Competition Versus Coöperation in the Steamship Business

Shippers whether by rail or by water routes require, first of all, adequate and regular services at reasonable and relatively stable rates.The primary consideration is that of service.Under pres- ent-day conditions, the rates charged, though of importance to shippers, seldom impose serious restrictions upon trade, and it is probable that commercial transactions suffer more from frequent fluctuations in charges than from unreasonably high rates.Carriers, particularly steamship lines, require, for the successful development of their business, a dependable volume of traffic mov- ing in a steady flow and at rates that yield returns high enough to enable the carriers readily to secure the capital needed to develop adequate and up-to-date terminals and to provide the ships and other facilities required to handle a growing tonnage of traffic.Success in the transportation business doubtless depends more upon a steady volume of traffic than upon a large tonnage if it be fluctuating in volume.The steadier the flow of traffic the more fully can facilities and floating equipment be utilized; the greater the fluctuation in tonnage, the larger the unprofitable movement of vessels partly

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