UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT Geneva Review of maritime transport, 1970 (Review of current and long-term aspects of maritime transport) Report by the secretariat of UNCTAD UNITED NATIONS New York, 1971of ‘United Nations documents are composed of capital letters combined fon of such a symbol indicates a reference to. a United Nations ‘with figures. Mention document. UNITED NATIONS PUBLICATION ‘Sales number NLD.® Price: $U.S.1.50 (or equivalent in other eurrencies)Paragraphs Page EXPLANATORY NOTES nm mae Hw RK GR Be ae OR AS v ‘AppREVIATIONS 5 thew east mont woe @ wen & bees vi INO 6 kG a Ra Ha a Re we BN ER Se eam ea ot Chapier L. The volume of international seaborne trade... . . See BB TL. The development of the world merchant fect oe ee ee eee es BLOT (@) Composition, flag and age distribution... . . f G59 455 URE ta ey I (6) Growth of individual feets dea SB 374 1 (c) Shipbuilding... S itiudcet es es Meee (@) Tonnage on order ld FER eK RG eS ABS TB TIL, Acquisition of new and second-hand ships by developing countries... ee 2-64 14 IV. The productivity of shipping space 3 aa 5 GE wa Saw Ge oles a ONS HT Y. Trends in shipbuilding. corm Kova KRU Some Gone Bese + 76-103 20 (@) Oiltankers. oe we ewe a ee Kn ee TMS 20 (®) Ligueficd-gas carriers). pes gia eta SMT OE (©) Combined carriers baw cea een ae SMR BL (2) Ore and bulk carriers Pee ee eee. S95 22 © Containers vessels lt 9698 22 (F) Nuclear-propelled merchant vessels Mees WEG ee Ee 9 22 (Q) The relationship between vessel size and costs 2 222222 vooo3 23 VE Freight markets Soe rr be + 104120 24 (©) General discasiion. iis wae eos aoe PE Sa Kae ww wo + 1OkI0 24 () Freight rate indices... | 5 Si ise Wat, wk un Beton eee. MIT 25 (© The level of freight rates, layiogup and scrapping...) 020222. 2 ans20 27 VII. Other general trends. $ ae j ++ 121-144 30 (@) Unit load systems. : eee eee ee 12132 30 @® Air transport PhS bili.) aia 31 BrBuiocRaPny a 4 ANNEXES I. Classification of countries and territories... 2... sien une Se HEE 36 TE, Tables (sce list of tables piv)... 4. 4... con sies iit wom HER. - 38 LIST OF GRAPHS Graph 1. Ton/miles of cargo carried by one dwt, tankers and bulk carriers, 1960-1969... 18 2, The course of freight rates, laying-up and scrapping, 1964-1970: dry cargo vessels... . - 28 3. The course of freight rates, laying-up and scrapping, 1964-1970, oil tankers 29 iiiLIST OF TABLES In the text Table Page 1. Development of world international seaborne trade, 1955-1969 (goods loaded). 3 2. International seabome trade, 1959, 1967, 1968 and 1969: shares of groups of countri B: goods unloaded. WE b tle's Compe ts 4 3. Growth of international seborne trade, 1959-1969 casi by types of cargo (159.1968 and groups of countries 6 4. World shipping tonaage, 1955-1970... « eiieseon giece HE 5. Distribution of world tonnage (gr) by fag of regisration, 1955, 1965, 1969 and 1970... ss. 8 6. Share of world tonnage (grt) by type of vessel asat July 190... 2... eee eee 9 7. Age distribution of the world merchant flzet as at 1 July 1970 ele wliees see 10 8. Tho nine largest merchant fleets in dwt, 1965, 1969 and 1970 . DS yon ONS 9. Shipbuilding: completions by country of bulld or groups of countries: 1960, 1965, 1958 and 1969 and by type fof vessel: 1969. ‘ So ec Pa CE aI MIL) Ss 2 10. World tonnage (@vt) on order as at 31 October 1970s stele B Il. World ocean-going merchant fleets as at 31 December 1968 and 1969;net additions during 1969 (seagoing. steam and motor-vestels of 1,000 grt and over) eo a 12. Changes in the ocean-going merchant foots of developing countries during 1968: scqusion of new and second-hand ships per type of vessel ard country of build or previous flag SN ew oN 13, Bulk carriers: ton/mites of bulk commodities carried by dvt, 1960-1969... .. 0.0.50... 17 14. Annual rates of increase of ton/miles of bulk cargoes carried and of bulk cartier tonnage... . 17 15. Oil tankers: ton/miles of oil carried per dot, 1960-190... ... fie cle ae 16. Annual rates of increase of ton/miles of ell cargo carried and of active oll tanker tonnage |... - 19 17. Freight rate indices 1955-1970... . . SE ee oe ee 18, Freight rate indices, 1968-1970, monthly or quarterly anesments |)... sso. vee e ly 19. Air transport: freight and revenue data (scheduled traffic) 1960-1969 Gan eg oe In Annex IL I. World seaborne trade according to geographical areas, 1939, 1967 and 1968... 22... 8 TL. Beitition of work sate Uy Tae of atti, ee tee tence ray is IIL. Distribution of world fleet by geographical areas, as at July 1970 RS ee WV. Addons to and met charg inthe merhan thet of deveoring coun during 19 Be ee % Y. Selected maximum and minimum tramp rates, 1969 and 1970 Uae egret: iv. EXPLANATORY NOTES References to “tons” indicate long tons, unless otherwise specified. A dash (—) indicates thet the amount is nil, or less than half the unit used. ‘Two dots (..) indicate that data are not available, ot are not separately reported. Use of @ hyphen between years, €.g,, 1965-1966, indicates the full period involved, including the beginning and end years. ‘An oblique stroke (/) between years, ¢.g., 1965/66, indicates a seeson, crop year or financial year. Details and percentages in tables do not necessarily add up to totals, because of roundiag. Reference to dollars ($) indicates US dollars, unless otherwise stated. The description and classification of countries and territories in this document and the arrangement of material, should not be considered as implying any judgement by the Secretariat of the United Nations regarding the legel status of any country or territory or in respect of the delineation ofits boundaries, or regarding its economic system or degree of development. Inclusion of a particular country or territory in any economic or geographical grouping (or its exclusion) has been dictated by economic and statistical considerations.INTRODUCTION 1. This review has been prepared by the secretariat of UNCTAD in accordance with item VI of the programme of work of the Committee on Shipping. 2. The purpose of this review is to present statistical evidence of developments in international maritime transport and to comment on these developments, with special reference to factors affecting the trade and shipping of developing countries. ‘See Oficial Records of the Trade ond Deveiopmest Board, Ninth Sestion, Supplement No. 3. (TO /B/240), annex I.Chapter 1 THE VOLUME OF INTERNATIONAL SEABORNE TRADE 3, The volume of international seaborne trade amounted ‘0 2,240 million metric tons (total goods loaded) in 1969 ‘and thus increased by 9 per cent in comparison with 1968, ‘This increase may be compared with the increases regis ‘ered during the five previous years, which amounted res- ppectively to 12, 9, 8, 6 and 10 per cent. It shows a slight decline in comparison with the increase of 10 per cent in 1968, which was the highest observed since 1965, Ne- vertheless, world international seaborne trade still more than doubled betvieen 1960 and 1969. These figures are extracted from table I. which gives particulars of the development of world ‘international seaborne trade in terms of absolute quantities and annual percentage in- creases for the period 1955-1969. 4. In 1969, tanker cargo (loadings) amounted to 1,220 nillion metric tons, while dry cargo (loadings) was 1,020 nillion metric tons; these levels represent inereases reepec- tively of & and 10 per cont over 1968. 5. A number of observations may be made from a ‘comparison of the developments in aggregate tanker cargo and dry cargo shown in table 1. First, in 1955, the volume of dry cargo was considerably higher than that of tanker ‘cargo, but this situation was reversed in 1961, and since ‘that year tanker cargo kas continued to be in excess of dry cargo and bas also increased at a faster rate. Second, the increase in tanker cargo has followed a much steadier upward trend than is the case for dry cargo, particularly ‘with respect to the period startingin 1961. Indeed, between 1961 and 1967, the yearly increases of tanker cargo were between 60 and £0 million metric tons, although since 1967 two yearly increases have been registered respectively of 110 and 90 million metric tons. With respect to dry cargo, on the other hand, heavier Suctuations are observed in the annual increases, ranging between 20 and 80 million metric tons between 196] and 1967 and amounting, to 90 million metric tons both in 1968 and 1969, The increase in dry cargo during 1968, for instance, was 44 ‘times as high as that during the previous year (00 and 20, rillion metric tons respectively). Third, the average yearly increments have, for both types of cargo, also been increasing during the last fifteen-year period. For tanker ‘cargo, the average yearly increase amounted to approxi- ‘ately 38 million metric tons in the late 1950s, but rose to about 73 million metric tons between 1961 and 1967 andto ‘about 100 million metric tons after 1967; a similar develop- ‘ment may be noted for dry cargo. Tame! Development of mor international seaborne trade,* 1955-1969 (goods leaded) Taster cone = Foil fal goede) Yer Milton Freoteae ee! mode ition Peete mei detec metre’ ineselgctae Tou ceerprvoa ct Mise Pare a "Sr Spree ‘mari’ nnaidecrense me noalierare "wrt eetpreont Sear "one prSear Wc 9 450 13 = ‘800 B 1956000000, 390 1 460 9 5 880 0 1957. 20 8 510 4 930 5 1538. 40 3 480 -6 920 = 1339. 400 3 20 2 o 20 3 1360. 30 rs 540 10 228 i" 1080 1 861. 500 7 570 6 239 3 1190 6 196200. 680 2 00 5 246 3 125 > 1963. 70 8 640 7 269 5 1350 ‘ 1864 760 n 0 13 508 14 1810 2 1965. 870 0 70 327 ‘ 1640 ° 1966. 980 9 20 6 340 ‘ 17 5 1967. 1030 7 350 4 352 4 187 6 1968, 1130 un 330 9 384 9 2060 0 19698... 1220 8 1020 10 49 9 2240 ’ ‘Scares; For pnier agp, lolly rao wed ll ponds Uated Ratna, Marth Buotn of Str iy te forename: Foal’ afte "Go tin Toads of Wore Bal Carers 195) (Ola, 1570, on RSS SSE = Bagg Soma glo, te and ai wt pata Bas ° Prorsona‘Tamu? 1959, 19675 1968 und 1969: sbares of groups of counries® & (Percentages of world total) - 198 be 88 169 Group of counties “Cradle Fa> Br Grae Perm ry Foire Fate Dry Fash Ptah i a Ton prs aration procts sods Tim products pos grads A. Goons toxpm> Millon merric tous World total ....csse++e 3149 1687 498.5 9695 7552 2635 882 1,878 855.8 2785 9100 2.0643 2,2483 Pereentage share of each ‘calegory of goods in the totale. = vi 26) (169) GOA) (190.0) a4) (LAT) SS) 1000) 4.5) (134) 45.0) (1000) Percenteges World total ....4...++++108.0 1000 100.9 100.9 100.0 1000 1000 1000 100.0 1000 190.9 10001000 Developed markel-econ0- ‘ey countries (excluding Southern Europe) 03 220 S55 MB 07 2954S 286 US 236 S57 8ST southem Europes, — 0233 A] R282 RD 13 Socialist countties of ‘EwternEuopeindAsia 2.7 66 62 $1 44 92 98 73 40 It 89 70 a Developlagcountics,tctal 97.0 TLL 350 GI4 949 GAT 347 S.S GAO HAZE OKT of which: MAMI LO 04 94 34 8 26 20 dA 100150 in Asia ..sccccssscs, @.S 233 93 288 SBM Bs 309 «SS 284 RR TLS. in Latin Americs and Caribbean. ~ 38a 48S ISS 269 Ms ood S992 3ST fn Oceania eos — os os OT 1B. Goons UNLDADED Million metre toms World total .. 3169 1515 4984 9068 756.0 2944 8625 18925 819.6 2463 8927 203.6 22246 Percentage share of each category of goods inthe Bia nae G2) (S7) ($15) (O40) 40H) G26) (465) (100.9 42.2) (21) (458) (100.0) Percentages World total -.-:..-.:+, 100.0 100.0 100.0 1000 100.0 100.0 100.0 100.0 100.9 1020 1000 1000 100.0 Developed market-econo- my countries (excluding Southern Europe) RS 61 46 23 M4 BS 4 $2 119 BS 3 TO 759 33 Southern Europe... 24 20 30 26 34 18 36 33 38 19 33 34 Socialist countries of EatemEuropeandAsin — 0 39° 22 06 13 $1 28 03 13 300 26 BT Developingcouniris,totel 251 32.9 16S 229 186 4 119 16 178 20174 1K IB of ehich In Afficg 1s 93 48 442 T 3 aay 3S MASA vcscs 47 2 88 0; SB 8G 87 61 98 93 79 ‘m Latin America and Garibtean sss 189 0-47 GH TOS 6342 KBAR 68 inocala sl 08022 OB OD OF OR “Sore; Ualed Nacorsgigated tay the world tt Ge not orrapend > Dreaidnwn by ips cago for 1969 not ot vale ied be toreneed ere ANE * Derved trom le In aes 1, 180 Aes nated om dt a Uni Tse not ato ble 1 Grune Lake, and S. Larose ine Gn dey cto) NaSfouhitletn of Seals, Nove ay i, gourd 2 toe ar ot in HS8°3 cen ete to TOO tad Meni lee of ao Nests 91 ed Deny SPrttlog stom stot 19 and 190. {Se ans forthe comronion of the seus.6. The share of oil in total cargo loadings rose from 44 percent in 1985 to 50 percent in 1960 and to Sd per cent in 1969. 7. The rate of growth of the main bulk commodities amounted to 9 per cent, which is somewhat lower than that for aggregate dry cargo loadings. 8. The developments discussed aboye have important repercussions op, and are parallel with, developments in the size and compesition of the world merchant fet. The great expansion of the world tanker fleet and of the ton- nage on order at the present time should be noted in ‘this connexion; this is further discussed in chapter IT below. 9. The percentage shares of the various groups of countries? in international seaborne trade (loadings and unloadings)* are shown in table 2 in the present chapter; world totals are also indicated in absolute quantities. The absolute figures from which this table was derived are presented in table I in annex II to the present Reviews the latter table also shows a more detailed breakdown of rezions than table 2in accordance with tho classification of countries and territories shown in annex I. Although ‘comments in the text relate exclusively to table 2, it is useful to bear in mind that considerable changes in percentage shares may relate to only small volumes of trade in absolute terms. 10. The aggregate share of developing countries in seaborne loadings (table 2, A) rose from 61.4 per cent in 1959 to 63.2 per cent in 1968 and 64.7 per cent in 1969. 11. With respect to the various categories of goods loaded in 1968 as compared to 1967, the share of develop- ing countries in crude petroleum shipments incteased from 949 per cent to 95.5 per cent. A different trend is to be noticed for petroleum products; the share of developing countries in the shipments of such products decreased from 64.7 per cent in 1961 to 64.0 per cent in 1968. The share of developing countries in dry cargo loadings amounted to 33.2per cent in 1968, which may be compared with 33.4 per cent in 1967, 12, In comparison with 1959, on the other hand, the relative shares of developing countries decreased in 1968 with respect to each category of goods loaded. * 13. Some shifts may also be observed botween 4959 and 1968 in the relative importance of the various developing regions with respect to the various categories of goods loaded. Thus, the developing countries in Africa increased their share in crude petroleum shipments from 1.0 per cent in 1959 to 21.1 in 1968; very few African count See gnaen I forthe composition of the groups of counts referred to. 3 Data are presented in table? for the years 1959, 1967, 1968 and 1969; however, te available data for 1969 are not broken down by ‘ype of cargo. Hence, comments in the text regarding different types ‘of cargo are limited fo the period 1959-1968. * ‘he increase in the percentage share with respect to all goods foadec—as observed in pare, 10—is explained by the shift in the talative significance of cash category of goods ia the tetal which ‘cccurred between 1959 and 1968; the percentage tharee of each ‘ategory of gcods in the annual world totals are shown hecween brackets in ttle 2, however, export crude petroleum in considerable volumes, and loadings in only four developing countries (Algeria, Libya, Tunisia and Nigeria) accounted in 1968 for over 95 per cont of total loadings of crude petroleum from developing countries in Africa. A decline is noted in the share in crude petroleum loadings of developing countries in Asia which in 1968 amounted to 58.5 per cent as sompared to the 1959 level of 60.8 per cent. Although in absolute terms, loadings of crude petroleum increased from 111.0 million tons to 136.1 million tons, the share of ‘developing countries in Latin America and the Caribbean also declined. from 35.1 per cent in 1959 to 15.9 per ceat in 1968. 14, The relative share of the developing countries in the Joadings of petroleum products fell from 71.1 per ceat in 1959 to 640 per cent in 1968, This reflects the further ‘apansion of refining capacity in and the exports of petroleum products by developed market economy coun- ‘ries, by countries in Southern Europe and by socialist countries in Eastern Europe and Asia, which increased their respective shares in the loadings of petroleum products. The share of the developing countries in Africa in dry cargo loadings increased from 9.4 per cent in 1959 to 10.0 per cent in 1968 but the shares of developing countries in other regions declined or remained unchanged. 15, With respect to goods unloaded, table 2B, illus- trates a rather differeat development. The share of devel- ‘oping countries in the world total increased slightly from 180 per cent in 1968 to 18.1 per cont in 19695 this is, however, still less than their share of 22.9 per cent in 1959, This decrease in their relative share since 1959 is largely caused by the large fall in their share of unloadings of rude petroleum which fell from 25.1 per cent in 1959 to 17.8 per cent in 1968, and of unloadings of petroleum products which fell from 32.9 per cent in 1959 to 21.0 per cent in 1968, The percentage share in unloadings of dry cargo, on the other hand, decreased much less from 18.5 er cent in 1959 t0 17.4 per cent in 1968, 16. With respect to crude petroleum, the decrease in the relative shares of developing countries as a whole results from the decline in the relative share of developing countries in Latin America and the Caribbean from 18.9 per cent in 1959 to 9.6 per cent in 1968; developing countries in other regions (except in Oceania) increased their percentage share. 17. ‘The fallin the relative share of developing countries ‘in unloadings of petroleum products between 1959 and 1968 is reflected in a decrease in the relative shares of all regions except Oceania; developing countries in the latter region increased their share ftom 0.3 per cent in 1959 to 0.7 per cent in 1968. 18. The developed market-economy countries increased their share in total seaborne ualoadings from 72.3>per cent in 1959 to 75.9 per cent in 1969. The share of countries in Southern Europe increased from 2.6 per cent in 1959 to 43.3 per cent in 1969 while the share of socialist countries of Eastern Europe and Asia also increased from 22 per cent in 1959 to 2.7 per cent in 1968,19, Table 3 shows the percentage changes in loadings and unloadings of various groups of countries in the form of indices both with 1959 and 1965 as hase years. The table illustrates that world seaborne loadings and unloadings have more than doubled since 1959, Goods loaded during 1969 in developing countries in Africa increased to almost seven times their 1959 yolume, largely as a result of the considerable increase in exports of crude petroleum and petroleum products. Exports of petroleum products from Southern Europe also increased tremendously and were in 1968 almost eight times as large as in 1955, Taps 3 ‘Growth of international seaborne trade,* 1955-1969 classified by types of cargo (1959-1968) and groups of countries) © (Indices: 19:9 = 100)1965 = 100)4 A= Goode oad 1568, B= Good loaded 1968 Grats Goes Gow of eownnes ales snide ‘Grd Feil Dry allude Paria Do am ‘aust loa uri “rosied, ewrge —gooes —peclum ‘podcts cago gents Alas al ts World total. 27 169 1902s assets Bes a 6 ss eae se ase Developed marcet-economy countries (exuding Southern Europe).......410 181 19191 anges. . 8 66 tata aa Soathers Europe ... — 1 430 sas) wz wo 08 Tt Socialist countries of Eastern Europe tnd oie veo dta 259272 ae 450220260503 wt eae sso) as Developing countries, total..-..4....267 1582180219 HSaKSCTSSC Sta see 6 ean ata of whic: i afitea « 67 0355) aks gat 9s ast N3 "100 100 40s ages ia i i980 2350125 Osa we ass as aaah tea fn Latin America and Caribbean... 123 138 16714038 1850s Hoe 10006 toe stat in Oceania. oe = = 186 16 — 400 ss 9g 3s ms ask a5 ange So abla 5 Git pevoinum lange fordoped oan Paie (aclaine 15ers ott so a erg catalina eimai BU Tied onal tem onan ta LeU sa ete tio oa ant ep Sg EES SE mete om aee ATAS Sai Souham Farepay mound to Of nice moa aa eS aan ‘eis wos in B * Loading of petoleum produ in sour i Southern 4904 sion vis tus ts 909 and fo 89 millon ace oe Grade paroles loalags ta, cevetping coun te. Afra anual 2 millon sae tas la 1S and to HDi tte oes be amosotel(Chapter IL ‘THE DEVELOPMENT OF THE WORLD MERCHANT FLEET (2) Composition, flag and age distribution 20. Table 4 shows the development of the world active seagoing merchant fleet between 1955 and 1970, a period during which an expansion to more than 214 times the 1955 tonnage (grt) took place. An even larger increase ‘occurred in tanker tonnage which more than tripled in size dluring the period. The percentage increase between 1960° and 1970 were as follows et don Tankers wee <0 131 Other ships’ |. : ie 8 All ships. | 94 102 ‘The greatar increase in dwt in comparison with grt of the ‘tanker fleet reflects the increased dwt/grt ratio resulting from the introduction of very larg> tankers; this ratio ‘has a direct impact on the productivity of shipping space.” Tam 4 ‘World shippig tomags®? 1955-1970 (26a year figures) e Testers iter shin? Taal < “Millon Miliew ion Mion Sion tow ra ‘ier oder ‘w ‘ae 4 30 a7 a eS ees iS ao = pe MOS aS mS 1003 = 303 ae Cr os as ne 948 a4 1577 a1 6a 753 193 1644 47 @0 D6 142 9 65 Rd 87 1301 18h4 9 712 819 1318 1909 S486 S21 1468 2045 8 944 92 1590 BL G9 1025 1072 mt a9 3 16 SO 18402621 Tul 40 a0 2020 2883 818 1480 tat 27961 (Commerce, Marlene Acmisstin 5 Geto tenanges inion tod aa tas BRETT mete Re 21, Table 5 indicates the absolute and relative shares of various groups of countries according to flags of regis- tration during 1955, 1965, 1969 and 197 as well as the * First year for which dw figures are available. * Percentage increases in dt are based on the figures shown in table 4, footnote b. ae ieial Tae 93S Uae wappomenany ares eae sad the nat kes Aas os Une nt sd Ce sate oer : Tigres fwtup to sod nexdoe cca te Grout Lake fe of e Une Stes an Cana Ge be 3, nes by Wie Une arebmrdon dats rom ii of Sup poe a testes maior oe reel may ane othefabwng veil Bi WHI, BOE SA Des Band BH inerease in tonnage and the share of each group of coun- tries in world total increase between 1965 and 1970 and betwoen 1969 and 1970. 7 “The productivity of shipping space will he further dicevsted in chapter IV. 7Tate § Disirtbution of world toanage (gr by fag of registration,” 1985, 1985, 1969 and 1970 (Bid. year figures) ‘Share: of ed ase There romeee Tonnage (nos) Serene — = lags crear, apn Feowenes® Sarin = i _Shaee eee 1915 16S 1089 10700 Bass e684 ak voided BE millon sel ‘reuse. (1885=100) “et” “mena occas) (weet) World total ........ $27 1488 2920 2179 1000 1000 1090 1900 711 000=SSSS]«t0 Developed market- economy countries (excuding Souther 6 USS 162 742 618 SRG S70 338 ATA 137 $7 3a 20 M6 9 101 150 19 179 1690 3B a3 oma 7 156 1867 49 80 727 85 7D. Bt 86 109 181 15 42 78 90 89 BB 19 4 as Ma 153 166 66 78168 16 7s 13 az 6 11 12 03 04 06 08 06 09 21 a 06 63 89 96 22 43 44 44 330 or 4g 460520 57 41 3a 26 26 od tee os 32 ‘Seare : Compiled Gm Linite Rese of Siping Sialiaeal Tatler aaa suppeowoiy aa + Butatng,rapetely in 95%, 196%, 1968 and 1970, () Unies Sties sere feet of abou 18.4 104,56 an 62 millon gt, ip Unies States Groat Late tet 22 L8 und 7 aioe gre (i) Caandan Grant Union teat F012 18 aed 13 lon (ach Tm i otis dy of ie a Fy Oe 22, Between 1955 and 1970, the percentage distribution of world toanage (grt) has changed considerably. The share of the developed market-economy countries de- ereased from 74.2 per cent in 1955 to $7.0 per cent in 1970, » by 17.2 per cent, This appears to be partly the result of a shifting of tonnage from developed market-economy ‘countries t0 the flags of Liberia and Panama. The relative share of these two countries together increased, indeed, during the same period from 10.1 to 17.9 per cent and it is known that a large part of the fleets regisiered in these ‘wo countries is owned by residents of developed market- economy countries. Oa the other hand, during the seme period, the relative share of countries in Southern Europe Increased from 4.9 to 8.6 per cent, the relative share of the socialist countries of Eastern Europe and Asie increased from 4.2 to 8.9 per cent while the relative share of the developing countries increased from 6.5 to 7.6 ner cent. Within the last mentioned group, however, it is to be noted that the relative share of developing countries in Latin America and the Caribbean decreased from 4,1 to 2.6 per eent. 23. Between 1969 and 197) (mid-year figures), world tonnage increased by 159 million grt, but this increase vas shared very unevenly among various group of coun- tries. As shown in table § (last column), 36.1 per gent of this increase was registered by developed market-economy ‘countries, 27.2 per cent by Liberia an¢ Panama combined, 19.6 per cent by Southern European countries, 8.9 per ‘cont by socialist countries of Eastern Europe and Asis 8 en na une 48 aes o seetod or cte k w 44,6, 11, 05, 4.3 and 23. - eee to up deme + ee te Eanes cee ol erg epee a! t Excluding Liberia and Paname. e and 8.2 per cent by developing countries as a whole, Of the laiter group, countries in Asia recorded the largest share, with 4.4 per cent, countries in Latin America and the Caribbean 3.2 per cent, and countries in Africa 0.6 ‘pet cent of the total world increase. 24, When the percentage shares in the world total increase in tonnage for Inst year are compared with those relating to the last five-year period, it is noticed that the combined share of the developed market-economy coun- ities together with Liberia and Panama has decreased from 70.9 per cent for the period 1965-1970 to 63.3 per ent for 1969-1970. Countries in Southern Europe, on the ‘other hand, exactly doubled their share in the total world increase of last year as compared with the increase for the last five-year period. 25. Contrary to the long-term trend noted in paragraph 22, socielist countries of Eastern Europe and Asia regis- tered a decline in their relative share of total world increase in tonnage during last year as compared to the last five-year period (89 as against 12.1 per ceat). 26. Developing countries as a whole showed an increase ‘of 1.0 per cent in their relative share of total world increase in tonnage during last year as compared to the period 1965-1970 (8.2 as against 7.2 per cent) which was the net result of such countries ia Latin America and the Caribbean registering an increase of 1.6 per cent, while those in Africa and Asia each showed a decrease’ of 0.3 er cent,Tam 6 Share of world tonnage (gr) hy typeof veel as at I July 1970° ‘Al sips? Tankers® Ore and blk Genre Conner Otey. corer cept ties Sit 7 ‘Share of total ronnege, 1969 and 1970 (percentage) ‘Worl total 1970... cose 1000 394 02302 33 Be. 7 100.0 83 as Tonnage increase, Index 1970 (1965% 100) World total sss |e ie ‘Shares of groups of counsrer tx total tonnage in exch elas, 1970 (percentage) 100 10001000 100.0 1000-1000 S00 «513s mg 36a 76 10 36 a6 «5 3s 78 BS coh ram 2 any AR IE 231 Ww 43 ged ane 39 er Ogee Boe o7 4400«20 ah ee 27 Bore eet a aaa 24 ved forrest of Sips ail Fes, 7, ad wpa oroaton va og Gro! Lak ers af th nin Sea of Aris ad of Canlaon gr cowie of wach siren Bone eee crenee sea cae rine cent Se Seen ence ae sesnaiod at 2 lon grt millon pt aakee 9 on Pernt conten rela to inns sone ol wamge of 3307.30 pt nt eee {re cern somtlnd won oft at een ‘Pisutotiice now 8 dr Sea of 69 persone 27. ‘The shates in world tonnage, by type of vessel, of various groups of countries as at 1 July 1970, are shown in table 6 above. 28. The table illustrates the increase in world tonnage of oil tankers which rose by 58 per cent between 1965 and 1970; ore and bulk casriers (including ore/bulk/oil types)* increased by 169 per cent over the sume period and other type ships by 16 per cent. In absolute terms, the increase in tanker tonnage amounted to 30.6 million grt, in ore and bulk carrier tonnage to 27.6 million grt and in other type ships to 11.9 million grt. In comparson with 1969, both tanker and ore and bulk carrier tonnage increased 2s a proportion of aggregate world tonnage of all ships, the first category from 38.1 to 39.4 per cent and the second from 19.3 to 20.1 per cent. The tonnage registered under the fags of the developed market-economy countries, together with that registered in Liberia and Panama, The Fapid increase in combined carriers dusing recent years is, Sea abe midyear, peels of 00 and ove Beh racer ut telts Reaye Gin ieceaad + Bain mage ine tp Gaya tte woe eed Oy oor = Se eeiag stata stimu of te conyenios for ro lny.an saan erase! 8 "Frontenac 71, With respect to the active tanker feet, ton/miles of that there has been a considerable decrease in unproductive cil carried per dwt increased from 68,800 in 1960 to tonnage during this period, As there was practically no 94,500 in 1960; these figures were respectively 63,000, and taid-up tanker tonnage during 1969, the figure for ton/ ‘94/400 for the total tanker feet. A comparison of thedata miles of oil carried in relation to the active fest and in for the total leet and for the active fet indicates clearly relation to the total fleet have become almoxt identical Guam! ‘Tow/miles of eargo carved by one dv, tankers and bulk caries, 1960-1969 “enim of erge reg ang dt ‘ises8) 160 150 140) 430 420 3 L L L L L L 1 Qiao teers yees 196 1967 1968 ares abo 9a 16 1872. These developments are also reflected in graph 1, which shows more clearly the relationship between the ton/miles of cargo carried by one dwt of bulk carrier and by one dwt of tanker tonnage (active and total fleets); for this graph, the original deta have been converted to an index with base year 1960 = 100, Tams 16 Annual rites of increase" of tn/mbies of ol cargo carried ad of active off tanker tonnage (Percentages) al fronts cried) esclang ss ita) 13 8 2 1 10 ‘ 10 8 9 2 9 10 28 9 15 10 B 1B area te ‘Tosco i cach yur 46a percentage ofthe previous your's Sse 73. It should be observed that the figures of ton/miles per dwt of cargo carried by bulk carriers and tankers, respectively, as shown in tebles 13 and 15, are not strictly comparable, as voyages in ballast are included in the tanker fleet mileages. Tanker ficet ton/mileage figures in “laden” condition would be about one half of the figures shown and would therefore also reduce to about one half the ton/mileags figures per dwt. The indices shown in table 15 would not, however, be affected by this factor, as the proportion of ballast voyages is unlikely to have changed significantly over the period, In the next issue of the Review, a different approach will be used, based on a different set of data to indicate trends in the productivity of shipping space; for this reason this issue has not been revised in a maaner which would indicate the productivity of tanker tonnage based on ton/miles figures minus ballast voyages. 74. As the trend towards the use of larger and faster ships is still continuing®? it may be expected that the umber of ton|miles carried per deadweight ton, both in the bulk cartier and tanker ficets, will continue to rise at Jeast for some years in the future, In particular, the addi- toa to the bulk carrier fleet of the very large crude carriers and ore/bulk/oil ships now on otder*® should have direct impact on productivity levels. The same may be said about the forthcoming addition of the considerable number of oil tankers in the 200.000 dwt and above category Which are now on order or under construction, * 75. The higher productivity of bulk cartiers and tankers also reficts the ratios of dwt to grt, as a greaier dit/grt ratio indicates that a larger proportion of vessel space can be effectively utilized for the transport of cargo. With respect to tanker tonnage, for instance, the dwt/grt ratio fof the world tanker fleet as a whole increased from 1.54 im 1960 to 1.72in 1970,°* 3 See chapter V. 2 See chaper I Bi. % Seetable 4. 19Chapter V ‘TRENDS IN SHIPBUILDING 76. Some mutually reinforcing trends have been ob- served during the post-war period ard, more particularly, during the last decado in the growth in international trade ‘and in developments in ocean shipping. On the one hand, the rapid increase in international oceanborne trade has ‘boosted demand for shipping services and Jed to a rapid ‘expansion of the world merchant flect.°* As a result, shipbuilding order books have become full for two years of more ahead, while the prices of ships have risen very sharply. At the same time, the growing diversity of cargoes to be carried and the new demands which confronted the carriers have led to the building of larger, faster and more ‘pecialized?” ships as well as to improvements in handling techniques. The improved technology in ocean transport hhas diminished the cost per ton/mile of carriage, a develop- ‘ment which has been particularly noticed with respect to ool and bulk cargo movements, whereas freight rates have remained at a high level during the last year due to buoyant demand conditions. Oa the other hand, the decrease in costs of and improvements in the ocean shipping services provided have considerably diminished the importance of distance in the organization of world production and have alto made ocean transport services available for a larger number of products, 71. Developments in shipbuilding, although mainly responding to the needs of the trades served, may thus by themselves have an important impact on the types and quantities of goods carried as well as on the direction of the trade flows. Furthermore, the preveiling trends in the size and other Characteristics of new ships being built are ‘of special interest to all trading nations, since the develop- ment of their external trade may to.a large extent depend on their ability to accommodate the newly built merchant vvescels. Since most shipbuilding takes place in developed tmarket-economy countries, itis of the utmost importance for the developing countries to be informed and to follow closely the developments in the world shipbuilding industry. 78. Some developments in the world shipbuilding industry, particularly as regards new types of servives available and the general trend to increase the size of ships, are discussed below, according to principal types of vessels ‘See chapters 1 and If above, ‘Such 6 comtaiter ships, liquefied gas carriers, etc, As bighly specialized vesels are more vulnerable tO wiemployiieat When de Inuind for the specialized service sleckens, the opposite tendency to build more versatile carriers (e.g. ore/bulkjoileares, bulkicontainet carrer, etc.) also manifest ands becoming stronger withthe tread towards the building of larger vessels, since the costs of unused ‘apical equipment are rising and owners are peying more attention {o'seeuring maximum employment forthe vesses. (a) Oil tankers** 79, Botween 1969 and 1970 (mid-year figures) the exist ing world tanker feet increased by fifty-eight units of which fifty-six fall in the size group of 200,000 dwt and over, Within this size group, fifty-three ships fell in the 200,000/249,999 category while one vestel had a capacity, of over 360,000 dort 80, With respect to tonnage on order as at 30 June 1970, out of a total of 409 tankers, 11 fell in the 200,000/249,999 dwt category, ninety-five in the 250,000/299,999 dwt group ‘and nine were of over 300,000 dwt. More than half (215 ‘out of 409) of the total aumber of tankers on order thus fell in the over 200,000 dwt group: it is noteworthy, however, that out of the total of 63,022,000 dwt of tonnage on order, $2,607,700 dwt or 83.4 per cent were accounted for by the tankers in this group. 81, The reletive changes within the over 200,000 dwt group of vessels on order clearly illustrate that the trend towards larger tankers is stil continuing, In comparison ‘with the previous year, the number of tankers ordered in ‘the 200,000)249,999 divt group decreased by twenty, but thirty-nine more tankers were ordered in the 250,000) 299,999 dwt group and four more in the over 300,000 dut group. A super tanker of 477,000 divt has been ordered from a Japanese shipyard? and is to be delivered in 1973; this will be the largest tanker afloat at the time of delivery.” 82. It has been suggested that the development of port facilites is not heeping pace with the servicing needs of the larger tankers, By the end of 1970, for instance, there were still only ten or twelve European ports capable ‘of accommodating fully laden vessels in the 200,000 dwt class, while stil fewer ports can hance the larger sizes? of wich a considerable number are now on order. In this 238 This disousion is based mainly on date from Jobs I, Jacobs and Company Lid. World Taner Feet Relew, 31s December 1969, (Condor, Lestadon Press Lté).and World Tasker Fleet Rete, 31k Decenber 1910. 39 See Zosen (Tokyo), November 1970 © The same shipyard bas also anaounoed that it has asked Government permission to Buld a second super tanker, Dut details about the exatt tonnage were not spedified. (See Journal dele marine Inarchands ef de la navigation adrense (Pars, 19 November 1970, perry “1 Bantry Bay (Ireland) san accommodate fully aden tankers of ‘over 300,000 dwt and plans were angounced for an oUter port newt Hambourg for ships of up to 350,000 dwt, Le Havre an accommo- date verses of 250,000 dwt ard plans for aa edcitional terth 10 handle 300,000 dw. vessels. (Petroleum Press Service (Loudon, Februayy 1979), 20connexion, it appears that a certain stability has been reached in respect of the size of the next generation of tankers, which will mainly be in the 200/250 thousand dwt category. The use of much larger vessels at the present time would probably lead to an increase in total costs ‘outweighing the decrease which could be realized from the economies of soele of larger vessels, in view of the associa~ ted increases in terminal costs which would result from the lack of appropriate handling facilities. (b) Liquefied-gas carriers 83. As at 1 July 1970, the world fleet included 288 liquefied-gas carriers with a combined tonnage of 1,342,605 art,*? an average of 4,686 grt per vessel. Although precise figures for previous years are not avsilabie, it is known that this fleet has expanded considerably during the last five years. Among these liquefied gas carriers, there are at present only eleven highly specialized methane tankers especially built for carrying liquefied natural gas;,they have a combined capacity of 392,423 cubic metres,*? an average of 35,675 cubic metres per vessel, 84, Liquefied natural ges is becoming increasingly important as an additional source to meet the rapidly expanding energy requirements of the industrialized wor'd. In 1950, natural gas accounted for about 10 per cent of ‘world energy consumption, but since then this share has doubled and is expected to reach close to 25 per cent in 1975.** Furthermore, the main consumption centres (the United States of America, Western Europe and Japan) lack the reserves required to meet the rapidly expanding demand*® and it may therefore be expected that world trade in natural ges wil increase very rapidly during the next decade.“* Although & large portion of this trade will move overland through pipelines, this mode of transport is not generally feasible as some of the major areas—such as North Affica, the Middle East and Alaska—are seperated from the large consuming centres of the United States, Western Europe and Japan by oceans.*7 It is Bes Lloyd's Register of Shipping Statistical Tables, 1970. +7 See Perroleum Press Sertice (Lonion, June 1970), p. 205, + See Journal dela martse marchande et dete naclgation aérleane (Paris, § Noweesber 1976, p. 2791). 4 In the United State, natural ges consumption is reported to be ‘growing at a rate, at which even assuming ao increaee in the 1968 level of production, proved reserves wil last for only about fourteen years. (See Perroleum Press Serdice (London, Juse 1969, p. 205), ‘The possibilty of discovering new reseives either oa land or offshore should of course te kept in mind, as well as the possIBBity of a ‘switch to other enetgy sources, particalarly nuclear powerplant 45 The transportation of liqué natural gas is at present a apiive industry, the vowels boing tho link between a iquafsction plant at the production site and a deliquefiction plant atthe distribution end, the liquefaction process making its economic transporation fexsible. ‘Arrapid increase in the trade in this product may, however, lead to Independent shipowners acquiring methane tanker tonnage and offering these vessels for chartering on the open market. ‘number of national politically unstable areas, 30 ty of supply camot be suffcienty ensured either that the regel: by the producing or consuming countries. The vulnerability of trunk pipelines as been particularly demonstrated by the dficlies experienced with the Trans Arabian Pipeline (TAP) during recent eats 2 expected, therefore, that the demand for gas tankers will increase rapidly during the next decade. 85, The large methane tankers in service in June 1970 were reported to be operating on the following routes, “* Algeria - United Kingdom; Algeria - France, Alaska - Jepen and Libya -Italy/Spain. The liquefied natural gas carriers under construction or on order in June 1970 are expected to be used on the following routes: Algeria - United States of America, Algeria - France and Brunei Japan“? 86, As at June 1970, there were another fifteen liquefi natural gas carriers on order or under construction with, a total combined capacity of 1,157,600 cubic metres, an. average of 77,173 cubic metres; at least twelve of these were scheduled to be delivered before 1975, It is further- more expected thatas many as seventy liquefied natural gas carriers will be operating by 1980." 81. There bas also been a rapid increase in the average size of liquefied natural gas carriers. The first two of these vessels delivered in 1964had a capacity of 27,400 cubie me- res while allliquefied natural gas carriers at present on order and those to be delivered after 1972 have a capacity of 75,000 cubic metres or more; the largest of these has a. capacity of 120,000 cubic metres. However, it has been reported’? that ships with 200,000 cubic metres capacity are already being studied, °? For purposes of compatison, itis noteworthy that a methane tanker with a capacity of 73,000 cubic meires is roughly equivalent in size to an oil tanker of 100,000 dwt. (©) Combined carriers®® 88. There has been a remarkable increase in combined ‘carrier tonnage during the more recent period, and this, ‘trend has continued during last year. Between 1969 and 1970 (mid-year figures) thirty-four combined carriers were added to the world fleet with a total capacity of 3,338,500 dwt, As at 30 June 1970, the world fleet comprised 204 combined carriers with a total tonnage of 13,933,000 dwt; this amounts to approximately one tenth of present world tanker tonnage. Although the largest part of the combined “Tie discovery of new reserves or a speed-up in production from already proved reserves may rapidly change the grid of preseat world ttade routes. The largest proven reserves are at preseat reported to be in the USSR although half of the total is located in. Westen Siberia and extremely dificult to exploit ia view of geographic and climatic conditions. New techaologlel dicoveries could, however, ‘muke these reserves mich more easier accesible which coal lead 19 4 rapid increase in production and exports from ths reson. +? Petroleum Press Service (London, June 1970), ‘bid, p. 204. Petrcleum Press Serice (London, June 1970), 53 Bales increases in size, other significant technological im- provements have been realized, The frst types of natural gas tankers, builtin 1964, had self-supporting aluminium and nickel stel tanks; the secon generation was bulk with meribrane tanks of thin plating of high quality nickel sie! encased in heavy insolation and Supported by the hull ofthe thip, a construction which allowed ‘a Beter utilization of cubic capacity: the third generation of methar tankers now under construction in Norway have sperical tanks of @ novel design, which are said (0 be superior 10, and safer than, the membrane fekel steel tanks. (Voncezian Shipping News, (Oslo, 18 September 1970.) "> For the souress of ata on combined transport, See foomnose 38.cartier fleet consists of ore/oil carriers, the number of ‘ore bulk/oil carriers in service has risen very rapidly from six vessels in January 1966 to more than ten times this figure in 1970.5* 89, There were 117 combined carriers on order as at 30 Juine 1970 with a combined capacity of 16,702,100 dwt; ‘one year earlier, only eighiy-cight suck vessels were on order. 90. The trend towards increasing sizes of buildings is particularly noticeable in the combined carrier fleet, as the Everage size of vessels rose from 45,158 dwt in 1967 to 68,300 dwt in 1970; the average size of vessels at present fon orer is 142,752 dwt, Following the trend in the tanker market, an increasing number of combined carriers are being ordered in the over 200,000 dwwt catogory. As at 30 June 1969, eight such vessels were on order, whereas one year later the number had tisen io nincicen, the largest being 270,000 dwt, It should be observed, however, that combined carriers on order in the over 200,000 dwt ca= fegory are all orejoi) carriers} the largest ore/bulk/oil carrier on order is 166,700 dwt. 91. Although the capital cost of a combined ore/bulk oil carrier may be about 15 per cent higher than that of a bulk carrier of comparable size, the increase in earnings Which may be obtained as a result of the faxibilty of Such a vessel may raise the profitability of the ship. The flexibility of combined carriers may be seen in two ways First, the vessel may be used for certain periods of time in transporting either bulk cargoes or oil, depending on the freight rate levels in each market. Second, the carriers may beengaged ona more or less contiauous basis in the trans port of both commodities, i.e in combination trading, As the distance travelled in ballast by oil tankers has traci- tionally been about equal to the distance traveliedin toaded condition, the carriage of bulk cargo on the return tnp may considerably reduce the cost of anspor pe on of ‘cargo cari 92. In this connexion, it has been reported that sizable iron-ore purchases have recently been mace by Japan in Canada, Brazil and Sweden, which will be transported in combined carriers with Persian Gulf oil being lifted on the return leg.*® From eveilable information about the Brazilian ore freight agreement, ithas been suggested that, with combination trading, ” the iron-ore shipping costs per ton could be reduced from $3.25, with return in ballast, to $2.25, a reduction of 30.8 per cent (@ Ore and bulk carriers 93, Between 1965 and 1969, (mid-year figures), the number of ore and bulk carriers** in the world merchant = The Moor Ship (London, August 1970). 2 See United Kingdom Board of Trade, Committee of Inguiry Into Shipping: Report (Rochdale Repor), (Crd. 4357, London. TEM, Stationery Office, 1970), p19. #5'F. 3, Roberts, "Reducing ocean shipping. costs through combination tnding”, paper delivered at the Ninth International Symposium, Montreal, June 1970. 3 id 5 Vestels of 6000 grt end over, including combined orejoil and sorejbulkjoil carriers, (Lloyds Register of Shipping Statistical Tables.) fleet increased from 1,403 to 2,378, ic, by 69 per conti the total tonnage of these vessels, however, increased from 18,757,217 grt to 41,791,549 grt, ic, by almost 123 per cent; the average size of this type of vessel thus increased from 13,369 grt to 17,574 grt during the period considered, 94, The trend towards increasing sizes of ore and bulk cearricrs in service continued during the past year. AS at 1 July 1970, the world fleet included 2,528 such vessels with @ combined tonnage of 46,651,755 art (76,275,941 Givt), an increase of 6.3 per cent in the number of vessels ‘and of 11.6 per cent in tonnage (grt) over last year, the average size of vessels was 18,454 grt (30,172 dwt), an increase of 5.0 pet cent over last year. 195, The record of ships on order shows that the trend towards larger verses is still continuing. In 1970, there “were 482 bulk carriers on order with a combined tonnage of 18,876,674 dwt, an average of 39,163 dut per vessel. In ‘addition, 116 combined ore/oil and ore/bulhjoil carriers were on order with a total of 16,347,718 dwt, an average fof 140,929 dwt. The over-all average size of bulk carriers and combined vessels in 58,903 dwt, wich is 95 per cent higher than the average size of this type of vessels now in service; the largest bulk cartier on order at the end of September 1970 will have a capacity of 252,000 divt.®° (©) Container vessels 96, There has been 4 rapid expansion during the 1960s in the number of container vessels in service. As at | July 1970, the world fleet included 167 fully cellular container ships with a combined tonnage of 1,907,801 grt, anaverage of 11,424 ert per vessel, Included in these are 2 consider ‘able number of ships engaged on short sea trade routes between highly industrialized areas, which are more effec- tively served by frequent sailings of smaller vessels. 97. On the high sea routes, however, the tendency towards larger ships may be observed also with respect to this type of vessels. The full container ships which inaugu- rated the container services across the Pacific in 1967 had f capacity of 750 containers and a speed of 21 knots; the Container ships to be placed on the Japan/Eurape route will have a capacity of 1,750 containers and a service speed Of 26 knots.°" Furthermore, orders have been placed for Tull container ships which ‘will be used on the North ‘Atlantic route with a capacity of 1,100 large containers (G5 and 40 fees) and with a speed of 33 knots. 98. As at 31 July 1970, 180 container ships were on ‘order, with a combined capacity of 3,636,020 dwt, ar average of 20,200 dwt por vessel. (©) Nuclear-propelled merchant vessels 99. “Trials are at present being conducted with the firs nuclear-propelled ship of the Federal Republic of Ger many; the first nuclear-propelled ship of Japan wa: Ag w 3 July 1970. (Falrplay Imerrational Shipping Journal London, 27 August 1970) ‘© See Rochdale report, p. 137. 8 See Zoien (Tokyo, November 1970), p. 21 5 See OECD, Maritine Transport 1908: A snudy by the Martin ‘Traesport Commitie (Paris, 1970), pars, 142. 2