New-York tribune., 1921-01-26
Thousands of
British Ships
Run at a Loss
More Than Half of Ocean
Fleet Is Unable to Make
ANY Money at the Present
Level of Freight Rates
Tramps the Hardest Hit
English Shipbuilding Badly
Affected by the Situation;
No New Vessels Ordered
r..u The Tribume's Emropean Bureau

p,,tish cargo ship which is not operat-
!. on contracts previously arranged
:. remuuerative rate is now running
= loss," says r. j. Turner, of Turner,
nsv;dson & Co.. Ltd, brokers for the
commonwealth Government Line of
,,..mers. Vessels that formerly
,,.rged $40 a ton for freight are now
,,cspting 15 shillings, and many ves-
.el, are being laid up because they do
"A. make their own expenses.
The causes of the situation, accord
;.r to Mr.. Turner, lie in the high
building and operating costs and the
6.oreanised condition of the world pro-
auction and world trade. The shipping
susiness has enjoyed four prosperous
Years, due to war cargoes, but the in
austrial collapse has brought about
condition where there are but few
eargoes to be carried. Tight money
and the high cost of labor and ma
txrisls have cut down production, and
England is not exporting as much as
she did before the war, especially in
coal cargoes. Foreign countries with
depreciated currency cannot afford to
trade with England, and neither are
they liable to ship the raw products
fla. formerly constituted the return
esrgoes. AS a result, the shipping
arms have had to begin a war of
cutting freight rates in order to COM
pete for the few cargoes that are to be
had, and this has sent the rates tum-
bling to a place where the owners face
financial disaster.
Shipping Costs All Higher
"This freight situation is compli-
uied by the fact that all ships handling
costs have increased" said Mr.. Turner
to-day. "The costs of wages and ma
srials for shipbuilding have gone up
three or four times their pre-war
igures. Steel plate has jumped from
n a ton in 1914 to f26 ton to-day.
The wages of shipyard workers have
gone up from 80 shillings week to
"A los. In the case of the more skilled
workers, such as platers and riveters,
wages have increased 400 per cent.
AT the present time the favorite
tramp cargo ships is the S,000-ton ves-
SCI. These ships are relatively easy
to build, have good cargo space and a
na onably cheap maintenance. In 1914
the construction OF such ships cost
u los per ton. To-day they cost f36 per
ton. Their operating costs, including
Insurance, were roughly s2S day; the
.st is now sl00 daily. Welsh steam
ag coal has increased from Is shill-
ags- per ton to 10 shillings. The
wages OF the crew, on deck and below
have Jumped from e3 15s per month to
ss per month. Port charges have in
creased, the Port Of London alone put
'ng Its charges up $50 per cent.
~ course we advanced our freight
rates to meet tn. situation, and as
lelg IS there were plenty of cargoes
shlngs went along smoothly. Business
was good and shipping had tremendous
ooom Tor four years. The excess
pronts duty cut in on things bit, but
sse1y snip went to sea with full hold,
ahd there were al7ays cargoes for the
Ies1rn voyage. Then all this stopped.
Ias exchange fell, and Europe no
'0assr bought from England.
Bulk of Ships Losing Money
To-day more and more ship owners
s!e laying up their vessels. There are
spproximately 1000 ocean-going mer-
saant ships under the British fay.
oesween 1000 and 5000 of these ships
ns now running at loss. Some have
sa.iaets far ahead, made when rates
ss.s hign, that enable them to pay.
:. -. .he man who has to accept freight
:. .se .ae present rates would find it
@ssper @ to lay the hip up.
| !. " course, this applies principally
'as small tramp merchant vessel.
NC. NC o'g INES have not suffered as
-.a .sa. iney have a passenger trade,
g.. a.. SUBSIDIES, and, Furthermore, their
.sasas IS handled on the basis Of
~ ana definite schedules. The man
s.s'n's H. wants TO get his cargo across the
s;lsHc s;u; quickly and on schedule is
ling 70 pay the high rate. The big
s...pp'ag companies have not cut. They
- aos nave to. 1t is the small ship
,.nsl, ,srss Sno is willing to send q tramp
n,;a.e, ns;a.ele, with any cargo, and hopes
tRSA up return cargo at mis- dcsti-
sss., ssssn, who has had to fight to keep his
up: running. But these tramp steam
.sso' - .o'm the largest part of the mer-
'asnt marine.
las crisis in freight rates had a
'.sa.s 'sss.sous effect on the shpbuilding
s@.fy. no one dares to build ships;
=. - ne can afford to. Existing contracts
s,s Ss,ng Cancelled, and no new orders
IL 0slhs placed. A year ago, when the
'syphg poom was on, there was moth
E uncommon in the price of f40 to
:, 'on dead weight for new steam
n. =. a,ooo 70 1000 tons. Even nov
a..; .s;n'pouliders cannot afford to build
80 Up Tor less than $50 ton. But no
- asfes 70 pay these prices, in view
.as stump in freight rates. There
40 prospect O? any return ON the
sssssaent. Bids of e1S to f20 are
-sas but the shipyards cannot afford
E take them. As result. no new
"s aye being contracted for.
Many Contracts Cancelled
a. another problem arises in the mat
ss..., ., snips already under way. These
t4.ss nave been ordered end laid
i.sr.;. say' at price Of f35 ton. The
,sty'h2 company realizes that, in view
,s.sa sss ssa'np, the vessel will never be
So a tsas sum to them. In many
ssss. '"nefs have had 10 cancel con-
.s,.n AZ heavy sacrifice, or else to
H. the Yegsels a. very much below
ys... pfginai cost. Such vessel re-
~ was withdrawn from auction
sss.. s OILY &s los q ton was offered
ssrs.'eaIy pre-war price.
nx.Wsign owners VINO have placed
.ss.s.a1; .sass1; In England are furthermore
s.. s.'sa oy the exchange. Scandinavian
mset an adverse exchange Of 30
t,.s tsns On the costs Of their boats. Az
: AIas many have canceled contracts.
~. - s2cn situation the yards must
ss,.I arrange With labor for lower
~ or c'se close down.
sses sesssssnsd-hand ships are cheap. II Is
fsss., sinsapsr u buy secondhand
s4ssi than IN bnftd d. rn,,, enn a