1939: Merchant Marine, American

Launchings of 1939.

The year 1939 included both the most important gain and the most important setback to the shipping industry since the World War. The gain was represented by the first launching of a group of dry cargo ocean-going ships since shortly after the first World War. These ships were part of the Maritime Commission's scheduled 500 to be completed within ten years. By the end of November, 29 new ships had been launched. These included nine tankers with a cruising speed of almost 20 knots, larger and more heavily powered than anything built in the United States up to that time. The tankers were considered of great national defense value in that they could follow the fleet in time of war. Also included were 14 of the Commission's C-2 type 15½-knot freighters. These, the Commission's first design, are half again as fast as the average freighter in American nautical commerce and are larger and have more efficient cargo handling equipment. Trials have shown them to be the most efficient of their class in the world and due to more rapid turn-arounds they are able to carry substantially greater cargo than the old freighters they replaced. The first of the C-3 type vessels, somewhat larger and faster, was also launched during the year. Still to come are smaller, 14-knot freighters of the C-1 type and a number of other cargo and passenger-cargo ships.

Setback Due to Neutrality Legislation.

The setback to American shipping came in the enactment of neutrality legislation later in the year which had an immediate and drastic effect on American shipping. It is estimated that provisions of the law which prohibit American ships from traveling to belligerent ports or through combat areas will result in withdrawal of approximately 90 American ships of about 600,000 tons. New services will be found for many of these vessels. But whether or not it will be possible to use all of them will not be known for some time. The President Roosevelt of the United States Lines will be used in the New York-Bermuda run. Lykes Brothers has chartered nine ships to the Chilean Nitrate Sales Corporation to carry nitrates to the United States. Increased cargo to South America has provided business for some of the new freight ships which previously had been assigned to the trans-Atlantic trade.

Steamship Services Established or Renewed.

One new steamship service was established, the Puget Sound-Orient Line, operated for the account of the United States Maritime Commission. This provided cargo sailings from Pacific-Northwest ports to the Orient, which had not been available under the American flag since the American Mail Line withdrew its ships in August 1938.

Services to Spanish ports which had been discontinued during the Spanish Civil War were resumed by the American Export Line and Lykes Bros. Steamship Co. Late in the year the Maritime Commission chartered three of its shipping lines, the American Hampton Roads-Yankee Line, the America France Line, and the Oriole Lines to United States Lines Company. The lines operated in the trans-Atlantic trade and 16 vessels were covered in the charter.

During 1939, the American President Lines, Ltd., (reorganized Dollar Steamship Lines) went into full operation with fortnightly sailings in the round-the-world service, and likewise in the trans-Pacific service, spaced so that there was a weekly sailing of American flag vessels across the Pacific. The Government-established American Republics Line from New York to the east coast of South America had a most successful year, and with the increased emphasis on Latin-American trade and cooperation, gave promise of still greater prosperity. The line runs from New York to Rio de Janeiro, Santos, Montevideo, and Buenos Aires. Success of the passenger service inaugurated at the end of 1938 was believed due in part to the speed and attractiveness of the three liners, SS. Argentina, Brazil, and Uruguay which were luxuriously equipped for the South American trade. The freight service of the Good Neighbor Fleet operated by the American Republics Line also showed encouraging gains.

New Ships Projected.

American steamship lines began to offer substantially improved service with new ships being built under the Maritime Commission's construction program. They provide, particularly, efficient cargo handling equipment, economical operating costs and increased speed. About 25 of these were expected to be available by the close of the year. Several were placed in service on the Moore-McCormack Lines Scantic service to Scandinavian and Baltic ports. The 12 high-speed tankers which were built by the Standard Oil Company of New Jersey, with the Maritime Commission paying the cost of national defense features, including the cost of providing the additional speed above normal tanker requirements, were so successful that three were purchased by the Navy and two by the Keystone Tankship Corporation of Philadelphia. One was placed in service by the Standard Oil Company from New York to Aruba, and two in the coastal service.

The America, largest commercial ship ever built in an American yard, was launched August 31 under the sponsorship of Mrs. Franklin D. Roosevelt. The vessel is 723 feet long, has a 92 foot beam and is 100 feet deep from keel to uppermost deck. Gross tonnage is about 30,000 and expected speed 22 knots. The America will have a crew of 639 and accommodate 1,219 passengers. (See also TRANSPORTATION.)

In a special message read at the launching by Mrs. Roosevelt, the President described the event as one of the most important to take place in the world this year. 'It signifies an early return of the merchant fleet of the United States to a dominant position on the oceans of the world. When the Maritime Commission was created in 1936 our merchant fleet had lapsed into a lamentable state. New construction of ocean going vessels had virtually ceased following the War and the average remaining economic life of the merchant fleet was less than five years. Now that situation is changed. Contracts will have been let for approximately 100 ships by the end of this year. Eighteen other ships have been launched.

'The program of 500 ships within ten years which has been developed by the Commission and approved by the Executive with consideration of our national defense as well as our commercial needs, is one of which the nation can fairly be proud and in which every citizen has a direct interest. It is not an extravagant program. It is a modest program which will give this country a fleet competitive, if not superior, in speed, efficiency, and safety to those of other nations. It will place 3,950,000 gross tons of new ships on the high seas.'

The Commission's construction program was subsequently accelerated so that orders planned for 1940 were in many cases issued in the fall of 1939. By the end of November there were 141 ships ordered. The program included a large number of Diesel propelled vessels, marking the first time Diesel propulsion has been given adequate recognition in American shipyards. See also UNITED STATES: Budgetary.

Other Developments.

Freight rates were steady until the outbreak of the European war when sharp advances occurred due to increased hazards of operation and increased operating costs, such as war risk insurance and the requirement for higher compensation to crews.

Movement on the Great Lakes was the heaviest in years, due largely to expanded operations of the steel industry. The trade consisted of iron ore from the head of the Lakes to Lake Erie and coal on the return voyage, with some carriage of package freight.

With the commissioning of two training ships and establishment of four training stations, the Maritime Commission made substantial progress in its training program for licensed and unlicensed seamen in the United States Maritime Service. These facilities were expanded late in the year to provide training for seamen unemployed as a result of the Neutrality Act.

The European war caught thousands of Americans abroad and passenger facilities on returning ships were insufficient to meet the tremendous demand. Cots were set up in the public rooms of liners. Freight ships brought passengers far beyond their ordinary capacity. The Maritime Commission arranged the charter of five coastwise vessels for the sole purpose of repatriation. See also UNITED STATES: Transportation.