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Marine Review FOUNDED 1878 SHIP OPERATION : Volume 64 How Merchant Shipbuilding Might be Encouraged HE latest quarterly review of world mer- T chant shipbuilding, issued by Lloyd’s Reg- ister of Shipping, a full abstract of which appears elsewhere in this issue, shows that the United States, possessing the second largest merchant fleet, is now building an almost negli- gible amount, only 2.3 per cent, of vessels cur- rently under construction, while Great Britain, is building 48.3 per cent. Japan, France, Ger- many, Denmark, Holland, Sweden and Italy are all, in the order mentioned, building from over five times, for Japan, to approximately twice, for Italy, the gross tonnage of merchant ships under construction by the United States. This situation is a serious matter of national concern if we are to continue to hold even our present moderate share of the ocean transport of the trade to which we are a party. It is self- evident that we cannot continue to compete with out of date and obsolescent ships against the modern units added in recent years in such considerable numbers to other mercantile fleets. Furthermore, parity in naval fighting ships will not mean parity in effective naval strength if our mercantile fleet is inferior. Rehabilitation of heavy industry is one of the chief problems facing the administration. Ship- building is one of the important heavy indus- tries and while the naval program has been of great benefit to many shipyard workers, ef- fective steps should be taken to overcome the complete inertia with respect to merchant ship- building from which this industry now suffers so severely. Surely something can and should be done to stimulate private initiative in a pro- gram of replacement of existing vessels now in employment which are unduly costly to op- erate because of their inefficient and outmoded machinery and which cannot compete in quality of service with modern vessels. SHIPBUILDING - August, 1934 CARGO HANDLING Number 8 There are many steamship companies in the United States in all the various trades, offshore, coastwise, intercoastal, Great Lakes and inland waterways, well managed and effectively op- erated, that are now using vessels which ought to be replaced by modern efficient units, and these vessels would be replaced without ques- tion in normal times. It is recommended that all of these steamship companies be requested to classify the vessels of their fleets in, let us say, several groups. In the A group would be included all of those vessels of such age and design as to make them completely satisfactory for the service in which they are engaged. In class B might be included vessels which are, though not first class in every respect, reason- ably satisfactory for the services in which they are engaged. In class C might be included vessels not efficient and not suitable for serv- ice if satisfactory arrangements could be made to replace them, but which are continued in use because of necessity. In the last class would be included all the vessels still operat- ing but admittedly inefficient and inferior and not suitable for service and which in normal times would be replaced as a matter of course. This would have the effect of encouraging by direct action the taking of a careful inven- tory with the objective in mind of reducing cost of operation and improving the service. Such a survey, which could be carried out in the least possible time as each company would have this information covering its own vessels immediately available, would direct attention to the need of replacing specific units in specific services. It is safe to say that there would be a substantial number. The proposed new ves- sels should have the benefit of the very best in modern design and construction to make them as efficient and attractive as possible. The government could well afford to aid in financing the building of these specific vessels for specific services at a rate of interest and under conditions for repayment of loans which would make it possible for the owner to go MARINE REVIEwW—August, 1934 7