Directory_and_Chronicle_1934 — Page 406

A10

CHINA

SHIPPING.

For the first time in five years the slipping statistics record a decrease in the total tonnage entering and clearing at Chinese ports. The figures for the year were 135,409,496 tons (of which 44.5 million tons represented entrances and clearances from and to foreign ports and 90.9 million tons represented the domestic carrying trade) as against 160,005,101 in 1931. While cargo space was admittedly in excess of require- ments in the latter year, and a further serious reduction in trade has been witnessed during 1932, the decline in the tonnage figures was not actually due to the smaller quantity of the aggregate freight offering, but to the intensified boycott of Japanese trade and shipping, and to the absence of the usual figures for the entrances and clearances at Manchurian ports and Dairen (principally under the Japanese flag) during the latter half of the year. This is indicated by the fact that a decline of 2.33 million tons was registered for shipping under the Japanese flag, against a total of 24.6 inillion tons for all shipping as shown by the figures quoted above. British flag vessels, with an aggregate tonnage of 59.4 million, were easy leaders in the carrying trade list; the Chinese flag took second place with 33.9 million tons; Japan dropped back into third place, for the reasons given above, with a total of only 19.8 inillion tons; the Norwegian flag was represented to the extent of 6.2 million tons; and the United States of America by 4.5 million tons. The hostilities in the Shanghai area affected cargoes rather than the movements of vessels; nevertheless, a certain amount of traffic, if not lost to the country was diverted to other ports; at least two round- the-world cruises left Shanghai out of their itinerary; and the Yangtze River traffic was considerably interrupted. From a less topical point of view the year has been a disastrous one for shipping. The attempts of the nations to exist as self-contained units with a minimum interchange of merchandise, is having the most dire results in many directions, not the least of which is the crippling effect of this policy on the various transport services.

FREIGHT.

Conditions in the freight market may be judged from the above remarks on shipping, and any repetitions regarding the shrinkage of trade or the loss of Manchurian cargoes are therefore unnecessary. The increase in laid up shipping, also referred to above, by the wholesale withdrawal of vessels from active commission, was, of course, just a measure to help stabilise the freight market by an artificial curtail- ment of the supply of tonnage. The decline in the physical volume of freight was not accompanied, therefore, by any great recession in freight rates, and, in Chinese, Conference" charges for export produce showed very little change as compared with the previous year.

In the effort to stimulate trade, however, numerous concessions were made in the freight charges for various products, where special reductions appeared to be called for by the trade circumstances of the year under review. The total shipments by all "Conference Lines" during the year amounted to 156,421 tons, as against 206,727 in the previous year and 241,229 tons in 1930. During the first half of the year, owing to the interruption of trade caused by the Japanese invasion of the Shanghai area, only 64,018 tons of cargo were slipped by these lines as compared with 115,611 tons in the corresponding period of 1931, but the comparative figures for the second half of 1931 and of 1932 bring out very interestingly how little the difference was between the shipments for these latter two periods, the figures being 91,116 and 92,402 tons respectively.

COMMUNICATIONS

During the past four years the world has been suffering from the greatest and most wide-spread depression in trade ever experienced. In past history, the bottom of each periodical trade cycle has always been a period devoted to the reorganisation of in- dustry to meet the new conditions of the time and to prepare for the return of prosperity through a revival in the demand for raw materials and manufactures. In the case of the present economic crisis, it may be observed that the same procedure is now being followed throughout the world. In all countries there is evidence of the strenuous endeavours being made to use this period of waiting to the best purpose: wasteful overhead expenditure is being cut down; factories are being equipped with the latest devices; science is being harnessed anew to industry; and every effort is being made to readjust industrial methods to the changed circumstances of the day. In China, this period of reconstruction has happened to coincide most fortunately with the country's new enthusiasm for road-building and for an all-round improvement in lines of communication, and surely no more suitable method of filling in the presen