New-York tribune., 1920-10-01
British Gloomy
Over Outlook
For Sea Trade
Shipping Resources Value
Has Deprecated Nearly
so Per Cent Since the
Beginning of This Year
Other Nations Harder Hit
European Countries Suffer;
Costs Continuing High,
While Freights Fall Off


and shipbuilding circles in Great Brit
ain. according to a review of the situa-
ton made for the United States Ship
ping Board, and the outlook for the
future is said to he regarded with
grave concern. While costs of CON
struction and operating continue at
high levels, freights are seeking lower
levels.
"rhese conditions have naturally had
a very depressing effect on the value
of tonnage says the report "A Lon
do shipping organization has made
careful study Of the situation to deter
niue to what extent the market value
of British tonnage has deprecated
since the beginning of the present
yesr.
After a careful cons nsideration Of
the general market and a comparison
OF prices At which similar vessels were
sold at the beginning of the year and
At the end of August. the conclusion
has been reached that on the whole
the shipping resources of Great Brit
ain have deprecated between 40 and
45 per cent. Other European countries
where values were much more inflated
prior TO the collapse of the freight
market have experienced an even
greater degree OF depreciation.
No Demand for Cargo Ships
"For all practical purposes it may
be said that there are no British buy
ers in the market for general cargo
vessels to-day. Not only do they feel
the futilty Of adding to their present
fleets with values depreciating as they
are at the present time, but the fact
that the British government during
the coming year will exact 80 per
cent duty on excess profits is an addi-
tional deterrent.
Certain British nrms, particularly
those of the mushroom variety, are
reported TO be very anxious to dispose
OF their tonnage. Several owners are
said to be willing to sell new cargo
vessels Of intermediate size to British
buyers for about $40 per deadweight
ton, but as yet no buyers have come
forward A Glasgow firm is reported to
have offered five steamers of 1000 to
5000 gross tons, twenty years Of age,
for about a17 per ton without finding
purchasers.
The only recent purchases by Brit
sh owners reported are those of a
former Japanese steamer, 2,1O0 tons
deadweight built in 1918, for which
approximately $50 los per ton was paid,
and of an oil tanker of 5,400 tons de-
liverable al the end of this year, sold
for 16l per ton.
Big Price Paio for Tanker
"1he fact that the former japanese
steamer is of small tonnage probably
accounts for this transaction" says the
report to the Shipping Board, for
F.: i C
the coasting and short sea-route type
The extraordinary price paid for the
tanker reflects the worldwide scarcity
of tanker tonnage and the resultant
fact that q tanker will command sew
eral times as much on the time charter
market as will an ordinary cargo YES
sci.
"Although the British demand for
cargo tonnage is practically dead" con-
tinues the report, "a number of fair
purchases are still being reported from
Continental countries. This fact can
be accounted for by two reasons pri-
marily-hrstly, Continental shipown-
ars, in most instances, are not subje
to the heavy excess profits tax which
has been levied upon British shipping
along with the other British indus
tries; secondly, the Continental coun-
tries have not been able since the ar
mistice to build up their depleted mcr-
chant fleets to the same extent that
Britain has and the volume Of tonnage
under their respective flags is still con-
siderably below pre-war figures.
Foreign Sales Restricted
at may also be pointed out that
British owners are distinctly handi-
capped in their attempts to sell new
tonnage to foreigners by the restric-
tion placed upon such sales by the gov
ernment This restriction is not an
absolute prohibition against selling to
foreigners, bu. the sale Of any vessel
under fifteen years Of age must be
sanctioned by the Shipping Controller
before it can be consummated During
the last eighteen months the Control
Ter has held very strong check upon
the transfer of tonnage to other flags.
whether the present slump in Brit
ish demand for shipping will induce q
change in this policy remains to be
seen. 1t can be said, however, that a
strong agitation is being conducted for
the removal Of these restrictions, SO
that British owners may dispose of
their surplus tonnage while foreigners
are still willing to purchase at reason
ably high prices"
The condition of British shipbuilding
is indicated by the statement that dur
ing July and August not a single new
contract for the construction of gen
eral cargo steamer was reported A
Few contracts were reported however
for specialized types of steamers, pas
senger carriers and tankers. The de-
hand for tankers is said to be very
keen and there is stated to be no doubt
that II the ways were available much
larger number of oil carriers would be