The Hawaiian gazette., 1916-02-29
consul WRITES ON I
. freight SITUATION.
; y , g.. 4NTi Et.'j H'Gs
Anderson of Hongkohg Says the
~ Rateshto, East Coast :
Also Are Up

Although freight traffic along some
routes in the Far Eastern trade is not
heavy, rates ON practically all lines be.
tween the Orient and Europe and Uni.
ted States again have been advanced,
according to letter from Consul Gen.
eral George +. Anderson of HongkOng.
Since the letter was writtea, freights
from HOngkong TO Hawaii have ad.
vanted from $3.50 ton to $21 ton
and O twenty per cent increase, effect.
i've April is announced from japan
ports. The letter, which follows, In
part, gives general view of the
freight situation in the Far East:
| Formal announcement by the con-
ference lines has been made of an nd
vance of twenty per cent in the
freight rates between the Far East and
\ he Eastern coast of the United States
| by way Of the Suez Canal, aud ship.
| pers have been informed more or less
formally, by the Pacific conference
| ines, that n similar advance will short
| ly be effective for transpacific trnfi,.
This already has eOma.) While the
temporary closing of the Panama Canal
is said by shipping people to have hal
some influence upon this increase. the
plain facts seem to be that ships are
needed in other parts Of the world 10
such n degree that they will be taken
from the Far Eastern run unless the
rates announced can be obtained and
ships be filed at such advanced rates.
Tonnage Needed For Rice Crops E
1t is known that there are unusually
large rice crops in IndO-China, Siam
and Burma, and the demand for ton.
mage for the movement of this crop
las stiffcned freights both loc9lly ana
in world service. There is, in fact, no
cement in the situation promising any
weakening in the demand for vessels.
Norwegian shipowneTs, who in some
respects reflect best the general pc
ition of shipOwners the world over,
are refusing to let their ships on less
than two years tine charter, at rates
which are very high, to say the least.
While, for instance. the Nippon Yusen
kaisha, the chief japanese line con.
rerned in European and American
trade, is maintaining service of
| eleven liners and fOr additional ships,
together with six other ships which
return to the Far East by way of New
York, there is scarcity of tonnage
FOR Europe at present, and many com.
moditles which can move generally at
comparatively low freights only are
held up in Far Eastern ports.
Buying Power Of Chinese Reduced
The most seriUus phase CT the situa
ton Is the effect the high rates are
having upaRI business generally A
very large share of Chinese produce
for the United States-eoJ eds moderate
IN value for their bu'k-raw materials,
particularly Of the class in which Ger
man firms have succeeded in building
up a god trade in recent years, can
not be moved under present freight
rates. This not only reduces exports
from the Far East, but at the same
time reduces the buying power of the
Chinese people materially, and affects
import trade just as seriously.
Under normal conditions this situa
ton would right itself in time, hut
at present no reduction in freight rates
can be justified here, so long as there
IS demand for vessels elsewhere at
high rates. The situation is particu
larly unfortunate for Anne. lean trade,
which consists so larg ly Of goods in
both import and export lines in which
freight rates are dominating factor
The export trade in -four. lumber, and
machinery, particularly, will be af
fected.
Philippine Industries Affected
Various lines OF trade in the Far
East itself are being seriously hamper
ed by present conditions. As result
OF the difficulty in securing transror-
tation, the rattan and almaciga gum
industries IN some parts of the Philip
pines are reported seriously eI .barrass
ed, and many of the natives face fnan
cial destruction, Shipments of beans
and similar goods from North China
and Japan to Europe are practically
impossible at present rates. The ex-
port of coal from Japan and Indo.
China is reduced fully ten per cent by
the high cost OF freight alone.
Hongkong Stewards Working
The large shipyards Of Hongkong,
under certain conditions, can build
ships as cheaply as any yards in the
world. Usually the necessity of OBJ
tanning much of the steel plate work
from abroad, since steel is not pro-
duced here, serves to counteract many
Of the advantages the industry has 9th
erwise in Hongk ong, but in spite of
this and the fact that much of the
steel now obtained in Hongkong is
bought at high freight rates and in
competition with American yards, the
Hongkong yards are now building
ships In competition with the ship
yards of Europe, and are building them
as chCa9lV Ds the chaaneSt