1930-12-31 — Page 10

HONG KONG DAILY PRESS, TRADE REVIEW, WEDNESDAY, DECEMBER 31, 1930.

SHIPOWNERS' HARD STRUGGLE FOR FREIGHTS

POOR YEAR FOR COASTAL SHIPPING.

CHARTERING BUSINESS GOES THROUGH RECORD PERIOD OF SLUMP.

OWNERS BEWILDERED

BY ABSENCE

OF FREIGHT.

The year 1930 has been the worst on record since the War for freight and chartering business.

up.

L

"

Idle tonnage could be found in Hong Kong and Shanghai and things have been, and still are, so bad, that owners have had to choose between running their ships at a loss or laying them Beveral factors were responsible for this state of affairs, but the principal causes are the drop in exchange on the Hong Kong, dollar and the unsettled conditions in China during the earlier part of the year.

•

A

number of small-sized steamers were fixed for this trade at Hong Kong 83.50 per ton. Parcels of beans from Newchwang and Dalny were freely accepted by Chinese steamors for Hong Kong and Canton at 32 cents per picul.

FEBRUARY.

British steamer Lycemoon, for passenger trade for 12 months, at $15,000 Hong Kong currency por month.

Norwegian steamer Kronviken, för six months, at £025 per month for North China trade. '..

MARCH

German steamer Dorry, at $7,000 Hong Kong currency per month, for seven months, for Newchwang

bean trade.

British steamer Lyeemoon, for 12 months at 214,500 per month, for native emigrants to Singapore.

Finnish steuner Dalai, which is the ex-Norwegian steamer Living- stone, for six months to Chinese shippers at 88,150 per month for general cargoes, Hong Kong/Bang

kok.

APRIL

Norwegian steamer Marly, for ten months at £700 per month.

Chinese steamer Ningching, which

WR8

the ex-Norwegian steamer Imatnca, for six months at Hong Kong 28,500 per month.

MAY,

Norwegian steamer Hubro, 2,500 tons dead weight, time charter for

THE NY.K. LINES.

LOCAL MANAGER'S REVIEW

ON THE YEAR.

SOUTH AMERICAN TRADE

DECREASE.

The local manager of the Nippon supplied us with the following re- Yusen Kaisha has very courteously view of the business of his company

during the year-

"The freight market during 139 has been very unsatisfactory, and to meet the situation our Company has decreased the berthing of steam

rn and thus several ships are now laid up in Japan.

Where we are affering mostly is in the South American trade, both on the East and West Consta, to which we have regular services. The trouble is due to disturbed poli- tical conditions, in Peru on the West and Brazil on the East.

"From Hong Kong the principal cargo for the West Coast of South America is rice, which, during the year, moved very slowly indeed and cannot compare in any way with the movement of rice to South America during 1929.

"The passenger business has been so poor that we took one ship off this service.

IMPORTED FRUITS.

AMERICAN APPLES. ORANGES AND GRAPES.

DECIDED FALLING OFF.

Imports of the fresh fruits, from California, so much prized by Hong Kong residents, have fallen off by forty per cent. this year as compar ed with 1029. This is not due in any way to any fault in the fruit but rather to the high price that one has to pay here owing to the exchange.

RICE

EXPORTS.

DEALERS FACED WITH OVER-PRODUCTION.

PRICES ON THE WANE.:

ELECTRICAL GOODS FITTINGS.

www.

GOOD YEAR DESPITE

EXCHANGE.

CHINESE BECOMING ELEC. TRICAL-MINDED.

The foreign export trade for the

As in other business, dealera in year under review has been the worst in the annals of rice business electrical goods and appliances were in this Colony. The depreciation in affected by the fall in the value of the value of the dollar during the the dollar and in consequence, busi- year has practically been nullifiedness has not been as satisfactory as by the advance in the first cost of expected, owing to the rise in Siam, and Saigon rices. Owing to prices. Burmn rices being, as usual, cheaper than those of Indo-China there were of Rangoon rice. The further de considerable shipments to China cline in exchange since October last did not help the local merchants whose old crop rices wore available but of no interest to the foreign buyers, owing to the advent of the

Thera has been no complaint 'in. regard to wiring work. Many of the going by the large number of orders. smaller electrical shops were kept received for wiring-installations in new houses. In this connection, it is interesting to note that during the year the China Light and Power Company have added about two. thousand cananmers on to their re- gister, and it is expected that this

American fruits have had to give much cheaper. I have never seen way to Australian fruits which are so many Australian oranges in Hong Kong as I have seen this year," said dealer in imported fruits when approached by Daily Prem re potter for his views on this parti- cular business. Asked as to why new erop rices.

The West Coast of South America, this was so, he said that the Hong Kong resident appreciates the im- principally Peru, grently restricted figure is even exceeded in the case ported orange, but he has not learn-purchases owing to the political re-of-the Hong Kong Electric Com- ed to notice the difference, involution. A reduction in the high pany, on account of the hundreds of flavour between an American and tariff is expected soon but unless an Australian orange, with the that takes place exports to that result that the latter, which is market during the coming year will cheaper, is sold in large quantities bo negligible. to local consumers The price is forly por cent, cheaper than Ameri- can oranges. Californian oranges retail at about 25 cents whilst Aus tralian oranges are generally sold nt 15 cents.

The chief line in fruit from America, however, is grapes, but; this year, owing to the drop in ex- change, business has been badly affected. The export of American grapes has been so small that the growers have been forced to keep their grapes in cold storage. There was a considerable fall in price in that last year a keg of grapes could be purchased at G.84.25 while to-day G.83.80 will buy the same keg. The drop is the more noticeable because G.84.25 has been the average price for the past four of five years. The Fran-principal brands of grapes import

houses that have sprung up with surprising rapidity on the Prasa completion of these buildings has Enst Reclamation in Wanchai. The Large quantities of Japanese rice proved a great boon to electrical flooded the local market in October firms undertaking this type of work owing to carly anticipation of and keen competition is experienced bumper crop from Korea and in canvassing for orders.

It is believed that commencing Japan, and alse to the measures taken by the Chinese Government to next year the regulation laid down prevent the dumping of rice inta by the Government, which requires China. One results of this was that all installations which are more than Siam and Saigon prices fell consider. five years old to be tested by the ably but fortunately the drop was electric light companies, will come coincident with a demand which into effect. Old installations which arose from Santo Domingo to help fail to pasa the test will have to be the hurricane victims. A small re-wired, and the electrical firms, As stocks of therefore, anticipate further busi business resulted. Japan rice were depleted, local ness in the forthcoming year. ing ceased except for purchases for immediate consumption.

In the month of May, the situm, six months for the Indian trade on nately we placed on this service the Orient as evidenced by the fact prices registered advances and trad-

It is recorded that daring the year the Saigon/Hong Kong rate touched as low as five cents per picul, which gives some idea of how things have been going during the period under review, Wa are indebted to Messrs. Geo. Grimble & Co. for the informa tion contained in the review given below:- The chartering business for the cargoes from the Annam coast. year 1930 opened with no demand for tonnage in any direction and with plenty of steamers anxious to get cargoes for the coastal trade: The Saigon/Hong Kong market was confined to Tonkin coal fixtures. The active bookings of space for rico cargoes in regular liners and time chattered, steamers in the Saigon/Hong Kong trade, led to nticipation of better times ahead during the Chinese New Year holi- lays in Hong Kg. From the 10th of Januaray onwards a fairly large volume of business for Saigon/Hong Kong at 25/30 cents per picul was done. Quite a few steamers were trips chartered from Rangoon to Heng Kong, Amoy, Swatow, Ningno and Shanghai with the result that several Japanese and Norwegian steamers were fixed for trips at 65 cents per bag of 925 lbs. to Hong Kong, 75 cents per bag for Amoy and Swatow and $1 per bag for Ningpo or Shanghai.

tion was no better and owners and charterers were perturbed over the adversa conditions prevailing, parti- cularly the depreciation of the Hong Kong dollar and the abnormal scar- city of freights brought about by the civil war in China. Very little rice or other cargo was obtainable and the Saigon/Hong Kong rice receded to five cents per picul. Several regular liners on the Sni- gon/Hong Kong run were fixed in other directions.

Idle Tonnage.

Idle touage accumulated during the month of June; chartering in all directions being at a complete This business slightly released the standstill during this period of the congestion of tonnage on the China year. In July what little business that was offering was quickly Const ánd materially assisted

snatched up by owners at sacrifice owners to keep their steamers al Een during the Chinese New Year rates. Conditions were so bad that holidays. --

Eice Cargues.

even first class modern coasters with Hong Kong Government passenger licences were driven to accept trip-

private terms.

AUGUST.

British steamer Scistan, 2,850 tons dead weight, for 12 months to Straits charterera at $12,500 Hong Kong currency

SEPTEMBER

Norwegian steamer Sandviken, 3,500 tons dead weight, for six months time charter for the Indian trade at Rupees 36,000 per month,

Norwegian steamer Herva, 2,000 tons dead weight, for 12 months time charter at 25,850 Straits car rency per month.

Bales

The following sales were reported Norwegian steamer Imaines, built during the year:- in 1815 of 842 tons nett and of 2,400 tons register dead weight, includ- ing bunkere, has been sold to Northern Chinese with delivery in North Chinn.

of

Chinese steamer Derwent, 1,302 tous nett register, built in

Business With U.S... Business to the United States of America was also dull but forta three now motor ships, running to San Francisco. Further, three now motor ships were placed on the Seattle service and the result is that we are doing satisfactory busi ness, especially in passengers be tween Hong Kong and San

Cisco and vice versa.

European Service, Trade on the European service has also been dull, both ways: There was marked inactivity on the voyages from Europe to the Orient. This is perhaps due chiefir to the depressed price of silver.

Business with Coast Parts, Can. ton and neighbouring provinces has also suffered a decline as compared with the corresponding period. Inst year. Recent Chinese aws resulted

Radio Bots.

Good business has been done in the sale of radio sets and parts manufactured by British, American and German undertakings. Recent ly Japan also has entered the market for these goods. Japanese radio, sets attract many on account of their comparatively low prices,

Thanks to the encouragement of low prices for electricity for power... purposes given by the electric.com- China rioes, Pakling and Secmius, panics Chinese firms and shops are which appeared in the market dur-beginning to appreciate the economy,

tricity for power purposes, and an- a very light demand from buyers.

other satisfactory year as regards ing the month of November met with that can be effected by using elec

sale of motors, therefore, has been reported. The sale of refrigerators

ed aro Olivets (green), Emperors in the decrease in the use of this (black) and Malagas (green). The port as transhipment centre and first-named is much prized by tho this formerly lucrative trade is now Chinese and the least popular are lost to the Colony. the Malagas

The normal year sces the grape November and ahipraents from crop finishing about the middle of America cease then... In 1930, on account of the decreased export from United States, growers were forced to keep their grapes in cold THE COAL MARKET. also has been fairly good. storage. The fruit is still available for export and will probably con- tinue so in January and February, POOR YEAR'S BUSINESS IN in this novel and striking way of

HỒNG KÔNG.

Since, the introduction, of Neonlite advertising in the early part of the year, great interest has been shown advertising at night: Though the innovation is still in its infancy the electrical dealers concerned have received satisfactory orders for signboards, etc., from many firms and shops,

The year before last, the ships on the European lines carried cargo to capacity in practically all cases and ships came into Hong Kong Harbour the Eastern entrance (Lyemoon) on account of heavy draft while this year all ships came

The demand for American fruit in by the Western entrance. Dur ing the last two or three months, in the Oriental market decreased to however, trade from the Orient touch an extant in the year under there has been an improvement. So to China to examine the position Europe has increased again and review that two missions were sent same steamers left here via the and to make recommendations about The fruit trade. One of the missions

The business in electrical goods Eastern entrance again.

That the coal business in Hong during the year runs to about was sponsored by the University of Government of Solano county. California and the other by the Kong has been far from satisfactory $1,500,000. Of this figure, electric There are so many native fruits during the year 1930 was indicated insulated wires represent about that if imports from America or

to a representative of the Daily | 81,000,000. The business during the both British wires and Japanese first half of the year was very good, wires being much in demand...

BUYERS WAIT FOR BETTER

EXCHANGE

"Passenger business on the Euro rean service, was not affceted so much as freight but there was a small decrease compared on previous years,

Judging by present circum-elsewhere prove expensive the con-ress who interviewed one of the

In the best restaurants in Hong sumer can fall back on local fruit. Kong, it was pointed out, Oriental fruits are served as dessert.

stances we cannot expect very much

In February a fair demand for charter rates which are known to 1879 and of 3,000 tons dead weight Saigon/Hong Kong trade

was be unprofitable. The volume of un-including bunkers, was sold to local checked by the unprofitable sales employed tonnage did not decrease ship breakers at $48,000 Hong Kong in the next year."."

of rice cargoes imported by Hong during August and rates far below Kong merchants after the New profitable levels were accepted by Year holidays, and by the high owners when any cargo was offer. prices asked by Saigon rice export-

ing. Two Chinese steamers accept ers who, in view of the rise of the ed inall parcels of 12,000 piculs of Piastra exchange, were able to

beans each from Newchwang and secure better prices for their stocks

Dalny to Hong Kong and Canton.

currency.

British steamer Ming Sang, built

in 1906, of 2,000 tons dead weight BRITISH SHIPPING. sold for £6,500.

Chinese steamer Phranang and Portuguese steamer Lima, ex-Deva- wongse, sold to

Chinese ship. breakers for immediate "break-up at Hong Kong 203,000 for the two ships.

PACIFIC SHIPPING.

OPTIMISM FOR 1931 IMPOSSIBLE..

"

LOCAL TAIPAN ́SPEAKS ON. BUSINESS DEPRESSION,

OPTIMISTIC VIEW.

༢ ་་

LARGE FOREIGN SHIPPING COMPANY LOOKS AHEAD.

FAITH IN HỒNG KONG In opposition to the generally pessi mistic views expressed by the heads of various Shipping Companies, the following from the head of a large foreign shipping concern in Hong

"On account of the general trade

"said

our informant, largest importers in the Colony. depression,"

the turnover, was much smaller than in 1990. The market in Japan from which Hong Kong imports a great quantity of coal, was ex- ecedingly depressed. This was due to over, production and consequent accumulation of stocks in Japan."

In Hong Kong the position has. been far from satisfactory. In spite of all our efforts we cannot cover foreign exchange. Steamers do not buy any surplus for the time being as owing to the general depression in trade their business is limited and they do not buy any more coal than absolutely necessary, hoping

American electric fans more or less monopolised the Hong Kong market, some of the principal brands being so firmly established that they are beyond competition. Owing to the high cost in Hong Kong, the business has not been so good for the past twelve months. It is estimated that about $150,000 was spent on American fans this year as compared to some $10,000 on Japanese fane,

Elcetric bulbs also sold well dur- ing the year, soine 8700,000 worth of business changing hands. Ameri can, English and Japanese bulbs figured largely in this market.

WOOD OIL.

LARGE STOCKS HELD. IN AMERICA.

PRICES ON DOWNWARD TREND.

According to a local firm which is one of the biggest exporters of wood oil from Hong Kong, approxi- mately 5,000 tons were exported during the year and this includes local and native grades of wood oil.

in other directions. Freight rates The rate paid was 32 cents per

The following casualty was re

The manager of a big British "receded from 20 to 25 cents per picul. The situation was somewhat ported during the year:

Shipping concern when asked about picul with no demand for March better during September when the

Branland, the year's business stated that the Norwegian steamer Soyusport of rice built in 1921 of 1,845, tous nett total of goods imported by his Com loadings. In contrast, to this-Sai-

embargo on gon/Hong Kong business, rates from from Haiphong was lifted, and this register, was stranded at Bombay rany into the Colony was about the Kong is refreshing.

Reef in the Paracels whilst on same as in the year 1920. There The general depression through that when the time comes to buy

better. Bangkok to Hong Kong and an served to provide a few regular voyage from Shanghai to Rangoon, was, however, à decrease of about out the world, has greatly restricted the next lot, the exchange will be twelve per cent. in goods coming to buying power and enused reduced. The importation of Indian coal goon to Swatow improved slightly liners with freights. The coal busi- and was abandoned by her crew.

Hong Kong and China from Europe movement of cargoes and of passen into the Colons has been consider this being due to the fact that the ness from Tonkin and Keclung to

A corresponding increase in goods gers: The depression has hit China price of sice in Rangoon at that the China Coast, though quoted at

imported from India and America harder than most parts of the ably less. In in20 it exceeded made up for this.

world, because of the civil wars, and 200,000 tons, this figure representing time enabled charterers to go in for unattractive rates, were keenly com

peted for. The depression over the

Exports from Hong Kong were the fall in value of silver. The the quantity for Hong Kong and Fresh importing.

freight market continued during the

also about the same as in 1929, but result is been a sad depression in Canton, but this year under 70,000 In other directions the market mouth of October and rather than

the figure is below average for the shipping, as well as in practically tous were imported. Here again the Fast few years. Exports had shown all lines of business. In addition to exchange and the competition has was extremely quiet during Feb. lay up their shipa Norwegian owners

no improvement during the whole this disturbing elements have enter been responsible for the reduction ruary. Japanese owners scoured placed a couple of steamers, with Hong Kong Government passenger

period of the year 1930rd the ocean shipping tradea and in Indian coal."

The average price of coal in Hong the market for employment for licences; on the regular run from

The general trend of the passen- have endeavoured to establish them- their largo steamers and on several Hong Kong to Straits Settlement

ger business also was downward selves by ruthless cut-rate tactics, Kong varied from 810/811 for dust

Prices have not been maintaineď occasione succeeded in fixing them. and back on their own account.· ́ One of the most prominent ship and, as compared with 1920 about resulting in a general rate reduction coat to $20/821 for best lume coal,

An interesting develonment in the In March the scarcity of rica The situation in November. was

coal business during the year was and since January they have been conferencs in on the downward trend, though the targoes resulted in regular liners no better and a further decline in ping men in the Colony when asked twenty per cent, fewer passengers and unsteblo and unentisfactory con-

Company

Anneke readily be seen that shipping com- the mine owners and time chartered steamers being exchange made the position in his views on shipping in the Pacific CTC carried by the ships of this dition for shippers. Thus it can

"Owing to the low value of panies, operating to end om Chin Japan which was held in September, fall has been very gradual hie quite capable of dealing with shipcreasingly difficult. Chinese time during the year, said "Briefly, the

output. It was dreided that from business in America anil Europe. Hera requiremcats. The absence charterers gave up additional steam-

era at the expiration of their char- situation is this: Freight rates, have the dollar," said our informant, have not had a very successful the aim of which was to curtail thie is chiefly due to the absnec of Tho stocks held in America to-dav people have got to adjust expen- year. ⠀⠀ of demand for tonnage caused-un- caniness among owners. The com tere. More tonnage was laid up and dropped during the fear and indica diture accordingly. Nearly every-The latter months of 1030, how November 1930, the output: be petition between large-sized regular altogether the situation is bad and tiens are that they will fall still thing is affected. Imports are ever, show a decided improvement essened by a little, over 20 per are sufficient to carry the trade liners and Norwegian steamers the outlook pessimistic.

further next year. The whole Pacific affected. Imports are affected on over the first part of the year. Iment, which means that the outout until July, 1931, without further im-

the one side by the drop in exports to Hong Kong and South will be some 7,600,000 tons less dur-portations from China.

The Hankow market for wond oil. under short period time-charters!

situation is rotten" and there is change and exports are affected on China are on the increase, and ex- the coming year: was.so keon that roduced fores for iativo emigrants to Singapore had

Time-charters reported for the indication of improvement. Prace the other side. The general depres ports are, at least, not falling away. An improvement in the Japanese it is learned, is glutted with stock to be considered by time-charterers.

years are as follows:-

tically all class of merchandise show sion in business circles makes any further. The passenger busi certain amount of difference to tho ness suffered badly during 1930, due During this month a, low stock-of

a decline in exports and. this de balance of trade. As there is a very largely to the fall in value of rico in Hong Kong led to a slight

British steamer Borneo, 3,000 tons clino may go on during the coming general depression the world over, silver. improvement in the rice market and

I do not see any hope of improve "Shipping companies cannot re- to us by one of the leading ena, rivers of the military. A settle- soveral Japanese steamers accepted dead weight, with Hong Kong Gov-year

ment for next year, although I may trench in periods of depression, merchants in Hong Kong, showing ment, however, is in sight and as Rangoon rice freights at 06/70 conts ernment passenger licence for four

The year 1830 has been marked per bag of 225 lbs, to Hong Kong months for Saigon rice trade by a noticeable increase in the mum ay, I am not, unduly pessimistic. Their overhead and operating the quantity imported into the soon as the rivers are open to

If you get on improvement in trade charges continuo practically the Colony and 78/82 cents pe rbag to Bwatow $10,500 per month,

The expenditure in Hong Norwegian steamer Prominent, ber of new motor ships. on the Eurave you will get an improve same. and Amoy.

There was little change to report 3,000 tons dead weight, with Hong Pacifio The last twelve months, ment of exports to China. We in Kane of our companice, for 1930 will for April excepting that there was Kong, Government passenger licence however, have been & very poor Hong Kong can do nothing about in all probability roach three million small increase in freight rates for 1 months for the North China period with worse prospect for it, I am afraid, since we to only dollars, which is slightly in: excess a very small speck in the business of expenditure for the previous The situation has been brought world. for barth cargoes from Saigon and trade at Hong Kong 8350 per day. Bangkok. However, the business Norwegian steamer Mabella, 2,350

"The whole trads of this Colony We continue to plan for the was rebufitted peches

top dood weight for 12 months for about, to a certain extent, by the ferred long period time-chartere for Bangkok-Singapore titide at 25,500 low extranger top area of inturn. He wye have faith in Hong buy any more than bare necessities a depression in other parts of the Kong as a world port, and in 10th the numerous ateamers lying idlo per month Strajta currency.

great deal of world. It is just as had in Europe Ching a world market. During the Norwegian steamer Dux, 2,000 and this leads to in Hong Kong and Shanghai. Charterera, on the other, show tons dead weight, for three months uncertainty in the market. This as it is out here and there is not ear just rast business has not been ed no inclination to accept long for Bangkok Bingapore trade at waiting for a firmer exchange much prospect of an improvement good, and it is up to the community is holding up shipping business at For the present the depression is as whole to look to the future, to ime charters as they expected Hong Kong 87,500 per month.

Norwegian steamers Havdrot and the moment. Incidentally the silk general and in Hong Kong, of work together, and to make every freight rates to drop. Thero

good demand during Sokndal, for Vladivostock on private situation in Canton has been worse course, it is accentuated by the low effort to see that 1931 is a better

in 1030 than for many years past,

business your than was 1030. dollar. this month for tonnage for salt terma

Was

Time-Charters,

A JANUARY.

1031.

stewater year.

coal market is exnerted, hut local conditions will remain dificult to long as the rate of exchange is low.

The following figures are supplied

Tanan coal

Formosan cont Fusan, ocal Kaining coul

Tonkin coal.

Indian coal

**Tons.

.355,000 230,000

150,000. 176.000

200.000

*:07,000

Hornos oral

120,000

No

1

coal

Welsh coa Native coal (Canton dis

trict)

4,500 11,000.

6,000

and so is the interior of Kwanges. although only small arrivals appear on the market. This is primarily due to the interference on the

navigation, very heavy arrivals anticipated.

With the drop in the Hong Kong dollar, buyers lowered their ideas,. bnb the collapse of the American market is due to enomonis stocks. held in America and in. Hankow,

Regarding the prospects for next season, it is reported that the new

South Ching is

dant The Hanków, crop is

ed to be at least equal to that last year,

The local price at the time of writ ing is in the vicinity of 823.50 Hong

1,398,003 Kong currency per pirul, Nam Pak

Hong custom.

ンの

Page 10Page 11