CHART I-8

OCEAN FREIGHT RATES ON PRINCIPAL MOVING COMMODITIES OF TMT TRAILER FERRY INC. (C. GORDON ANDERSON, TRUSTEE) FROM MIAMI/JACKSONVILLE TO SAN JUAN, PUERTO RICO

September 1, 1960; June 1, 1968

150

25

CANNED/BOTTLO GOODS,

BATTERIES, NOS

MACH., NOS
TELEVISION SETS >

RADIOS & PARTS
ROADMAKING MACH.'

RANGES, ELECT.
ROAD SCRAPERS
ELECT. MACH, NOS

EARTHMOVING

SI 28

NOTE 1: FOR FULL DESCRIPTIONS, SEE APPENDIX E, TABLE I. ABOVE COMMODITIES

ARE LISTED IN DECENDING ORDER OF REVENUE IMPORTANCE.

CHART IV-9
FREIGHT RATE STRUCTURE : TOTAL RATES
GULF-PUERTO RICO LINES, INC.
FROM NEW ORLEANS, LOUISIANA TO SAN JUAN, PUERTO RICO
February 15, 1961; June 1, 1968

CHART IV-10

OCEAN FREIGHT RATES ON

RATES ON PRINCIPAL

PRINCIPAL MOVING COMMODITIES
ON GULF-PUERTO RICO LINES, INC.
FROM NEW ORLEANS, LOUISIANA TO SAN JUAN, PUERTO RICO

September 1, 1961; June 1, 1968

CENTS PER CUBIC FOOT

CENTS PER CUBIC FOOT

1968

IN DOLLARS PER
1,900 BOARD FEET

40

35

60

60

-30

NON- ELECT.

275

ELECT, MACH, NOS

CEREALS, NOSSO

Gorosa COTTON, PIECE

ONIONS, IN CRATES

PLASTIC PRODS. NOS

BOXES, K.O da AIR CONDITIONERS

CARTONS, FIBERBD

INSECTICIDE

RUBBER GOODS, NOS

COMMERCIAL VEHICLES, NOS?

STOVES, NOT ELECT

DRY GOODS. NOO

250

ROUGH LUMBER:

BUNDLED
ROUGH LUMBERS

TRACTORS (AGRIC) LEATHER GOODS, NOS VACUUM BOTTLES AND

CENTS PER 1OO LBS.

225

200

200

175

Of 56 items shown, 48 containerizable.
On container rates-

17 Rates remained steady
9 Rates decreased from

3 to 18%
22 Rates increased from

3 to 181%

175

150

150

CORSAGE,

IES SHEETS

BREAKBULK RATESNON-CONTAINERIZABLE

ID. UNDER

MALT IN BAGS ONIONS IN BAGS

FLOUR ©

LARO, NOS
WRAPPING PAPER

LARD IN BULK 88
COTTON IN BALESUS
COTTON IN BALESE
HIGH DENSITY

FEEDSTUFFS %

FOODSTUFFS, NOSLO FEEDSTUFFS

OIL, NOS UNDER 80 CF/TON

OVER 80 FITON

PIGS FEET CANNED MILK MILK, PALLITIZESS

PULPBOARD, N BXSO

TIRE & TUBES

SOURCE: APPENDIX E, TABLE 7.

NOTE 1: FOR FULL DESCRIPTIONS, SEE APPENDIX E, TABLE 7.

PUERTO RICO-VIRGIN ISLANDS TRADE STUDY

FEDERAL MARITIME COMMISSION - 1969

FREIGHT RATE STRUCTURE: DIFFERENTIALS-TL TRAFFIC
SEA-LAND SERVICE, INC.
FROM NORTH ATLANTIC AND WEST COAST PORTS
TO SAN JUAN, PUERTO RICO - June 1,1968

30 35 40 45

50 55 6065 70

80 & over Rates in cents per cubic foot

PUERTO RICO - VIRGIN ISLANDS TRADE STUDY
FEDERAL MARITIME COMMISSION

1969

SOURCE: APPENDIX D, TABLES I AND 5.

Land's 1964 median measurement rate declined by about 4 percent to 80 cents per cubic foot on June 1, 1968. On the other hand, its median weight rate increased about 5 percent from 186 cents in 1964 to 196 cents on June 1, 1968. The history of Sea-Land's TL and LTL rate changes on 28 principal moving commodities 51 from the West coast is contained in appendix E, table 9 for September 1, 1961 and June 1, 1968. This appendix shows that of these 28 rates, more than 92 percent remained steady or declined from one to 53 percent on both TL and LTL movements during the 7-year period. On LTL traffic, 73 percent of the rates remained steady and 19 percent declined. Only two LTL rates and one TL rate increased slightly (4 percent).52

Although Sea-Land's West Coast to Puerto Rico rate levels have had a favorable history since Sea-Land's entry into this trade, these rates are high compared to its North Atlantic rates. The favorable rate history, in part, was made possible by the relatively high AQ rate structure which Sea-Land inherited when Water. man, the last breakbulk conference carrier serving this trade, departed the service in 1963.

All categories of West Coast rates are considerably higher than those applicable to North Atlantic-Puerto Rican traffic. Various individual shippers have indicated that rates from the West Coast are high.53 Chart

IV-12 reveals that Sea-Land's West Coast weight rate structure, on the whole, is some 40 percent higher than its North Atlantic weight rates. Chart IV-11 shows that Sea-Land's West Coast TL weight rate structure is some 70 to 80 percent higher than its corresponding North Atlantic rate structure. The comparison of SeaLand's North Atlantic and West Coast rate structures is summarized in table IV-3 below.

Sea-Land's West Coast LTL and AQ rates are also considerably higher than its North Atlantic rates. Portto-port distances, of course, are much longer in the West Coast-Puerto Rican trade than in the Atlantic trade. The sailing time, is about three times as long (i.e. 13 days from West Coast ports versus 4 days from New York) which increases operating costs in the West Coast-Puerto Rican trade. Compared to the past breakbulk services of the conference system, Sea-Land's efficiencies gained through the use of containerships from the West Coast have improved operating practices and costs in this trade considerably over the past years. These savings should continue to be passed on to the shipping public in the form of reasonable rates.

According to Sea-Land, its vessels in the Viet Nam service that do call at Seattle and Oakland are devoted to the military which has priority demand on the space. When space is available on these vessels on the Seattleto-Oakland leg, commercial cargo is accepted and car. ried for transshipment at Oakland to San Juan.54 Direct service from Seattle/Portland to Puerto Rico should be considered when traffic conditions warrant. If Seatrain's proposed entry into the West Coast-Puerto Rican trade in fiscal year 1970 becomes a reality, it may improve service and possibly ocean rate levels in this trade.55

51 Appendix C, table 2 shows Sea-Land's principal castbound moving commodities in the West Coast.Puerto Rican trade. These commodities include the following articles : rice, beans, meats, canned goods, tomato paste, various fruits--principally apples, grapes and pears, dried fruits-soaps, paper bags, plastic materials, certain clays, cleaning compounds, and lubricating oils. These commodities comprise a substantial portion of the eastbound freight revenues earned by this carrier.

52 During the latter part of 1968, Sea-Land increased rates on approximately 20 commodities, mainly iron and steel products.

63 During the course of the study, the FMC conducted an extensive survey of Puerto Rican industries by means of about 2,400 questionnaires to determine their transportation problems. This survey by means of questionnaires revealed various shippers complain of high rates on powered or electric scaffolds, medi. cines, vegetables, canned and bottled goods, paper products (e.g. wrapping paper and paper towels), dolls, and materials for the manufacture of chocolate moving from West Coast ports to Puerto Rico.

54 Letter of Frank Hiljer, Jr. Sea-Land Service, Inc., July 7, 1969, to Paul Gonzalez, Chief, Branch of Trade Studies and Special Projects, FMC, p. 4.

55 Seatrain Lines, Inc. Annual Report 1968 (New York: 1968), pp. 3-6.