Gangway No.1 Spring 1976 - BlueStarLine.org

Blue Slar­
Ihe position
loday
W/e are now well into 1976 and it might be
worthwhile reflecting on our results for
last year. Compared with 1974, our figures
last year took a significant turn for the
worse. In 1974 nothing went wrong, and
with full ships throughout the year, high
charter rates, and everyone clamouring for
space, it was easy to trade profitably.
Last year the inevitable happened. Most
of us felt that the shipping market was
probably destined to fall with a crash, and
it did. \Ve operate in a world market, of
COUIse, but it often seems as though the
shipping market takes after the British
stop-go economy, and in 1975 it stopped.
As the year moved on, cargoes fell away,
the beef mountai n grew, and European
exports to Ollr traditional areas declined.
The only buoyant area was the Persian
Gulf, being the one spot where chartering
opportunities were to be had.
However, when one hears of the disasters
that have befallen other shipping
companies, nmably tankers and bulkers,
our performance was not too bad. We were
nm forced into lay-up, our fruit ships were
fully occupied, albeit wi thout profit, and
above all our container services are
gradually proving to be the best investment
we have ever made. So, with a struggle we
Mrs E H Vesley
launches Almeda Slar
Almeda Star, the fifth of Blue Star Line's
new series of 'A' class refrigerated reefer
ships, was launched at Smith's Dock,
Middlesbrough, on 21 November. The
sponsor was Mrs E H Vestey, wife of BSL
chairman Mr Edmund Vestey.
Four of the new ships, Afric Star, A vila
Star, Andalucia Star, and Avelona Star
are now in service. The first three of these
specialist vessels have been operating since
June under contracts for the carriage of
bananas from Central America to Europe,
North America, and the Persian Gulf. The
contracts have been extended to cover
voyages to the end of this year.
ended 1975 in a just about break-even
position, having made good profits in 1974 . .
As far as the fieet is concerned we are
still managing, despite the gloomy prognostications
of a few years ago, to trade our
ships for most of their useful life and not
dispose of them prematurely. During 1975
we have sold Adelaide Star, Tasmania
Slar, and Wellington Slar. We were also
offered a good price for M ontevideo Star
and she has gone too.
New reefer ships
The most noteworthy event of 1975 has
been the arrival of the new reefer ships, our
first new series of ships since before
containerisation. Afric Star entered service
in February, A vila Star and Andalucia
Star in June, and Avelona Star in
December. Apart from a few teething
troubles, all have been trading well and
carrying exactly the sort of cargoes for
which they were designed-not alas at the
right sort of Freight Rates, but I have
referred to that above.
Two ships have been in the news- New
Zealand Star was in Luanda for many
months during conditions of war, and all
credit to those on board for their spirit and
enthusiasm during difficult times.
Secondly, Scoltish Star, long since the
property of insurance interests, came out
of the Suez Canal looking from all accounts
in quite reasonable nick.
What of 1976 and the future? As far as
profitability is concerned, we are still
bumping along the bottom, but one or two
isolated signs of improvement are appearing,
so wc are hopeful. The fleet will be
fully occupied until mid-year, and in
particular reefer cargoes are picking up
somewhat. Our problem areas are the
Crusader trade and South America. In the
Crusader trade we face stiff container
competition and we are studying the
future in depth to see what our next step
should be.
As for South America, there is an
announcement elsewhere in the magazine
about the cooperation between BSL and
L&H. Wc have decided to amalgamate the
management of L&H and BSL South
American trade, and based on Liverpool
the changes should bring about useful
economies.
Further ahead, the new ACTA
containership will be delivered in 1977, and
at the time of going to press we are
considering a further heavy lift ship.
Costs spiral
One tires of writing about the cost spiral
but it is the most important issue of today.
True there has been some improvement in
the UK due to Government legislation, but
in other parts of the world the problem has
worsened for us, particularly due to the
fall in the value of the pound-in itself a
by-product of our own troubles. Australia,
sadly, is rapidly losing out with fruit being
forced by their own costs out of world
markets, and it now costs us more to load
meat conventionaUy in Queensland than
was our total ocean freight rate just truee
years ago; we cannot recover this sort of
increase from our customers.
H owever, we are doing all we can to
develop new business and to find ways and
means of improving what we have. There
is no reason why our problems should not
be overcome and why we should not
continue to expand.
BR Hazlitt
Mrs E H Vestey
fAlmeda Scar l hits lhe water
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