The Shipping Rationalization and the Development of the Shipbuilding Industry
1976 Volume 18 Issue 2 Pages 24-39
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1976 Volume 18 Issue 2 Pages 24-39
Japanese shipbuilding industry had been on the condition of the serious depression ever since the slump in 1920. But, there was a considerable improvement in mercantile shipbuilding in the period of the 'motorship boom' 1928-29. This paper aimes to clarify the details of this boom. The 'motorship boom' was a rationalization movement of the shipping. After the First World War, Japanese owners purchased a lot of aged ships at very low prices from foreign owners. But, the entry of these aged ships to the markets exacerbated the depression in freight rates. Moreover, tramp shipping was dealt a double blow in the years 1927-28 ; the insurance of the ship and the wage rates of seamen were raised in these years, and consequently voyage costs increased considerably. To tide over this difficulty, the tramps owners wished to modernize their old ships, and began to adopt economical motor ships. The economy of the motorship was a vital competitive factor. For liner vessels the advantages of the diesel engine were soon recognized. Nihon Yusen and Osaka Shosen, the largest liner companies in Japan, adopted the fast motor ships with great enthusiasm. The route subsidies given to these companies encouraged the building of the high class liner tonnage. The rationalization of shipping stimulated the demand for motorships and provided the shipbuilding industry with its opportunity for expantion. In the period of this 'motorship boom', a few large shipbuilding companies, notably Mitsubishi, Mitsui and Yokohama Dock, were established in supreme position in mercantile shipbuilding. By virtue of their resources, these zaibatsu-affiliated companies gained a notable lead in the construction of motorships, and this was a vital factor in securing contracts. The greatest deppression stopped this 'mortorship boom'. But, in 1932 a subsidized 'scrap and build' scheme was started and under this scheme the rationalization movement of shipping was continued again.
