The following text may have been generated by Optical Character Recognition, with varying degrees of accuracy. Reader beware!

274 steamers were chartered on this coast for lumber at 3 shillings 3 pence per deadweight ton, time. This is in marked contrast to the rate of $15 per deadweight ton, or approximately THE MARINE REVIEW war, the Japanese had been purchas- ing second-hand British tonnage, and ‘since the war the Japanese have been building ships as rapidly as possible, handicapped, as they are, by the neces- 60 shillings, at which figure the Amer- sity of importing steel. Some ex- Table I : Freight Rates on Lumber From Puget Sound to: 1917 1916: 1915 1914 SA HraCISCO ha ayia) ss cise le wwiviads as «ice $7.00 $6.00 $3.50 $3.50 Boucienna, Calorie oi ey ki ea. vo oie arene 8.0 7.0 4.00 4.00 Pa waitater sland ce vais oc sas we be wls oc $18-19.00 17.00 9.50 6.00 Neds eMC okies Arcee i oc oo: ogo ne eae tevanerstece 125s 122s 6d 87s 6d 37s 6d—40s Sydney, New South Wales............. 125s 122s 6d 87s 6d 37s 6d—40s Melbourne-Adelaide © .....6 005. ce ce ea 140s 135s 97s 6d—100s 42s 6d—45s MI ee Neti homer iiice cus icseteyelia eres wie V sussoinie ater oo $40.00 125s 82s 6 40s—45s MUCH NPI A a a ante ose oo eee we ena ses 260s 200s 130s 62s 6d—65s ican steamer FrANcES L. SKINNER is reported to have been fixed this month for a voyage to the Orient. Late in 1915 and early in 1916, some far- sighted lumber exporters were thought to have gone mad when they char- tered lumber vessels for Australia at rates from 100 shillings to 110 shil- lings for 1917 loading, but the wisdom of their foresight is now apparent. Only One Slight Decline Since early in 1915, following the chaos incident to the beginning of hostilities, freights have advanced with practically no setback. In the latter part of 1916, there was a slight de-. cline in freights to the Orient, but within the past three months, not only was this loss overcome, but time charters forged to new high levels. For many months time char- ters for tramp steamers operating to the Orient ranged from 30 shillings to 35 shillings, but since April, the scarcity of tonnage and the heavy movement of freight has sent char- ters up to a 60-shilling level. Illustrating the rise in ocean freights on this coast, it is but necessary to state that $8 was a fair normal price for carrying lumber from Puget ~ sound to the Orient. Not long since a tramp steamer was fixed for this trade, the exporter paying $25 per thousand freight. Hemp, which former- ly moved from Manila to Seattle on a basis of about 35 shillings per meas- urement ton, is now seeking space at $11.50 per bale, there being about three and one-third bales to each measurement ton. Rates on general cargo from the Orient, nitrates from the West coast and other commodi- ties which must be moved have ad- vanced in like proportion. Profits to Japan and Norway The Japanese and Norwegian ship- Owners are reaping the greater part of this great harvest. They were among the first to foresee the boom and to take advantage of the oppor- tunity. For some time prior to the ceedingly fast work has been done in Nippon yards, there being record of their having turned out. tramp steam- ers of good size in four months. All the yards in Japan are crowded with work and the building activity is certain to continue for several years. Having lost many vessels in the danger zone, the Norwegians were early on the scene in placing orders for new tonnage at Pacific coast yards. They began at an opportune time, about 18 months ago, when Pacific yards were glad to get the contracts and when the cost of con- struction was closer to normal. One Norwegian owner ordered eight stand- ard-size freighters from a Seattle builder at prices which, at that time, caused those who thought they were wise to express the belief that the daring Norse needed a guardian. In- asmuch as the value of these ships has increased at least $1,000,000 each within the past 12 months, further comment as to the astuteness of the Norwegian capitalist is unnecessary. Several ship contracts, awarded on this coast, changed hands at hand- some profits long before the vessels were in frame. Avoid Atlantic Trade The fixed policy of Norwegian own- ers of vessels built on the Pacific is not to charter them for Atlantic trades notwithstanding the more at- August, 1917 to make large profits in the next five years. The Japanese are similarly wise, as in a majority of instances, they will not consider charters which will send their vessels into the danger lanes. Pacific coast yards have already turned out a considerable number of ships, both steel and wood, steam and motor. Some time ago, it was feared that the influx of this new tonnage would reduce freights on the Pacific. The very opposite, however, has been the case. The losses of tonnage in the Atlantic have boosted the freight market in the Pacific until today the scarcity of , carriers is more _ pro- nounced than at any time in the past and fabulous prices are being paid both for charters and for: vessels. At the present time, new steel ton- nage, of standard types, is being offered on a basis of $300 net per deadweight ton, while for auxiliary- powered ships some owners are will- ing to sell for $125 or $130 per dead- weight ton. This means that one might purchase an 8800-ton steel steamer for the mere trifle of about $2,640,000, while a 2500-ton motor ship might be obtained for something like $325,000. These sales, of course, are subject to the consent of the govern- ment and in the present state of de- lightful uncertainty, it is next to im- possible to sell or buy. New Japa- nese steel vessels are reported to be on the market at from $300 to $310 per ton, with prices advancing almost over night. Japan’s Position Stronger Developments of the past two years have served to give the Japanese a stronger hold than ever on Pacific trade. Prior to the war, Japan was in financial stress. Today the island kingdom is enjoying unprecedented prosperity. It has approximately 2,000,000 tons of ocean-going tonnage and today about 80 per cent of Japa- nese commerce is being carried in Japanese vessels. Before the present era of shipping prosperity barely 40 per cent of the ocean business of BoE GEER SNES GN ae cee See Oe ee Table II Japanese Shipping Gains During the War Japanese vessels American vessels British: SVeSSEls «a. eects se as Norwegian vessels Dutch vessels tractive rates offered. In the Pacific, these vessels are finding very re- numerative employment without the danger of submarines. The Nor- wegians expect, and without question their expectations are firmly justified, SISOS feria ele kd! <dy pt eel .\6 01:6 Je) 8) e\e eee se! eee CeCe ue er ec it Sar der Yer ee PRL eh en i Hehe Meh CIHOY Re Wed or aC st ne her ag eS CP Tet eta Tt Yor aE A ee COM MEI a (Sor Wa eT MELE EN te PE —1914— —1917— Tonnage Percent Tonnage Per cent tea 95,524 56 230,334 74 Pee 55,289 33 23,211 8 Gigs 15,360 9 6,522 2 aco 2,788 2 19,455 6 waa 20,660 7 Nippon was handled by vessels flying the Japanese flag. Thanks to unfriendly laws and the reluctance of capital to invest under such conditions, the merchant marine of the United States has not profited