Evening star., 1939-11-05
Ship Operators See
40 Million Yearly Loss
And Freight Rate Rise
Seek New Outlets; Goods
Pile Up on Whorves After
'Combot Zone Edict
By the Associated Press.

NEW YORK, Nov. A. While
American ship operators scanned
the world for new outlets for their
vessels. one of them foresaw the
loss of $4,000, 900 annually in ex-
port shipping and some predicted
skyrocketing of freight rates as they
studied tonight President Roose-
velts combat zone" proclamation
barring them from European ports
on the Atlantic.
Thousands of tons of freight be-
gan to pile up on wharves in New
York and other ports as many YES
sells affected by the edict remained
fast at their piers. Added to nor
NAL freight was the beginning Of
millions of dollars worth Of Ameri-
can war implements released by re-
peal of the embargo and sold or
for sale to belligerents on the new
cash-and-carry basis.
While some shipping men saw
complete or r-complete stop
page of their operations, others dis
cussed the possibility of shifting
their ships into the South American
and South African trade to take
the place of British and French
vessels which they believe now will
be pressed into service by their
nations to carry munitions and
other supplies.
May Charter Neutral Ships.
Victor j. Sudman, president Of
the Black Diamond Steamship Line,
operating to Rotterdam and Ant
werp, contemplated chartering for
eign flag ships of neutral nations,
as a means of shipping cargoes to
Europe.
We'll have to get foreign ton
mage" he said, "and run our own
ships as soon as we can-probably
to South American, Mediterranean
or South African ports"
His eight ships may have to be
laid up, he explained, with a re-
sultant loss of $4,000 tons of cargo
a month.
He estimated the average value of
cargo moved in his vessels at $1O,-
000, 900 month, and foresaw owners
who have already contracted for
movement of cargo, now halted,
probably paying twice the rate of
today-God knows what they'll have
to pay for it."
In many cases, ownefs of cargo
DISCHARGED from ships caught bv the
proclamation, or lying on piers
awaiting ship, will not only have
to pay the freight money originally
contracted for, but pier storage
charges, one source explained.
disappointed" With Provisions.
Albert V. Moore, president of the
American Scantic Lines, expressed
disappointment" over provisions OF
the proclamation.
I'VE had intended following the
coastline of Denmark, Norway and
Sweden to Copenhagen" he ex-
planned, "but now we cannot dc
that"
Doing $4,000, ,0O0- 0-a-year business,
the company may now make Ber-
gen, Norway-the only North At
lantic port left open to American
steamers-a trans shipment" point.
Cargoes would be transferred to
foreign vessels at Bergen, Mr.. Moore
explained, and would be carried to
Oslo, Norway, Gothenberg and Co.
penhagen.
We'll have to work that out Mon
day." said Mr.. Moore. He was not
sure whether the seven scooter
vessels of the company now in the
Baltic service would be placed with
IS others of the line in South Ameri-
can service.
One Line Unaffected.
Apparently unaffected, for the
most part, by the proclamation, was
the American Export Lines, whose
vessels ply between Atlantic coast
al and Mediterranean ports.
The southern port of France, Mar
seille, and porth of North Africa
will be closed to the line, which will
continue its trips to Egypt and
other eastern parts Of the Mediter.
(sse SHIPPING. Page A-Sl