The Washington herald., 1921-07-23
FREIGHT RATES
QNa0CEAN DROP
aDNEHALFN YEAR
Shipping Board Figures
Show Decline in Line
With Price Drop.
RATIO STAYS SAME
Oofton and Wheat Rates SO
Per Cent Lower Than
Last November.
RATIO STAYS SAME

ocean freight rates on wheat ana
cotaoa moving from North Atlantic
ports Of the United States to the
United Kingdom were approximately
5osber cent lower on July l. 1871
thsaron November 1. 1890, according
-to n statement complied from data
received by the United States De-
paxsnent Of Agriculture from the
uaissd states shipping Board. This
decline corresponds substantially to
the, price declines of those COM
nodi.ie Z during the same period SO
thar the ratio between the freight
rates and prices remains relatively
the same. .. ..s .. a.
rhs average price Of cotton u
N-.w-York for October. 1890, and Tor
Jd.5s. 1891, was s22ss and sl2 per
100 hounds, respectively. In the ao-
sencs of figures showing the aver
ape ocean freight rate on cotton
,fnftnr- these, months the rates IN
efact on November 1. 1920, and July
I aaaI. were used in this complla-
t;o,x1- The ocean freight rate 10 the
II,as.a KINGDOM was, s1.10 per 100
,.arr,s. on November 1, 1920, or -
nes cent OF the value of the COTTON
ass~spreserted by the quotation on
tnat ndre. On July 1, 1871, when
tbsI'pcean freight rate was Szh
cests per 100 pounds, the ratio pc
tvSesn the freight rate and the price
vsax 4.4 per cent. e in other worus'
the cratic between the freight rate
aswpushe price Of cotton was one
,hnsetsof I. s-per cent less than on
November L 1890 800
- wheat Freight HaIved.
or November 1, 1920. No. Red
WHEAT was quoted in New YORK at
S234k a bushel, and the ocean
freight rate was 40 cents per lVV
pounds, or at the rate OF - Genus
a busheI, which represented lo.2 per
cent of the value of the wheat. On
Jsiy.l, 1921, with No. Red Wneat
selling at -y1,i7h a oushei' tne
freight rate was, Il cents per loO
poupds-12.6 cents per busnel-or
So per cent. OF the value OF pusnei
OF wheat. Both the price OF wheat
and the freight rate may be said
10 represent a fair average for June:
The decline in the rates ana
pEices of other comodities was less
marked. In the case of butter ana
cheese the wholesale prices have
declined approximately a. per cent
since last November. while the
ocean freight rates on these com
rncIitfes have fallen only from 20
to - per cent
Ocean Freights-
while the cost of ocean transpor-
tation y an essential factor - the
marketing of agricultural products
In, foreign countries, II Is by no
raeaas as important a factor as is
the cost Of rail transportation to
the seaboard.
For example, the export lake
and-raiI freight rate on wheat from
Duluth to New York is 2S.S cents
per bushel, while the ocean freight
rate from New York to Liverpool
is is.6 cents per bushel, making a
combined rate of 414 cents per
busbel, of which the lake-and-rail
freight costs represent 6s.6 per cent.
The export rail rate from Kansas
City to Galveston is 81 cents
busheI, and the ocean freight from
Galveston TO the United Kingdom is
Is cents a bushel, a total Of AZ
cents a bushel, of which the cost
Of the inland rail haul represents
s4.3.per cent.
.xos-'-Arsentine's Advantage.
In this connection IL is interest
ing To compare these rates with the
raif-rnd- ocean freight rates to the
United Kingdom from the wheat
Producing centers of Argentina,
where the rate for transporting
4 BOO Kilograms (.,e04.6 pounds) of
vhes a distance of 500 kilometers
(kt0.6 miles) is s15.44 Argentina
paber, or 12.2 cents a bushel, cal
cuiated on the basis of the prevail
ing rate Of exchange, The average
yaiI haul in Argentina is 435 kilo-
meters (261 miles). Argentina
growers thus have an apparent ad-
vintage of about IA cents a bushel
otter the interior sections of the
United States In the cost of trans
pstting their wheat to the seaboard.
This advantage, however, is partly
onset by increased ocean freight
rstes5from Argentine to the United
Kthgdom, which at the present time
ats around % cents a bushel max
ing a combined rail-and-ocean rate
OF $50 cents bushel for Argen-