problem as the
present ocean freight situation, says
the OregOnian. AS the farmer pays
the freight, the uncertainty which
now prevents the exporter from TAX
ing the usual steps to secure the ton
mage required for new crop loading is
also a matter Of much concern to the
man who grows the wheat. In no
other WheatgrOwing section of the
United States does the Oceanfreig ht
rate absorb so large a proportion of
the value Of bushel of wheat as is
the case from Pacific coast ports, and
at no other ports are the fluctuations
so great. From the Atlantic seaboard
and the gulf ports where about seven
eighths of the eXpOrtable surplus of
the American wheat crop seeks tide
water. a rate of cents to 10 cents per
bushel TO Europe is unusually high.
From North Pacific coast ports. a rate
of IS cents to 20 cents per buShel is
below the average, and within the
past three years it has been as high
as 81 cents per bushel.
At the present time a reasonable
amount of neW-crOp tonnage could be
secured at % shillings, or 16 cents
per buShel. This is + or cents per
bushel below the average rate paid
for new-crop loading at this season
of the year, and is below the rate at
which some owners will move their
ships. 1t is practically certain that
there will be the usual amount of
wheat to go out of Oregon and Wash
ingtOn ports the coming season. With
this assured and rates so far below
the average. it might be expected
that exporters would display less hes
itancy in chartering ships. And yet,
Notwithstanding the fact that rates
have been humping along on the bot
tom for months. and also that, in de-
spite of the large amount of tonnage
certain to be required, the statistical
position Of freights on the Pacific
coast is the weakest ever known.
With little or nothing of the old
crop to be taken care of. there are
now en- route and listed for Portland.
Puget Sound and San Francisco, 500. :
600 tons net register with a carrying
capacity of about 900 600 tons. In ad-
ditiOn TO this, there is a disengaged
fleet of 40 600 tons capacity lying idle
IN San Francisco, making a total ca
pacity of over 1000. 900 tons already
available for new-season loading on
the Pacific coast. AS there is nathing
in the present outlook to warrant the
belief that there will be to exceed
1.000.0O0 tons Of grain for export from
the three states. the hesitancy Of ex-
pOrters to load up even with what
would ordinarily be considered cheap
ships can be understood Despite this
hesitanCy or Indifference. there is a
slight feeling that perhaps a change
may come. Nitrate freights from the
west coast Of South America. under
normal conditions. are 10 shillings
higher than wheat freightS from
North Pacific ports, but at the present
time this differential has shrunk to
about IS Cd, and all Of the shrinkage
has been at the expense of grain
freights. This condition will natural
~ divert to the nitrate ports tonnage
which formerly sought business in
North Pacific wheat ports. Another
uncertain factor on the bull side of
the argument is the refusal Of many
owners to move their ships at % shil-
lings. AS some owners began laying
up their ships when rates We're 21s Cd
and 80 shillings. they may be less in
clned to move them now at % shil-
! lings or less.
| The tramp steamer is also fea-
ture that must not be overlooked. and
the outbreak of a war Of good proper
tiOns might withdraw enough Of these
modern freight. regulators from COM
mercial routes to help sailing sip
| owners a little. Under any circum-
stances which now seem within the
range of possibilities. high rates. for
the coming season. will be impossible
for more than a brief period De-
| layed arrival Of ships and a possible
| quick selling movement of wheat
early in the season may serve as a
| temporary bracer to the freight mar
ket. but it can hardly be expected to
last. Yet the unexpected frequently
| happens Viewing the situation as a
whole. it never before at a CORE
| spending period left so much depend
ent on the ability Of the exporter to
guess right