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Orientals Reap Golden Harvest in Western Waters--Allies Dictate to Norwegians Through Control of Coal Supplies--Pacific Tonnage Being Diverted to Atlantic charterers will undoubtedly turn back to the annals of 1917 when they wish to find the high records of the charter market. On the Pacific coast, 1917. has set a new mark with respect to top notch freights and high prices paid for 'tonnage. . Before. the war closes, still higher levels may be reached but this is improbable, owing to the government restrictions and regula- tions recently put into effect. 1 YEARS to come, shipowners and . From every angle of chartering and - selling vessels, 1917 stands out in bold relief. With two slight reverses, one during the early spring and the second in September-October, the charter mar- ket registered a constant advance during the last 12 months. This applies not only to the Oriental trade, in which tramp steamers aré engaged, usually fixed on a time basis, but also to lum- ber carriers, mostly sailing vessels which are chartered on a basis of per thous- and feet for certain foreign ports. Japan Ignores U. S. Rate Since the United States shipping board has decreed that no American citizen may charter' a tramp steamer at more than 45s ($10.95) per deadweight ton per month, a maximum has been es- tablished for this class of tonnage which must be observed by all but Japanese owners. It is understood that the United States and Great Britain have agreed upon this maximum ate, and pressure is being brought to bear upon other nations operating vessels. In the case of the Norwegians, the maximum rate can be applied although the hardy and far sighted Norsemen, who have always been a factor in trans- pacific trade, are not accepting the ulti- matum with the best of grace. How- ever, conditions are such: that the Nor- wegians must give way; because on this coast the United States and Great Britain control the fuel supplies without which the Norwegian fleet would be helpless. Because the Norwegians were not willing to accept the comparatively lower freights, several of their vessels have been held idle in Pacific ports for weeks at a time. Reports. from British India tell of such instances and at Seattle and San Francisco other Norwegian ships have been detained for from one to three months until the conditions of their charters were ap- proved by the governments that control the vital supplies of coal and fuel oil. On the other hand, the Japanese, who practically control the tonnage situation in the north Pacific, are still establish- ing the market value of steam charters. Japanese owners are asking as high as from 70 to 75s ($17.08 to $18.25) for their ships. Inasmuch as 'American -charterers are debarred from engaging in chartering at these fancy rates, the Japanese are free to charter among themselves. The reason Japan has the upper hand in this field of frenzied deep Table I How Japan Will Dis- pose of New Ships e Tonnage Sold: to "Great: Britain: .5...5 0.305 -148,605 Soldltoesrancea ic. see a acs 23,229 Solde toe Walyas ce Gos cone eee: 5,600 For service between Japan, United States, Russia and British ter- TICOMIES [she atc a ier noise 51,259 For. service between British ter- PIBOLLE RC pulse levees raieres eyed 16,700 BNR cede erie tr ies ann wie *87,191 332,654 *Likely to be sold to the allies but not decided. A seas. chartering is that she has her own coal supplies. Not only are the allied governments endeavoring to keep down the cost of ocean transportation but pressure is being brought to bear to equalize the distribution of tonnage. Japanese and Norwegian owners naturally prefer the safe lanes of the north Pacific to the submarine-menaced waters of the At- lantic. However, the shortage of ton- nages between the Atlantic-American coast and Europe is acute and the al- lied governments are applying pressure for the Atlantic. Steamer Delayed Many Months An instance may be cited of a Nor- wegian steamer, which was delayed on this coast nearly two months because, as reported, the British admiralty re- fused to consent to the terms of the charter and to other conditions. It was desired to send the vessel to the At- lantic. The owners demurred and it is understood that the steamer was finally permitted to make another voyage to the Orient after which it is stipulated she will go to the Atlantic. And to add further interest to the case, she was chartered at a figure below the maxi- 83 diversion of steamers to the. : By R. C, Hill mum, said to be about 41s 6d $(10.12).. It is difficult to state what will be the immediate future of transpacific freights. While the Japanese are hold- ing to market levels, the fact that Brit- ish and American firms can "not fix Japanese rates may bear the market to some extent. On the other hand, there is so mtich freight to be moved across . the Pacific that Japanese owners may find sufficient demand among their own people to keep freights up to today's levels. The more likely outcome will be that the Japanese eventually will be compelled to meet the maximum now set, with the probability that their gov- 'ernment will reimburse Japanese own- ers for the difference between the cur- rent market and the allied government maximum. It can easily be seen how the Japan- ese are dominating the transpacific trade. The Japanese not only have the ships and are adding rapidly to their number, but with their own fuel supplies they are not subject to the pressure that can be applied to ships of other nations. © How Japan Controls Pacific Ten years ago a Japanese steamer 'was. a novelty in Puget sound waters. Today the Nipponese practically control the trade. In the last three years 100 different Japanese steamers, with an ag- gregate cargo capacity of 653,202. tons. have visited Seattle. This table does not include a dozen regular liners which call there three or four times annually. Recent figures show that Japanese ton- nage constituted between 70 and 80 per cent of transpacific commerce. With American, British and many Norwegian vessels diverted to the Atlantic, the Japanese in the near future are likely to have 95 per cent of the tonnage en- gaged in Oriental trade. The Japanese, like the Norwegians, are not anxious to send their vessels to 'the Atlantic and the same pressure can- not be brought to bear as upon the Norwegians for reasons already stated. While the Japanese have promised to place some of their ships in the north Atlantic, the great bulk of their mer- chant marine will remain in the Pa- cific and continue to gather fabulous profits. Japan is said to have on the ways 332,654 tons of steel vessels of over 3000 tons each which will soon be com-. pleted. England. France and Italy have