1 Prior to Oct. 2, 1935, water rate was $5.20; effective July 6, 1936, it was $6, and effective June 1, 1937, it became $6.50. At the time of this calculation, the water rate was uniformly $5.40 per ton. 2 Ocean rate was uniformly $3.58 except for Los Angeles and Long Beach, which were $5.45. 3 Via Albany additional port charges of 60 cents per ton were incurred prior to Feb. 27, 1937. In 1936 rate from Baltimore was $4.10. In 1936 rate via Toledo and Detroit was $5.58; via South Haven, $6.50 and Green Bay, Manitowoc, and Milwaukee, $6.70. NOTE.-Rail rates include emergency charges. OTHER FACTORS IN TRANSPORTATION OF WATER-BORNE PULP In the case of sulphite shipped from mills in the Northeastern and Lake and Central regions and that shipped by rail from the West coast, the two important factors of transportation involved are the freight rate and the weight or density of the pulp. Shipments are made regularly, in carload lots or less, direct from shipper to consumer. The same is true in general with respect to Canadian pulp sold in the United States. In the case of the water-borne pulp, however, both intercoastal and transoceanic, other factors involved are transportation from producing mill to port of loading, marine insurance, storage and handling, and other accessorial and forwarding charges. The cost of moving pulp from producing mill to port of loading is absorbed by the shippers both in the United States and abroad, and on the average for total shipments is probably of no great significance. With few exceptions the domestic mills which make intercoastal shipments of pulp are accessible to ocean steamers. Occasionally it is necessary or desirable to lighter or otherwise move parcels of pulp to a steamer at another port. While the extra cost in specific cases is substantial, it does not to any great degree affect the average cost of transportation. In the case of German pulp, inland freight to port of loading is probably of greater significance than in the case of Swedish, Finnish, and Norwegian pulp because the German pulp shipped to the United States comes from mills located in the interior. In the other three countries many of the mills load direct to the ocean carriers, and the inland freight is not, on the average, a significant factor. Marine insurance on domestic intercoastal pulp is usually 35 cents per $100 of value. Insurance on pulp transported from Europe is paid or contracted for by the shipper and definite information respecting the rates is not available, but it is believed that the vessels used enjoy favorable insurance ratings. The conditions affecting storage, handling, and forwarding since 1935 have been practically the same for both domestic and imported pulp. Formerly, imported pulp was granted 15 days free time at the receiving port, whereas the free time on domestic pulp was limited to 5 days. At present free storage up to 15 days is allowed both imported and intercoastal pulp at most ports. An exception to this period of free storage has prevailed to some extent at New York, owing to the practice of transoceanic carrier services permitting imported pulp to remain on the piers for further time without penalty. The Maritime Commission is conducting an investigation with a view to regularizing the free-time practices. Considerable quantities of pulp are stored beyond the free period. The foreign pulp in storage greatly exceeds the domestic in quantity. This is due in part to the much greater quantity sold and handled, to the fact that shipments to importers or agents are made in advance to enable them to fill contracts calling for periodic deliveries, to some pulp being consigned in advance to meet emergency demands, and in a large measure to the fact that stocks must be built up for delivery to consumers during periods when navigation from the northern European mills is closed. However, it is necessary that West coast mills also carry some pulp in storage at various eastern ports because of the time required for movement from the Pacific Northwest to the Atlantic coast. This period, which ranges from 5 to 7 weeks, is considerably in excess of that required for transporting pulp from Europe. Storage charges are paid and absorbed by the seller, except in cases where the purchaser is not ready to accept delivery at the specified time. Handling and forwarding charges are practically the same for both domestic and imported pulp at the principal ports. Loading on cars and handling are usually free when the rail rate is 9 cents per 100 pounds ($1.80 per ton of 2,000 pounds) or over. If less than 9 cents, the charge for loading is usually 50 cents per ton of 2,000 pounds. If pulp is moved by truck from railroad piers, the time of free storage is limited to 48 hours, and a wharf charge, usually 12 cents per ton, is incurred. Lighterage and other costs, which are usually absorbed by the railroad when pulp is shipped by rail, are also charged when the pulp is moved by truck. At Albany, prior to February 27, 1937, wharfage charges of 20 cents and handling or loading charges of 40 cents per ton were not absorbed by the rail carriers. Since February 27, 1937, following a decision of the Interstate Commerce Commission, these costs have been absorbed by the railroads. Wharfage and loading charges on pulp moving by truck from Albany remain, respectively, 20 and 30 cents per ton. RELATION OF SHIPPING WEIGHT TO AIR-DRY WEIGHT Pulp is sold and invoiced on a basis of air-dry fiber, which means pulp containing 10 percent moisture by weight. Pulp of this consistency is known as 100 percent air-dry, and variations from it are expressed as percentages of the air-dry basis. Since the pulp is rarely dried to this precise condition, the shipping weight usually exceeds the air-dry weight of pulp for which the purchaser is invoiced. However, the moisture content can be reduced below 10 percent and it sometimes occurs that shipments are more than 100 percent air-dry, in which case the shipping weights are less than the air-dry tonnage. Pulp in sheets or rolls, or shredded, designated as dry pulp, may range as low as 80 percent air-dry. Lapped pulp, or wet laps, ranges from 35 to 45 percent air-dry, or the laps may be compressed or baled to about 60 to 65 percent air-dry. Shipments from a single mill are approximately of uniform consistency, but actually each lot shipped may vary slightly in consistency and these variations are determined in fractional percentages. The data obtained by the Commission indicate that the domestic pulp of paper grades shipped from the West coast averaged about 92 percent air-dry and the European pulp averaged about 95 percent, the range of variations from these averages being slight. The foregoing percentages of air-dry content result in shipping weights of about 108 percent and 105 percent, respectively, of air-dry content. Rayon pulp is shipped at about 105 percent air-dry; the shipping weight is, therefore, about 95 percent of the invoiced quantity. Some pulp shipped from mills in the Northeastern and Lake and Central regions is in lapped form at from 35 to 50 percent air-dry. Most of the pulp shipped substantial distances by mills in these two regions, however, is dried in sheets or rolls and averages about 80 percent airdry. Canadian pulp in general is shipped with a greater degree of moisture than European and domestic sulphite. Some Canadian sulphite is shipped in laps, but the pulp from the mills which furnish the bulk of Canadian sulphite of paper grades sold in the United States is usually 80 to 90 percent air-dry. The approximate average of Canadian sulphite sold to United States paper mills is 82 percent air-dry, the corresponding shipping weight being 122 percent of the invoiced quantity. Rayon pulp from Canada is about 103 percent air-dry. Table 83 shows the approximate costs of transporting pulp per ton of air-dry content from different sources to the destinations shown in table 82. These costs are based on the rates shown in table 82, adjusted to reflect the average variations from air-dry weight, and to include approximate insurance charges on marine shipments. |