MARKETING 139 



Atlantic Ocean has the distinction of being the 

 greatest waterway in the world for this cereal. 

 The freight steamers which are used in hauling the 

 grain are immense slow-moving boats. They are 

 loaded at the terminal elevators by chutes through 

 which the grain slides into the hold of the vessel and 

 are unloaded at the European seaports by electric 

 shovels operating from cranes. But little hand 

 labor is used and expenses are kept at a minimum. 

 All this makes possible very low rates in compar- 

 ison with railway charges. The freight rate from 

 New York to Liverpool varies from 3 to 7 cents 

 per bushel. From New Orleans to Liverpool it is 

 from 6 to 15 cents per bushel. Wide differences 

 in rates for the same haul are due to a lack of 

 organization of ocean traffic. Rates are not reg- 

 ulated by any commissions. If a ship finds diffi- 

 culty in obtaining a cargo, it will reduce rates. If 

 shipping is active, rates are raised. Sometimes 

 wheat has been carried from New York to Euro- 

 pean ports without charge because outward 

 bound vessels had no cargoes in sight. It was 

 cheaper to haul wheat free than to buy gravel to 

 serve as ballast. This uncertainty of ocean 

 freight rates does not help the farmer. Market 

 prices always take into account the highest freight 

 rate that is likely to be charged. If lower rates 

 can be secured, the exporter is the gainer, not the 

 wheat producer. 



