ABSTRACT
The decision to build the new liners at minimum cost of 15m was a gamble. By 1960 it was very evident that passenger numbers were falling due to the dramatic increase in the number of flights servicing the South American countries. In that year all the major European airlines offered services to South America. Tramp-ship freight rates fell by up to 50 per cent, and the availability of bulk shipments declined dramatically, affecting homeward freights for the Company's cargo ships. Houlder Line reported to shareholders that, although its refrigerated ships on the Argentine route carried good cargoes during 1961, freight rates were so low that they had 'not even earned their depreciation'. A 1943 report by the Company's passenger manager anticipated competition from air lines but appeared to conclude that, with increased numbers travelling, shipping companies might hold their own in terms of passenger numbers but they must resort to increased promotional activities.
