Economic Intelligence Memorandum
CHARTERING OF NON-BLOC MERCHANT SHIPS BY THE SINO-SOVET BLOC
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CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
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Economic Intelligence Memorandum
CHARTERING OE NON-BLOC MERCHANT SHIPS BY THE SINO-SOVET9
RR5
/ WARKINO TIUs material contains information affecting the NaUonil Defense of thr United fltftiea within the mennlng/of tho espionage laws.ISC. Sect/lM andthefir revetaUoo ol which la any manner to an unauthorized jftrson is prohibited by law.
CENTRAL INTELLIGENCE AGENCY Office of Research and Reports
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FOREWORD
0 this Office, with the agreement of the Subcommittee of Transportation of the Economic Intelligence Committee,ew system of compiling information on ships chartered by countries of the Sino-Soviet Bloc from countries outside the Bloc. The new aystem is developed to the point where aggregative data9 ore nowand lt is expected that the charter register will be reasonably current by the end
Tlie charter of ships by the Slno-Soviet Bloc docs not reflectthe dependence of the Bloc on non-Bloc ships for shipping service. Part-load cargoes are shipped by Bloc countries on non-Bloc ships serving Bloc ports In liner service. This memorandum does not attempt to assess the magnitude or importance of non-Bloc liner service to the Sino-Soviet Bloc.
This memorandum has not been coordinated with other USTB agencies. This Office will welcome comments or suggestions from users of this mcDo'randum.
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IT ri T
cohtbnts
Page
Volume of Charters by Chartering Country
Volume of Charters by Flag of
Ships Under Time Charter
k. Tankers Under Charter
>. Impact of Sino-Soviet Bloc Chartering on the World Dry
Cargo Tramp
Appendixes
Appendix A. Statistical Tables
Appendix B- Gaps in
Appendix C. Source References
Tables
i
Merchant Ships Chartered by the Sino-Soviet
9
Merchant Ships Chartered by the9
: 'i
3- Non-Bloc Merchant Ships Chartered by9 Non-Bloc Merchant Ships Chartered by Czechoslovakia,
5- Hon-Bloc Merchant Ships Chartered by East Germany,
6. Non-Bloc Merchant Ships Chartered by9
7- Non-Bloc Merchant Ships Chartered by9
9. Non-Bloc Merchant Ships Chartered by9
H 09
9- Non-Bloc Merchant Ships Chartered by Communist China,
10- Non-Bloc Merchant Ships Under Time Charter to theBloc, by Flag of9
Merchant Ships Under Time Charter, by Charter-
ing Bloc Country,
Tankers Under Charter to thc Sino-Sovlet Bloc,
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CUARTERIHG OFCHAHT SHIPS BY THE SIHO-SOVJBr9
1- Volume iii' Charters by Chartering Country1'*
ountries of thc Sino-Soviet Bloc chartered merchant ships from non-Bloc countries for moreoyages involving more5 million deadweight tonsaccording to records available to this Office. The tonnage of ships under charter averagedullion DWT per month, of which moreWTships under time charter.* These charters are estimated bo have cost the Bloc at leastillion
The USSR and Communist China hired about two-thirds of thetonnage involved. Among the European Satellites, Poland chartered the most extensively. Bo records are avnilable of ships chartered to Albania or the Asian Satellites, but It Is possible that their trade was carried primarily by ships owned or chartered by other countries or the Sino-Soviet Bloc. The following tabulation shows the distribution of chartering activity:
"The estimates and conclusions in this memorandum represent the best Judgment or this Office as of* Two major groups of sources were used In compiling these charter
records. Sourcefor serially numbered source references, see Appendix C) waa used in identifying the charterer, thc ohlp chartered, and thc cargo carried. Source S/ provided such general referenceas dates and places of departure and arrival, ship tonnages, freight rates, and types of cargo.
*** Deadweight tonnage is the carrying capacityhip in metric tons that la, the difference between the displacement light and the displacement loaded. These listings are based on individual voyages rather than on Individual ships. Voyagesore accurate measure of the extent of chartering, because one ship could have been charteredumber of voyages. For ships under time charter the data are mode comparable by calculating one voyage for the outbound trip and one voyage for the inbound trip. Summaries of data on thoao charters are presented in Appendix A,hrough 2k, below.
t The method used in computing this estimate is explained In thc footnote on p.elow.
Million
Communist China
Germany
ofTons
1
The tabulation above does not indicate fully the extent to whichChina surpassed the USSR in the amount of time that it had non-Bloc ships at its disposal, because Communist China relied heavily on time-chartered ships. For the same reason, China also Spentmore money than did the USSR in chartering ships. These considerations are illustrated in the following tabulation:
Cymric let Chiru
Polaoi
C%ecvokla
of Average Deadveis!lt- Toiumg^
)
JOB
Eat Ion led fVyotat* for Charter Hire
(CM
it
is 17
relation to deadweight tonnage per month, China appears to have paid less than the other countries, probably because it obtained ships for low time charter rates8 and The rest of the Bloc obtained ships largely by paying the higher voyage charter rates.
* Estimates of average deadweight tonnages per month were calculated on the basis of data in Appendix A,hroughelow. Thc following methodology was used. China, for example,harter fixtures If each charter fixturo had ex-teuded foronths, the7 fixturesould havelUi months of charter fixtures, and the total deadweight tons under charter during theillion DWTwould have been the averageonth- Estimated on the basis of individualhowever, the actual time over which charter fixtures extended was2 percent of tile possible total. Average deadweight tons per month, therefore, would also bepercent of the maximum possible total,illion DWT.
Communist Chinaime-charter fixturesboutf which apparently were carried over The USSRland, vithnd Ik time-charter fixtures, respectively, were the only other countries of the Sino-Soviet Bloc that engaged extensively in time-charter transactions.
2- Volume of Charters by Plug of Ship
The total voyages of non-Bloc merchant ships chartered by the Sino-Soviet Bloc9 are listed by maritime flag in Flags that supplied moreWT were as follows, in order of
Thousand
Flag ofofTons
Cerman
3- Ships Under Time Charter
*# present data on time-charter fixtures of non-Bloc ships concluded by countries of the Slno-Soviet Blochese charter fixtures amounted, and the ships made atoyagesillion DWT, or aboutercent of5 million DWT Involved under all types of charter China accounted forercent of the voyage deadweight tonnage under time charter. Ships time-chartered for operations on the Chinese coast, however, were recorded only once pernd, therefore, the index of average deadweight tonnage per month gives even greater weight to Chinaime charterer, as shown in the following
* Appendix A, p.elow. ** Appendix A, Appendix A,elow.
1 Ko attempt has been made to record coastal Operations.
Chartcrer
Communist China
USSR
Poland
Others
Percent of Total Time-Charter Fixtures'
3
U.8
0.3
Index of Average Deadweight Tonnage per Month"
M
Negl.
Ships under Norwegian ond British flogs provided the greatest amount of service under time charter, as shown in the following
Flag of Ship
British Norwegian Creek Danish
German (West)
Average Deadweight Tonnage Per Month" (Thousand)
*
The average length of time that non-Bloc ships were under time charter varied according to thc flag of the ship and the country doing the chartering. Ships under time charter to Communist Chinaonths; thofle toonths; and those to the USSR,ontha. Ships under Danish flag averagedontha; under Swedish flag,onths; under Norwegian flag,onths; and under British flag,onths.
h. Tankeru Under Charter
ountries of the Sino-Sovlet Bloc chartered atankersoyages andillion DWT. These amounts represent almostercent of the total number of ships and almostercent of the total voyage deadweight tons chartered by the Bloc during the year. The USSR accounted for aboutercent and Beat Gernanyercent of the tanker tonnage. Records of tankers chartered by Ruaanla probably are incomplete. There is evidence that
Based on the tonnage of the fixtures. The method used ln computing this estimate Is explained In the footnote on p.bove.
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Rumania exports most of itssing tankers of the la-porting country, and there also Is evidence that some of the tankers recorded as chartered by the USSR were actually for Rumanian use. Even if the records were incomplete by as much asercent, however, Rumania would have accounted for onlyercent of the tonnage and Iselatively unimportant charterer of tanker tonnage. Norwegian tankers constituted the largest share of chartered tanker capacityillion DWT, orercent of the total ship tonnageercent of the average tonnage available per month. Tankers under Italian flagillion DWT, orercent of the total, but the Italian tankers generally made shorter trips than the Norwegian and accounted for onlyercent of the average tonnage available per month.
5- Impacto-Sovlet Bloc Chartering on the World Dry Cargo Tramp fleet
Thc world dry cargo tramp fleet* at the end9 amounted to aboutillion DWT, of which3 million DWT were laid up without employment. }/ The average active tramp fleetus8 million DWT, when allowance is made forillion DWT of ships laid up on the average throughout thend for one-half of anillion DWT of additions to the fleet during the year. Dry corgo tramp ships represent aboutercent of the total voyage deadweight tonnage of all non-Bloc chips hired by the Blocnd the minima average per month of non-Bloc* dry cargo tonnage under charter to thc Blocillion DWT. Therefore, the Bloc accounted for the employment ofercent of the activeercent of the total world tramp fleet
Dry cargo fixtures reported on the world charter market amounted6 million/ of which about5 million DWT) were recorded charter fixtures made by thc Bloc.
Thc number of fixtures and the amounts of tonnage Involved are significant only in that they indicate the amount of activity in the market and tho influence that negotiations or lack of negotiations may have on charter rates. Because In fact many negotiations and actual charter fixtures are not reported, the actual tonnage of world dry cargo fixtures9 "a* considerably in excess ofrfT reported by the maritime research services. Consequently, tho influence of the Sino-Soviet Bloc on the world charter market was much less than would be Indicated by use of the reported cargo-fixture data alone. The uncertainty about thc total world dry cargo fixtures,makes thc extent of Bloc Influonce on thc world charter market aore apparent when Bloc employment of shipping tonnage Is related to the tonnage of the active world fleet.
VeoselsWT and more.
* Including time charters and consecutive voyage charters.
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Table 1
Non-Bloc Merchant Ships Chartered by the Sino-Soviet Bloc a/
Charter Fixture*
nai or
Ton* (Thousarrf,'
Tons (Thousand)
Irrrolved SJ
{Thousand us
(*JS)
Picon
("est)
mf
Iberian
qramnrrlar
f/
*/
Bc:ause of Inclusions of certain rings la the category "Ctr.ere" In all twles, figures by flag given in1 not necessarily add to ths totals for each flag ibovn la this table.
trip lo sad outhip UDder tine charter Is included as one voyage,vo voyages for each round trlp( "Itt thoChinese-charter ad ships operating on tbe Chinese coast only. The latter are counted only once per fixture.
cd an individual voyage basis.
are Uohnal as far as possible sad cover charter hire only.
la eluding expenditures foroyages.
cf rounding, ccopceents nay not add to the totals shown and for the ease reason will not be in exact <the totals Inhrough 9.
including expenditures foroyages.
Toole 2
Non-Bloc Merchant Ships Chartered by the9
Fixtures
*/
Tons
Tons
Expenditures cj
of Ship
V
US $)
-
(West}
d/
cj
Each' trip in and outhip under time charter is included as one voyage, making two voyages for each round trip.
b. Estimated on aa individual voyage basis.
are minimal as far as possible and cover charter hire only.
of rounding, components may not add to the totals Hot including expenditures for eight voyages.
Table 3
Ken-Bloc Merchant Ships Chartered by9
Charter g/
Flag of Ship
Tons (Thousand)
Tons (Thousand)
Evolved y
Expenditures zj (Thousand US ii
(US)
:
K
(Wast)
d/
Each trip is
out
a ship under time
included as one
voyages for each round
on an individual voyage basis.
are minimal as far as possible and cover charter hire only.
of rounding, components may not add to the totals shown.
-
Non-Bloc Merchant Ships Chartered by
and
F:xturea hlTons
Of Ship
6/
(West)
a/
a/
se
,0
. flnlvtime.
fixture uas reenrdec
Estimated Expenditures c/ (Thousand US $)
L9!
2il
0
Bo
0
BO
on an individual voyage basis.
are minimal as far as possible and cover charter hire only.
of rounding, components may not add to the totals shown.
-
Table 5
Hon-Bloc Merchant Ships Chartered by East Geraany
Charter Fixtures
of Ship
Tons (Thousand)
Involved V
Expenditures c/ (Thousand US 1)
Dutch
Oarsan (West) Xcrvegian mtmUm) Others
17
/
159
JOG
one time-charter fixture vaswedish ship. Therefors, figures for voyageswill be the sane for all flags except Swedish. The number of Swedish fixturesoyages0 DWT of Swedish fixtures compared withDWT of voyages. aroixtures compared withoyages andWT of fixtures compared withvoyages.
on an individual voyage basis.
are minimal as far as possible and cover charter tire only.
including expenditures for six voyages.
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Tabic 10
Non-Bloc Merchant Ships Under Time Charter to the Slno-Soviet Bloc, by Flag of Ship a/
FIsr of Shi?
Fixtures
*f
Involved
Tons 'Thousand)
Tons (Thousand)
o
ii
(West)
c/
of Inclusions of certain flags in the category "Others,'" figures by flag given inot necessarily add to the totals for each flag shown in this table
purposes of comparison with voyage charters, each trip in and outhip under time charter isas one voyage, making two voyages for each round trip, with the exception of Chinese-chartered shipson the Chinese coast only. The latter are counted only once per fixture.
of rounding, components may not add to the totals shown.
| si
I ass 3EZ| -
i
Table 11
Son-Bloc Merchant Ship* Under Time Charter, by Chartering Bloc Country
Continued)
Fixtures
Deadweight Tons (Thousand)
Months Involved
Number 11
8
m
Voyages
Deadweight Tons (Thousand)
Chartering Country end Flag of Ship
East Germany
1
1
Swedish Czechoslovakia
Vest) Total b/
a"! For purposes or comparison with voyage charters, each trip ln and outhip under time charter la Included as one voyage, making two voyages for each round trip, with the exception of Chinese-chartered ships operating on the Chinese coast only. The latter have been counted only once per fixture, b. Because of rounding, components may not add to the totals shown.
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IJ
4
i
Table 12
Non-Bloc Tankers Under Charter to the Sino-Soviet9 x
(Continued}
Charter Fixtures &/
Chartering Country
Tons
Flag of Ship
Bloc Charterer
With the exception of tnree Norwegian tankers
by the USSR,
tankers recorded
ere on voyage charter or made only one voyage on tine-charter teres. Total voyages,the Norwegian tine-chartered tankers, case,T. Voyages of Korweglan tankersWT. Horweglan tankers chartered by the USSRoyages.WT. Because of rounding, coaponents ray not add to the totals shown.
li
GAPS IN UfTKIJJGEMCK
ocs not include all chartering activities of the Sino-Soviet Bloc, because ccnplete data are not available. Soviet charters of West German ships that were not mentioned in records available to this Office, for example, amounted to atovagesOn the basis of tonnage, this single item represents an understatement ofercent in total Bloc charters,ercenl. in total Soviet charters,
Charter fixtures of such ships
are not reporteo by thc charter markets in London, Hew York, or Athens.
It is believed that considerable tonnages In Swedish, Finnish, Dutch, and Danish coastal ships chartered for service In thc Baltic also are unrecorded, as well as charters for voyages between countries of the Sino-Soviet Bloc and South America.The actual extent to which the charter records are Incomplete cannot bo determined.
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appendix c
SOURCE BBRnWn
Evaluations, following the classification entry andave the following ilgn ficancei
Fource of Information
Poc
- Dfieumentary
-
by other sources
-
reliable
-
true
-
reliable
-
true
-
reliable
-
usually reliable
-
raise
-
reliable
-
be judged
be Judged
Evaluations not otherwise designated are those appearing on the cited document; those designated "RR" are by the author of thin Ko "RR" evaluation is given when the author agrees with the evaluation on the cited document.
lo Free Europe, periodic. U. Eval. RR 2'.
F-*- ir
lng Gazette, London, daily. II. Eval. RR king ofshipplnK Space for Polish Trade.
Eval. RR P.
Thc Shipping World. "London, weekly. U. Eval. RR 2.
-
nc->Newsletter Charter
g^ure^eportrd in Hew YorV and tondg" u. Li g
Polish Ocean Lines, Gdynia. Sailing Schedules, noothly. RR
Polish Steamship Company, Szczecin. Sailing Schedules, monthly. U. Eval. RR 2.
?. Lloyd's Shipping Index, daily. U. Eval. RR 2-
Lloyd's Shipping Index, Voyage Supplement, weekly- 0. Eval. RH Lloyd's Shipping Editors, London. Movements of Vessels Bound To or From "Iron Curtain" Countrica, daily. U. Eval. RRegister of" Ships, annual. U. Eval. RRommerce. Bureau of Foreign Commerce, Country-by-Comnod1ty Series, biannual. U. Kval. Doc.
Chamber of Coaatcrce, Buenos Aires. Boletin informative, weekly.
It. H 0.
ndon' Westinform Shipping Report no ISO ACc^tzvestudr of the Dry
eb 6l> U- Eval- RR a.
-
npr
Original document.
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