and general average. Their base is the average of 1924 to 1926 taken as 100. The Government does not exercise any control over rates. NETHERLANDS INDIES Conferences operate in all the important trades of the Netherlands Indies; that is, to Europe, Australia, Japan, the United States, and the Gulf of Aden and Red Sea. Deferred rebates are paid for "loyalty" by the conferences to Europe and other destinations, except Japan and the United States. In the latter, trade contract and noncontract rates are provided, whereas in the trade to Japan no shipper "tie" is considered necessary, although deferred rebates are offered in the opposite direction. Rates are fixed without prior consultation with shippers, but necessarily with regard to what the traffic will bear. The rates on rubber, for example, were raised considerably during the early part of 1937 when rubber prices reached the highest level in a number of years. Since the fall in prices at the end of 1937, rates have been adjusted downward. As a result of the booking of space 2 months in advance, new rates are announced at least 2 months prior to their effective date so that shippers are allowed sufficient time to take exception if necessary. The ordinary action of shippers or groups is taken through the various exporters associations or chambers of commerce. Exporters of such products as rubber, tea, kapok, and coffee usually are organized in associations, one of the duties of which is to act for shippers in cases of rate adjustments. A typical plea for a reduction in rates is made by an exporters' association to the conference's office at Batavia. The conference then circularizes its members with a copy of the request and asks members to comment, taking the consensus of answers and granting or declining the request on that basis. Rates are published in circulars that are sent to shippers and interested parties. This is through the voluntary action of the conferences. The Government does not exercise any authority over rates, but the Netherlands Indian Department of Economic Affairs would have the authority to intervene in the event it could be shown that certain rates were so high as to prejudice seriously the interests of exporters. Tramps seldom obtain cargoes in the Netherlands Indies, except when the lines themselves find it necessary to charter ships to supplement their own. The trade is so dominated by the lines through their long standing agreements with shippers and otherwise that the independent employment of tramps is impracticable. NEWFOUNDLAND The scope for conference organization is limited by the volume of trade on respective routes which is not large and affords little opportunity for competitive services. It appears, however, that some agreements are in effect, notably one in the trans-Atlantic trade between the Fjell Line and Furness Withy & Co. Shippers have no active group representation, but sometimes take up rate matters with shipping companies through the Board of Trade at St. John's. The Government does not exercise any authority over rates. NICARAGUA The situation in Nicaragua corresponds to that in other Central American countries. Conferences are well established and fix rates where more than one line operates in a given trade. The principal conferences are those in the United States and European trades. The headquarters of the former are in the United States, where copies of agreements are on file at the Maritime Commission; the headquarters of the latter are at London, where the Association of West India Trans-Atlantic Steamship Lines directs its affairs. This association has a branch office at Cristobal, Canal Zone. No copy of its agreement is available in Nicaragua. Tariffs may be consulted at branch offices or agencies of the lines in Nicaragua. They are not distributed generally, however, owing to the necessity of making frequent changes. Apparently conferences or member lines sometimes deal with individual shippers and sometimes with organizations thereof, including the Asociacion Cafetalera (Coffee Association) and the Asociacion Azucarera (Sugar Association). Patronage is assured in the case of shipments of coffee to the United States by immediate rebates, and, in the case of shipments of this commodity to Europe, by deferred rebates. The Government does not exercise any authority over rates. Little, if any, business is done by tramp ships in the Nicaraguan trade. NORWAY As elsewhere in Scandinavia, the conference system in Norway is of general application. Copies of conference agreements are not available for public inspection. Tariffs are regarded as confidential and copies are distributed only to branch offices or agents. The lines in the United States trade offer contract and noncontract rates on some important commodities, such as paper and pulp. The lines in other trades, however, usually grant deferred rebates. Shippers occasionally are consulted by conferences prior to changes in rates. There do not appear, however, to be any organizations of shippers for the purpose of collective bargaining. The Government does not exercise any authority over rates. These rates are fixed in the open market, with the limitations of the minimum schedules applicable to grain and timber, established by the tramp shipping administrative committee, London, and the Baltic and International Maritime Conference, Copenhagen, respectively. These schedules are dealt with in detail in the sections on the United Kingdom and on the Baltic and International Maritime Conference. In addition, there is the International Tanker Pool, in which nearly all of the Norwegian tanker owners participate. This pool, which affects rates indirectly, is dealt with in a special section under the title of the pool. 77669-38-11 PALESTINE Outward traffic from Palestine consists mainly of citrus fruit. A conference of British, Swedish, German, Danish, and Italian lines fixes liner rates on this fruit during the shipping season, from November to April. Local interests negotiate with this conference through the Jaffa Citrus Exchange, which represents the majority of shippers. The Government does not exercise any authority over rates. PANAMA Conferences prevail generally, but their headquarters are located abroad and their agreements are not available locally. Those in the trade to the United States are from the west coast only. United States lines place their tariffs on file at their Panama offices where they are open to public inspection. Foreign lines, however, quote rates only on application. The conferences usually deal with individual shippers, inasmuch as there are no trade organizations active in group representation. Both the contract and deferred-rebate systems are in effect, the latter on shipments to Europe. No authority over rates is exercised by the Government. PARAGUAY Paraguayan river-freight rates are independent of ocean-freight rates and are fixed exclusively by the companies handling upriver cargo transshipped at Buenos Aires and Montevideo. The bulk of this trade is carried by the Cia. Argentina de Navegación Mihanovich, with head office at Buenos Aires, lesser amounts being handled by the river vessels of the Lloyd Brasileiro Line and various small Paraguayan shipping companies. There is no Government control of rates in Paraguay. PERU Liners predominate in the trade of Peru and operate for the most part on the basis of conference agreements. A number of trade organizations are in existence and at times negotiate informally on behalf of shippers. The principal organizations are the Camara de Comercio de Lima (Chamber of Commerce of Lima) and the Sociedad Nacional Agraria (National Agricultural Society). The Government does not exercise any formal authority over rates, but the Minister of Finance and Commerce takes an interest in rates from time to time. For instance, this agency of the Government entered into negotiations with shipping companies on the occasion of the inauguration of the new port works at Callao in 1935. At that time one of the conferences planned to change the status of Callao from the first to the fourth category, with a consequent increase of 50 to 100 percent in rates, mainly because of labor troubles. Considerable agitation among exporters and importers induced the Government to intervene and, after several meetings with representatives of shipping companies who consulted with conference head quarters abroad, a settlement was reached to the satisfaction of all parties. The Government allows a rebate of 50 percent on lighthouse dues to shipping companies which grant 25 percent reductions on Government cargo and passengers. Tramp services are unimportant and are employed only to a limited extent in supplementing liner services in the grain (wheat) trade. PHILIPPINE ISLANDS Liner rates from the Philippine Islands are fixed by formal conferences, with one exception-the rates to Australia, which are the subject of an informal agreement. Two conferences have offices at Manila. The Associated Steamship Lines Conference, with headquarters at Manila, operates from Philippine ports to or via ports in Ceylon, India, Malay States, Straits Settlements, East Indies, Indochina, Burma, Siam, Hong Kong, China, Japan, Siberia, United States, Canada, Central America, South America, Mexico, and West Indies. The Philippines-Europe Conference operates from Manila, Cebu, and Iloilo, to ports in Europe, North Africa, and Egypt. The contract and noncontract system is employed by both of these conferences. Trade associations and chambers of commerce sometimes represent shippers informally in rate negotiations with conferences. Tramp rates are fixed in the open market through brokers in Europe, Japan, and the United States. From 10 to 15 percent of the export cargoes move on tramps, the remainder via conference lines. The principal commodities are sugar, copra, iron and other ores, and logs. The importer in Japan usually supplies the vessels for the last two items. The local Government does not exercise any authority over rates. POLAND A number of conferences establish rates for Poland, although for the most part they are located abroad, principally in Europe and in the United States. Outstanding among the cooperative arrangements among the lines is that between the America-Scantic Line and the Gdynia-America Line. Conference agreements are not available locally for public inspection, but those relating to traffic with the United States are on file at the Maritime Commission. Tariffs are available only at the offices of the lines or their agents, to which inquiries regarding rates have to be addressed. Lines or conferences deal with individual shippers. There are no representative trade organizations active in shipping matters. The procedure is informal; no printed application blanks are provided, therefore, shippers address letters to the lines, setting forth their views with respect to rates. The conference lines generally induce exclusive or regular patronage by the contract system, charging somewhat lower rates to contract shippers. The Government does not exercise direct authority over rates, but owns and operates the Gdynia-America and other lines and par ticipates in rate-making through membership in the respective conferences. Coal is the principal item of tramp traffic out of Poland. Rates thereon are determined by the open market. Although most tramp owners serving the Baltic are members of the Baltic and International Maritime Conference, they are not parties to any agreement through that conference with respect to rates on coal. RUMANIA There is no conference of liner companies operating out of Constanța, Rumania's Black Sea port. Rates on export traffic are open and are quoted independently by the various shipowners serving the port. The Rumanian State Line (Serviciul Maritim Roman) seeks to underbid the rates of foreign competitors, but, inasmuch as its fleet is small, it is not a major factor in the freight market. This point is borne out by the following data on the participation of national vessels in the carriage of Rumania's foreign trade. In 1936, the latest year for which complete official statistical data are available, the foreign trade of Rumania amounted to: Imports, 630.443 metric tons; and exports, 10,548,913 metric tons. Of these quantities, 139,000 metric tons were imported and 6,200,395 metric tons were exported through the Black Sea port of Constanta, in Rumanian and foreign vessels. The share of Rumanian vessels in this sea traffic was 58,325 metric tons imports and 393.804 metric tons exports during 1936. Of the total 5,519,402 metric tons of petroleum shipped through Constanța in 1936, Norwegian tankers carried 1,520,499 tons and British tankers 1,196,168; together that is approximately 50 percent of the total. Other nationalities participating in the order of their importance were, Italian, French, Netherlands, Greek, Rumanian, and Swedish. With the exception of the Rumanian fleet, the fleets all participate in the International Tanker Pool. The State does not exercise general authority over rates, but since 1935 it has acquired the bulk of the privately owned seagoing merchant fleet of Rumanian registry with the exception of oil tankers, and, with this fleet, competes with foreign shipping in the Rumanian trade. According to official data of the Ministry of Communications, the Rumanian merchant fleet at the beginning of 1935 was composed of: State owned: 4 passenger and mail boats_ 5 mixed vessels 5 cargo vessels___. Privately owned: 8 cargo vessels_ 2 oil tankers. 2 fishing vessels not counting tugs and smaller boats. Net registered tons 4, 166 14, 474 10, 945 14, 568 4,876 93 The "Directia Marinei Comerciale" (Bureau of Merchant Fleet of the Ministry of Air and Navy) fixes the rates of Rumanian liners without any conference arrangements with other lines, generally meeting or under-quoting the rates of those lines. Tramp rates are determined in the open market and are not subject to any minimum scheme corresponding to those of the Tramp Ship |