CHAPTER XIIISHIPPING LINES
Thedevelopment of ships has been largely influenced by competition. The ship that can make the quickest voyages can demand the highest freight rates for most things. Furthermore, a fast ship can make more voyages than a slow one, and the owner may make a greater profit because of the greater amount of freight handled. These factors, and others less evident, enter into the operation of ships.
To-day great shipping lines control most of the earth’s merchant ships. As we know these lines they are a growth of hardly more than a hundred years, but thousands of years ago their counterparts existed.
Phœnicia was the greatest trading nation of the ancient world. Ships sent out by the traders of Phœnicia sailed to every corner of the Mediterranean, and even went out into the Atlantic, where they braved the rough waters of the Bay of Biscay and sailed up the English Channel on their adventurous trading voyages. For every ship that sailed to distant parts, however, many remained nearer home, visiting ports but a little distance off, and returning with less romantic but equally important cargoes.
Many merchants of Tyre, of Acre, and of Sidon were shipowners. Some sent their ships to Egypt, some to Greece, some to Sicily and Italy, some to the Bosphorus and the Black Sea. Some traded with Cyprus and the Ægean Isles, some with Asia Minor. Some again sent their ships to the Adriatic. It was only a few who risked their ships andcargoes on those long voyages to the ends of the world, out beyond the Pillars of Hercules, and north along the tide-washed coasts of western Europe to where the days were far longer in the summer than the nights, and where the winter nights left but little of the day.
Naturally, the traders who were successful built other ships, and sent them in the same trade that had made their fortunes, for that was the trade they knew. If a ship-owner had had great success in sending his ships to the Bosphorus, the natural thing for him to do with any new ships he might build was to send them there. When he died and his son came to rule over the destinies of his business, what would be more natural than for him to continue to send his ships to the same part of the world?
Naturally, the frequent wars of ancient times upset the plans of merchants even as wars upset such plans to-day, but barring such unfortunate events, trade went on in the more or less even tenor of its ways, save for rather numerous difficulties caused by pirates and by storm or shipwreck.
One can almost imagine Tyre and Sidon with their streets of merchants’ houses, over the doors of which, if they were given to the modern idea of signs, which is unlikely, hung shingles reading “Ithobal and Son, Traders to the Bosphorus and the Euxine.” “Assurbani-pal, Ship-owner and Trader to the Valley of the Nile.” But whether or not their places of business were decorated with such signs, their warehouses were full, and ever and anon their ships departed and returned, laden with goods of value that they carried across the seas.
Properly enough, then, some of these old traders may be considered the operators of some of the very earliest shipping lines.
One can almost imagine some old and experienced trader talking solemnly with the builder of his ships.
“Tuba’lu, my friend,” one can think of him as saying, “that last galley thou builtest for me was all but lost while on her very first voyage to the Bosphorus. Tiglath, her captain, tells me that just as he passed the rocks that lie off the island of Chios, a summer storm, not great, but rather sudden, smote him. His ship was so distressed by it that he all but gave himself up for lost. He has told me that, had his prayers to the gods to end the storm availed him not, most certainly would he have been dashed to pieces, and all my cargo of precious wares would have been lost. He tells me that the ship is not fit for storms, and that had he not, by the goodness of the gods, been favoured by good weather for all the rest of his voyage, he could never have returned with his cargo, which has made for me so good a return upon my moneys. What thinkest thou of the ship?”
“My good friend Ithobal,” the builder of ships might be supposed to have replied, “methinks the ship was just a bit too deeply laden when she left Tyre. So deeply did she lie upon the waters that I warned Tiglath against the very danger that he later came upon. Yet did he heed me not, saying that to make moneys for his master he had need to carry many goods.”
“And so he has, Tuba’lu, my friend,” Ithobal might have replied. “My ships must carry many goods to make profits for me on such long and dangerous voyages.”
“Then, Ithobal, my friend,” the ship-builder possibly replied, “but let me raise her sides by a cubit and mount upon her stern a larger steering oar. Methinks her safety will be then assured.”
So it might be supposed that ships were improved in those far-distant days.
Traders similar to those of Phœnicia were common in Greece, in Carthage, in Rome, in Venice, and Genoa, and in other ports for thousands of years. Until the introductionof machinery and the use of steam power for manufacturing goods the cargoes of ships were limited largely to valuable goods taking up but little space, and so such methods were efficient enough, especially as the purchasing power of the masses was small, and their necessities were almost entirely homemade.
The period following the 11th Century showed some increase in the amount of freight handled, and a result of the discovery of America was to enlarge this still more. Still, however, the greater portion of the population of European nations had simple wants and simpler pocketbooks, and not for another three hundred years did the mighty purchasing power of great numbers of people begin to make itself felt in a demand for imported goods.
With the introduction of machinery, however, and especially with the introduction of steam, the workmen found it possible to purchase what had theretofore been unthinkable luxuries, and the demand for imported goods grew enormously.
The East India Company was an early concern in this new epoch of world trade. In 1600 this organization was founded and, by government charter, was given a monopoly on trade to the Far East. Because there was no competition this company grew fabulously rich, bringing to Great Britain wonderful cargoes of goods not securable except in India and China. This, however, was but a greater attempt at trading, and except in size and in organization was not greatly different from the methods in vogue two thousand years before.
It was not until the 19th Century that shipping lines as we know them came into existence. Actually it was the steamship that brought about the introduction of shipping lines, although the famous old packet lines that ran between Europe and America went by the name of lines several years before the first steamship line was organized. The first of these packet lines was the Black Ball Line, which wasestablished in 1816. So successful did this line become that it was followed within the next few years by several others. The Red Star Line, the Swallowtail Line, and the Dramatic Line were some of the most important. Winter and summer the packets operated by these lines raced across the Atlantic, sailing on scheduled dates, and making remarkably short passages, and giving remarkably good service for the times. The ships were not large, some of them being hardly more than three hundred tons burden, but for the first ten years of the Black Ball Line’s existence the ships of that line averaged twenty-three days for the eastward passage and forty days for the westward, which was much lower than the average of other ships of the time. These packet lines continued in operation until about 1850, when they had largely faded from the sea, unable to compete with the steamships then becoming reliable, comfortable, regular, and fast.
The first steamship line to organize was the City of Dublin Steam Packet Company, which began operations in 1823. During the following year the General Steam Navigation Company was incorporated, and several other British steamship lines followed rapidly. At first these were for the coasting trade, where the regular service they maintained was valuable in the extreme, for railroads had not yet appeared. Before long, however, these lines began visiting the continent, and the transatlantic voyages of theSavannahin 1819 and theRoyal Williamin 1833 drew the attention of steamship-builders and operators to the advantages of transoceanic routes.
In 1837 three companies were organized—the British and American Steam Navigation Company, the Atlantic Steamship Company, and the Great Western Steamship Company. In 1838 their first ships sailed to America. TheGreat Westernmade her first crossing in 13 days and a few hours, almost equalling at her very first attempt the fastest voyage(and that from America to Europe) a sailing ship ever made. Brave as was the start made by these three lines, however, they soon went out of business.
It is probable that one of the most serious blows they received in their short periods of activity resulted from the success of Samuel Cunard in securing from the British Government the contract for carrying the mails from Liverpool to Boston and Halifax. This contract, which included a fairly sizable subsidy, required that Cunard build and operate four steamships, which the subsidy enabled him to operate successfully despite the competition of the other three lines. Cunard’s steamers, being all alike and of very nearly the same speed, and being despatched at regular intervals, soon took from his competitors the little business they had, and they went out of business or transferred their ships to other duties.
The Cunard Line, then, from the Fourth of July, 1840, when theBritanniasailed for Boston, has been a successful transatlantic line, and is to-day the oldest transatlantic line in existence, as well as one of the finest and most powerful. At first this company was known as the “British and North American Royal Mail Steam Packet Company,” and its first ships, theBritannia, theAcadia, theCaledonia, and theColumbia, were each 207 feet long, about 1,150 tons, and could carry 115 cabin passengers and 225 tons of cargo.
In 1840 the Pacific Steam Navigation Company obtained its charter and was the pioneer steamship line along the western coast of South America. Earlier than this, however—in 1835—a firm of London merchants began to run steamers from England to the Far East. These steamers, sailing more regularly and with more dispatch than the sailing vessels, were given the contract to carry the mails. This service became the Peninsular and Oriental Steam Navigation Company, which is still a vigorous and enterprising line,although now it sails out and back through the Suez Canal and not by the long route around the Cape of Good Hope.
One of the two oldest existing steamship lines is the General Steam Navigation Company, which I have already mentioned. Founded in 1824, this line still runs steamers from England and Scotland to the continent and the Mediterranean. In 1846 one of its ships—theGiraffe—carried the first cargo of live cattle to England.
While the Allan Line has operated steamships only since 1852, it may be said to have been founded about 1816, when Captain Alexander Allan began running several sailing vessels between Scotland and Canada. Although this line did not adopt steamships until thirty-six years after it was founded, it has had a leading place in the development of steamships. An Allan liner inaugurated the “spar deck” in order that a clear promenade deck might be constructed. The first Atlantic steamship to be built of steel—theBuenos Ayrean—was an Allan liner built in 1879. TheVirginianand theVictorianwere built in 1905 and were the first transatlantic steamships propelled by turbines. Such developments as these entitle a steamship line to great credit.
The largest privately owned shipping company in the world is the Wilson Line, and it is also one of the oldest. It traces its beginnings to 1835 and operates ships between Great Britain and Scandinavia as well as between Britain and the Far East, and to the United States. It also operates ships to South America and other parts of the world.
The World War radically affected steamship lines, almost eliminating some and crippling many. The peace brought about the enlargement of several at the expense of the German lines that, during the preceding two decades, had thrust their way to the very forefront of the shipping world, only to lose it all by the terribly mistaken policies that they themselves had helped to foster.
In 1900 the two greatest steamship lines in the world were the Hamburg-American and the North German Lloyd. In 1910 they were surpassed only by a consolidation of seven British and American lines known as the International Mercantile Marine. Yet these two huge companies, at the close of the World War, were left with hardly more than a handful of ships each, all of their greatest liners, as well as most of their smaller ones, having been taken from them to sail under the British, American, French, and other flags.
Consequently, the greatest steamship company to-day—and it is so great as to have no close second—is the International Mercantile Marine, made up of the White Star, the Leyland, the American, and the Atlantic Transport lines, the Dominion and British North Atlantic Company, the National Steamship Company, and some other allied shipping interests.
This combination of shipping lines is controlled by British and American capital, but most of its ships sail under the British flag. American shipping laws are partly responsible for this, because of numerous restrictions they insist upon, which have proved to be detrimental to lines operating ships under the American flag. Other lines, entirely American owned, have been transferred to foreign register for the same reason.
Prior to the World War American deep-sea shipping had shrunk to a woeful degree, and most of America’s imports and exports were carried in foreign ships. The war, however, changed all that, and the United States, in a remarkably short time, had built ships enough to place it second only to Great Britain on the sea. Many of these ships were hurriedly and badly built, it is true, and many ridiculous experiments were tried out, but, despite mistakes, a great merchant fleet was built and put into operation. This, of course, was a war measure, but with the signing of the ArmisticeAmerica set herself the task of operating this huge fleet. Post-war trade, however, did not call for so many ships as were in operation, and vast fleets of ships were tied up to deteriorate in idleness. Not only America suffered. Great Britain, too, found herself with more ships than cargoes, and all over the world ships were tied up to wait for better times or to fall to pieces in the waiting.
This unfortunate condition, however, was not entirely without advantages. It forced economies in operation that resulted in increased efficiency, for ships could only continue to carry cargoes if they did so at low rates, and the shipping lines, therefore, studied every method by which they could reduce their costs of operation.
This, of course, brought about many rearrangements. Some formerly successful lines went bankrupt. Many new and inexperienced lines disappeared. Many masters and mates found themselves ashore without work, forced to take employment at whatever tasks they could get. But new lines did make their way, and most of the experienced lines managed to hold on, even going into new fields, as the practical elimination of the German lines gave them some opportunity to do. And following the war, American ships became known in ports where the American flag had not been seen for a generation or more.
This probably means that America is on the seas to stay. No longer do internal developments take the attentions of the entire nation. The growth of manufacturing, the lack of wide public domains open to the “homesteader,” the widespread American interests overseas, all point to a permanent merchant marine, not, perhaps, so great as is Great Britain’s, because America is not so vitally dependent on the sea as is Great Britain, but great because America is great, and growing because America is still developing.
In this development shipping lines are the vital factors.Individual ships are merely pawns on a world-wide chessboard. A single ship can do nothing in the complex structure of modern commerce. Lines must maintain regular service. They must maintain home and foreign offices. They must know where cargoes are to be had and where they are to go. They must have armies of agents and brokers constantly in touch with them. Their ships must be able to voyage and return, voyage and return again, always filled, never idle, never at a loss for cargoes, else their costly structures will crumble, their finances wane, and they will find themselves faced with bankruptcy, disruption, reorganization or destruction.
Because of world economics shipping lines find it possible to develop or find themselves broken. Because the margin between success and failure is usually a narrow one shipping lines find it essential to seize upon every development that increases efficiency and decreases cost. Simple steam engines became compound, because shipping lines had to operate their ships with a smaller outlay for fuel in order to compete with sail. Iron gave way to steel, because greater strength was thus secured with less weight. The turbine has made its way against the reciprocating engine because of its increased efficiency and its consequent saving in expense. Oil is being more and more widely burned instead of coal, because its efficiency makes it cheaper through the use of fewer men, through increased steaming ability and less weight, as well as its cleanliness (on passenger ships) and the reduction in time used in coaling.
Shipping lines are very similar to railroads. A railroad train would be of no use to any one if it were owned and operated as a unit, even though it had all the tracks in a nation at its disposal. The train is practical only because the railroad company maintains freight and passenger stations, foreign and domestic agents, and all the detailedforce that a modern railroad requires. Furthermore, it sends its trains over certain routes at certain specified intervals, ready to move freight and passengers as they are ready to be moved. So must a shipping line be operated. Ships must be where they are needed, else freight accumulates or is diverted to other lines. The huge investments ships require necessitate that there be no loss of time and consequently ships must not wait for freight to come to them. Because ships carry great amounts of freight and cannot lengthen or shorten themselves, as trains can, to accommodate fluctuating quantities, it is often necessary for freight to go in “tramp” steamers to ports which attract small amounts of freight. But cargoes must be waiting at those ports for shipment to some other or the ship loses time and the line loses money. Because of this agents are for ever busy, cablegrams are for ever being flashed through the ocean depths, or ships are diverted by wireless in order to take advantage of temporary conditions.
These are the duties of shipping lines, and the vast companies of the modern world of the sea are amazingly capable, brilliantly alert, for ever in touch with shifting channels of trade, alert to fill the needs of a busy world that pays them only for the service it demands.
Perhaps the fierce competition of to-day seems harsh, yet it is constructive. Perhaps it bears too heavily upon many deserving individuals, yet through it has come about the vast improvement that has marked the shipping world in the last hundred years—an improvement that has shortened voyages, limited the time between continents, reduced the very world until voyages around it are now almost commonplace summer holidays.
Without competition the old East India Company sent its ships from England to the East for 300 years, and served Britain little better at the end of that time than at the beginning.With competition the transatlantic voyage has been cut from forty days to little more than four. Giant ships plough every sea and offer their magnificence to every passenger who cares to pay the passage money. No longer do silks and spices fill the holds of the argosies of the deep. Iron ore or polished motor cars, bales of cotton or crates of textiles, toys or machinery, hides or shoes, lumber or furniture—it matters not. Given only a place of origin and another place overseas where buyers wish it delivered and ships there will be to carry it. There is not a single harbour between the eternal ice of the two polar seas that is not visited by ships. There is not a person of the billion and a half who inhabit the globe but is affected by them. The natives of Central Africa buy cotton goods made in England of cotton grown in Alabama. The Eskimos of the frozen north hunt for seals with guns made in Connecticut. Oil that gushes from the rocks of Transcaucasia is refined, and burned in motor cars as they roll along the Champs Élysées. Copper from the Andes is made into roofing for houses everywhere on earth. Toys made in Czechoslovakia or Japan fill the counters of the toy shops of Britain and America.
No longer do oceans divide the world. As shipping lines continue their development they cannot fail to weld the world into a vast economic unit, interdependent and friendly, useful to one another and to unnumbered generations of the future.
To-day we look back to the beginnings of the shipping lines and smile as we think of their trifling activities. In a hundred years they have grown from infancy to vigorous manhood, but their future will not be one of senility. Instead, as years go by, their growth will greatly continue, and a hundred years from now the point of view of our children’s children will probably be to the shipping lines of to-day what ours is to the lines of a hundred years ago.