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Millions of Tons 8 MOVEMENT OF BULK FREIGHT ey x E GREAT LAKES = TAS ACC NV eehueccaes he 40% w 30 § le EERE 7 = dio wreaee = aa ee ie 1920 1921 1922 1923 1924 1925 1926 1927 1928 1929 1930 1931 1932 1933 1934 de Fig. 2—Movement of iron ore, coal and grain on the Great Lakes during the past 15 years. Following customary practice, iron ore is given in long tons (2240 1bs.), coal and grain are given in short tons (2000 lbs.). The coal movement includes bunkers TABLE V World Wheat Estimates (Millions of Bushels) 1934 1934 Carry-over Crop United States oo... eee 260 493 COE oye bela eras eat Neen 193 270 PAT PONUING oe iii cc accscescasseswasens 119 235 RUS GYRE cciiccxsesihccsccccecnccccos 86 145 Total Domestic Surplus Supplies Requirements or Carry-over 753 650 103 463 106 3857 354 95 259 231 52 179 which the United Kingdom alone takes 200,000,000 bushels. France, usually an importer, has a surplus of 75,000,000 bushels. Due to the severe drought and the government’s efforts to curtail acre- age, our exportable surplus, carried over from previous years, has been so reduced that we are no longer an important factor in the world mar- ket. (See Tables III, IV, V.) The movement of export grain on the Great Lakes during the coming season will depend, therefore, large- ly on how much of the Canadian sur- plus can be sold abroad. But as has been pointed out, under the six-cent preferential, the movement, if it de- velops, will be mainly in ships of Canadian registry. Eliminating the hope of an export market for ships of the United States, TABLE VI Grain Shipments and Receipts At Buffalo (Millions of Bushels) Year Shipments Receipts Percentage LOBOS erences 805 130 2 BOB 2 ee iva casece 315 141 44 OBL sete cevcsarsae 334 157 47 POS OS iicscecssss 346 181 52 BS 115 pera Pe 351 172 49 TODS iecrccesscsssase 575 280 48 there is still to be considered the domestic movement and the possibilty of larger imports from Canada. This country is not only the largest pro- ducer but also the foremost consumer of wheat in the world, and the trans- portation of grain to meet the needs of the concentrated population cen- T is impossible to reconcile or to justify the wide disparity in freight rates on iron ore, coal and grain on the Great Lakes for approximately the same length of voyage and service. The rates on iron ore and coal have been remarkably steady for years, at 70 cents a long ton for ore and 40 cents a short ton for coal, while the rates on grain have fluctuated from a high of $1.12 a short ton in 1922 to low of 21 cents a ton in 1934. This is a serious matter not only for the vessel operator, who cannot, at these rates, meet his expenses, but also to the ship- per whose momentary advantage is likely to affect adversely the quality of future service. It would seem to be a modest proposal to suggest that since 70 cents a ton for ore has been found to be a fair rate, satisfac- tory to both the shipper and carrier, that the rates on coal and grain should be not less than 45 cents a ton or that the sum of the two should be 90 cents more than for a cargo of ore one way. — Editors Note MARINE REVIEW—January, 1935 ters of the eastern states alone, is an undertaking of some magnitude. Although apprehension was felt that the loss of the Canadian export business would have a ruinous effect upon the receipt of grain at Buffaio, this port continues to be pre-eminent as a distribution point for domestic shipments. Being the leading mill- TABLE VII United States Grain Shipments And Receipts at Buffalo (In Bushels) Year Shipments Receipts Percentage 1932 93,537,128 82,076,819 87.75 1931 97,586,633 83,586,460 85.66 1930 98,578,717 88,423 362 89.70 ing center, with an annual consump- tion of 50,000,000 bushels, as well as the western terminus of the New York State Barge canal, it is unlikely that her position will ever be seri- ously threatened, (See Tabes VI, VII.) With the various facts in mind there does not apear to be any real cause for the drastic and unwar- ranted decline in the grain rate ex- cept competition between the carriers themselves. An increase in the grain rate of one cent a bushel would mean less than five cents additional in the manufacturing cost of a barrel of flour. An increase of one cent a bush- el would mean the difference between a loss and a small profit to the ear- rier. If operating costs cannot be met, the high standards of the ore carry- ing fleets cannot be maintained, nor provision be made for replacement of tonnage, which now averages well Over twenty years of age. A higher and more stable grain rate must be obtained for the carrier solely or al- most solely dependent upon grain for eastbound cargoes. Call at London Allowed Permission has been granted the Baltimore Mail line to amend its ships’ sales and construction loan contracts to allow a call at London instead of Havre on alternate east- bound voyages. Announcement to this effect was made on Dec. 18 by James Craig Peacock, director of the shipping board bureau, depart- ment of commerce. This announcement follows a pub- lic hearing held on Nov. 26 to en- able the shipping board bureau to ascertain the views of other inter- ested carriers, and of shippers and the general public in respect to the request of the Baltimore Mail line to make this change in its itinerary. ——. Frederic R. Harris announces the removal of his engineering office to 27 William street, New York City. 19