The Sunday telegram. [volume] (Clarksburg, W. Va.) 1914-1927, 1916-03-12
HIGH RATESSPOIL
TRADE IN THE
FAR EAST
European War Has Taken
Away Many Vessels, Says
Report of Consul.


ing serious hampered by the great In
crease in freight rates on practically
all lines between the Orient and En-
rope and the United States, according
to recent report by United States
Consul General George "a Anderson,
at HOngkong.
Formal announcement has been
made of twenty per cent advance
In the rates between the far East and
the eastern coast of the United States
by way OF the Suez canal, and ship
pers have been informed by the Pa
clhc conference lines Of a similar al
vance soon to become effective for
trans-Pacific traffic.
while the temporary closing OF the
Panama canal is said by shipping
people to have had some influence
upon this increase" says Consul Cen
eral Anderson in his report, 1.-THE plain
facts seem to be that ships are needed
in other parts Of the world to ,uch a
degree that they will be taken from
the far eastern trade unless the rates
announced can be obtained and ships
be filed at such advanced rates.
Ships for the Rice Crop.
ut is known" says the consular
report, "that there are unusually large
rice crops in Indo-China, Siam and
Burma. and the demand for tonnage
fol the movement Of this crop has
btitened frelghts both locally and in
world service. There is, In fact, no
clement in the situation promising any
weakening in the demand for vessels.
Norwegian ship owners, the world
over, are refusing to let their ships
on less than two years time charter
at rates which are very high. to say
the least. While, for instance. the
Nippon Yusen Kaisha, the chief Japa-
nese line concerned in European and
American trade, Is maintaining serv-
Ice of eleven liners and four addition
al 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 commodities which can move
generally at comparatively low freight
only are held up in far eastern ports.
Bad for General Business.
most serious phase of the sit
uation is the effect the high rates are
having upon business generally" the
report continues. "a very large share
Of Chinese produce for the United
Statcs-goods moderate in value for
their bulk-raw materials, particular
ly Of the class in which German firms
have succeeded in building UP good
trade in recent years, cannot 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 sit
uatiOn would right itself in time, but
at present no reduction in freight
rates can be justified here so long as
there Is demand for vessels else
where Mt high rates. The situation
Is particularly unfortunate for Amer
lean trade, which consists SO largely
OF goods in both import and export
lLnrs in which freight rates are a
dominating factor. The export trade
In -four, lumber, and machinery, par
ticulnrly will be affected.
Some Industries Embarrassed.
AS result OF the difficulty in Sc
curing transportation. tho rattan and
a!mactga gum industries in some parts
OF the Philippines are reported SER
iNusly embarrassed. and many of the
natives face financial destruction.
SHIPMENTS OF beans and similar goods
from north China and Japan to Europe
arc practically impossible Mt present
rates. The export of coal from japan
and Indo-Chlna ia reduced fully ten
pei cent by the high cost of freight
alone.
THE large shipyards OF Hongkong.
under certain conditions, can build
ships as oheaply 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-
dnstd here, serves to counteract many
OF the advantages the industry has
otherwise in Hongkong. but in, spite
OF this and the fact that much of
the steel now obtained in Hongkong
is Lought 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 cheaply as the cheapest. All the
shipyards in Hongkong capable of
building ocean vessels have work to
their full capacity.
Hongkong shipbuilders Busy.
"1n the. two larger Hongkong yards
fourteen new vessels are now under
construction or to be constructed aa
soon as room for them can be made.
These vessels include three new ships
for the Blue Funnel lines Straits
Steamship Company extension and
three new ships for the China Navi-
CATION Company's coast service be-
tween Shanghai and Hongkong, at the
yard OF the Taihoo Dockyard and En-
cheering Company. At the yard OF
the HongkoEg and Whampoa Dock
Company CLtd.) six news ships are be-
ing built for Messrs. Bruusgaard K1os-
terud and Company, OF Drammen, Nor
way, and two for Messrs. Hans Kiaer
and Company, of the same place. Two
other vessels of the same class will be
started as soon as room can be made
for them and three others are con-
tracted for. There are also under
construction two vessels for the Siam
Steamship Company. All these new
vessels are being built In addition to
a large amount Of work in the over
hauling and repair OF old vessels, the
task In some instances approaching
in Importance the construction or new
yssse1sH