96 



ECONOMICAL CARGO SHIPS. 



Referring to line No. 36, Plate 39, it will be noticed that the cost of manning and 

 management is the same for each speed of any given length of ship. With horse-power for 

 13 knots practically double that for 10 knots, it is difficult to see why engine-room manning 

 costs were not increased with speed. For double power about a 35 to 40 per cent increase in 

 engine-room salaries and wages would appear to be in order. 



The idea of first stating the figures for the actual ship and then reducing them to a 

 basis of each $1,000,000 invested is one that will appeal to the operator and investor at once; 

 ships and shipping are before the public eye as never before, and this method of presenting 

 results is most fortunate. 



Fig. 3, Plate 40, gives us a diagram of dwindling profits as speed goes up. It will be 

 of interest to take this another way ; that is, increase the freight rate to maintain equal profits 

 as at 10 knots. These figures refer to the 3,500-mile voyage and minimum pprt detention, 

 oil fuel at $6.00 and tonnage dues at $1.50. 



Table of Gross Freight Rates. 



This table shows clearly the advantage of the large ship at the higher speeds ; the 500- 

 foot ship can take freight at 84 cents per ton cheaper than the 350-foot ship at 13 knots. Still 

 another interesting comparison is to take a fixed gross annual profit of $200,000 per million 

 invested for all ships and see how the freight rates compare. This table works out as follows : 



Table oe Gross Freight Rates. 



This table shows that the 10-knot vessel can always undenbid the faster, other things 

 being equal; it also shows that the 450-foot ship at 11 knots can underbid the 350-foot ship 

 at 10 knots. This is another confirmation that the tendency to run at 11 to 11^ knots in 

 the larger freight vessels is sound, The penalty paid for high speed in small ships is again 

 brought out. 



