New-York tribune., 1920-12-26
Ocean Freight
Slump Severe
In Britain,T Too
Shipowners to Lay Up YES
sells and Keep Them
Idle Until Conditions Be-
come Much Improved
No Demand for Tonnage
Values of Ships Reported To
Be Rapidly Falling; Coal
Market in Wa'es Is Dead

The depressed state of the ocean
frsiohts markets in this country is
matched by conditions prevailing in
Great Britain. The best thing to be
done is to lay up extensively and keep
II idle until matters improve. accord
rg to the British shipping publication,
Fairplay, which says:
"Since last reports the condition of
th> freight market has become even
more grave, for nearly all business
now affected must show loss. In
measure. the crisis is more. acute than
was the case in previous slumps, for
we cannot remember during the last
thirty years or more that it was I'M
possible to charter a handy-slzed
steamer from Wales in any direction
for early December loading, which has
been the experience of some owners
having PROMPT boats to deal with from
the Bristol Channel. 1t has been i'm
possibe to fix at all (quite regardless
of rate of freiCht) for prompt LOADING.
"Owners are now met with position
recurring the most serious considera-
ton. Are they going to incur huge
loss upon the outward business in the
hope of recovering it upon the home
ward freight? This would be merely
specializing, for they may make loss,
and a very considerable one too, upon
the round voyage.
Urged to Lay Up Tonnage
"If they do not fix up coal freight
out, but elect to run in ballast to the
United States or to the River Plate,
they are in for a certain very heavy
loss.
What are they to do with their tom
mage this side wanting employment!
There is only one safe and prudent
measure to adopt. and that is to lay
the boats up, and keep them laid up,
until the atmosphere is clearer-or,
in other words, until the storm has
PASSED over.
at is no earthly good for owners to
try to hoodwink themselves into the
belief that this sudden smashup is only
temporary and that the next week or
two will see the trouble all over. The
trouble may not be over yet awhile
and serious developments must be pro-
vided for.
"Owrers must realize right away
that there is too much available ton
mage for the worlds requirements; 1t
is almost everywhere in superabund-
ance. but more especially from this
sde and also from the United States.
This oversupply Of boats cannot be
wiped out in so many days or SO many
weeks; it may take months to adjust
the position satisfactorily as between
supply and demand.
British Outlook Gloomy
"ln the mean time many new con-
Germs will be in trouble and unable to
meet their liabilities. Creditors will
be round them like a swarm of wasps,
the mortgages will want their money
plus interest, the banks Wi. want their
oyerdrafts repaid, the store dealers
will want to be paid, the government
will want its so ner cent excess prohCs
duty, etc. etc.
"In the earlier part of this year,
when boats were making money, divi-
stead of being lavishly distributed, IN
stead of being earmarked for taxation
liabilities and repayment of mortgages
plus interest We warned owners OF
new companies over and over, again re-
garding this indiscretion, and now they
find them selves in a tight corner from
which not half of them will ever be
able to extricate themselves.
values OF tonnage meanwhile are
rapidly falling; there are no buyers
about at present though one possible
purchaser we hear of is an owner who
sold his feet al 92J i ton dead weight,
and is waiting in the hope of getting
it back next year at about 26 ton
"The American market is in
wretched state, and no recovery appears
possible yet awhile. Quite a number
Of steamers already chartered have
missed their cancelling dates through
the comb ned effects of the coal strike
and bad weather, and have had to make
the best of it and accept what was to
be had, whether it would pay expenses
on the voyage or otherwise. and great
many Of the freights Will certainly
come under the latter category. Other
steamers sent in ballast unfixed to
Hampton Roads, etc, for orders have
not improved or strengthened the stu
alton, for the. have fallen into the
same plight, and most OF the fixtures
affected are Of most ruinous nature
The coal market in Wales, so far as
charterlng is concerned has completely
collapsed. There is not an order left
In the market fer any destinations"
.