APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090023-1
from operations). Eleven domestic and one foreign owner, each having more than 100,000 d.w.t., together control about 85% of the total fleet deadweight tonnage (239 ships). The largest of these owners are as follows:
| Owner | Ships | D.W.T. |
|---|---|---|
| Axel Brostrom & Son, Goteborg | 63 | 1,382,546 |
| Salenrederierna, Stockholm | 43 | 1,282,170 |
| Granges A/B, Stockholm | 19 | 715,680 |
| Malmros Rederi A/B, Trelleborg | 9 | 584,440 |
| Axel Axelson Johnson, Stockholm | 32 | 496,695 |
| M. Bergman, Kungsbacka | 4 | 401,500 |
| Total | 170 | 4,863,021 |
The only foreign owner is Stove Shipping, Oslo, which controls eight ships aggregating 162,300 d.w.t. A few owners control many ships, but most of the shipowners have from one to three ships.
In order to compare more effectively with "flag-of-convenience" fleets and those of other traditional maritime nations, Swedish shipowners have concentrated on structural and technical modernization of their fleets. Rapid changes in structure have been necessitated by the demands of shippers and by technical innovations for adaptation to international shipping standards. In addition to fleet modernization, some shipowners have been engaged in reorganizing their shipping enterprises, either through merging one or more Swedish shipping companies or entering into cooperative agreements with foreign-flag shipping interests for more productive operations.
Since 1967, Swedish shipowners have concentrated on selling and scrapping a large amount of noncompetitive tonnage and replacing it with more efficient used or new units and have added to their fleets highly specialized units especially designed for employment on new trade routes.
Most of the fleet is engaged in liner (scheduled) service and has experienced continuous increases in operating costs. During 1970, shipowners' costs were estimated to have risen by 30%, largely the result of increased wages, cargo handling, and bunkering (fuel). In an effort to offset one of the highest crew wage rates among the world's merchant fleets. Swedish owners have concentrated on reducing workload and replacing manpower aboard ship by automation and technical improvements, as well as disposing of less productive ships requiring large crews.
In October 1971, Swedish shipowners had on order for delivery through 1975 a total of 86 new ships aggregating about 4,859,300 d.w.t. About 93% of this tonnage comprised 25 tankers, including seven units each of more than 230,000 d.w.t.; 10 tanker/ore and tanker/ore/bulk carriers ranging between 100,000 and 270,000 d.w.t.; and 12 bulk-cargo ships between 28,400 and 115,000 d.w.t. About 67% of the total deadweight tonnage on order was placed in domestic shipyards and the remainder in shipyards in East Germany, Finland, France, the Netherlands, Norway, Spain, the Soviet Union, West Germany, and Yugoslavia.
In addition to ships of 1,000 g.r.t. and over, there are several hundred smaller merchant ships employed in coastal operations and in trade with neighboring countries bordering the Baltic Sea. Included in this trade are about 70 tankers ranging between 100 and 999 g.r.t., totaling about 26,000 g.r.t., and an undetermined number of dry-cargo, passenger, and ferry units. Included in Sweden's ferry fleet are 31 car/passenger ferries of 1,000 g.r.t. and over, totaling about 92,000 g.r.t., which are employed between Swedish ports and between Swedish and other Northern European ports. The oceangoing fishing fleet consists of about 100 vessels betweenn 100 and 999 g.r.t., totaling 16,500 g.r.t.
Merchant-marine functions are administered by the Ministry of Communications through the Department of Shipping and Board of Shipping. Sweden is a member of the Intergovernmental Maritime Consultative Organization (IMCO) and is party to the following IMCO conventions: Safety of Life at Sea, 1948 and 1960; Prevention of Collisions at Sea, 1960; Oil Pollution, 1954 and 1962; Facilitation of International Maritime Traffic, 1965; and Load Lines, 1966.
The basic philosophy underlying the nation's maritime policy is one of freedom of competition on the seas. However, Swedish shipowners engaged in trade between foreign countries are faced with increasing hardships caused by flag-discrimination practices of foreign governments. As a measure to counter such discrimination against Swedish ships, the government prohibits Swedish shipping interests from the chartering of or transport by ships registered in the discriminating countries. Except for this prohibition, the government policy toward merchant shipping is nonrestrictive and nondiscriminatory; there is no significant intervention in operations of the shipping industry.
In keeping with the government's policy of noninterference and the shipowners' preference for free enterprise, no direct subsidization is provided for fleet development or operations in international trade. Indirect assistance to shipowners is primarily in the form of tax benefits. Shipowners are not taxed on earnings derived from the sale of ships providing such earnings are used for acquiring new ships; owners are
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APPROVED FOR RELEASE: 2009/06/16: CIA-RDP01-00707R000200090023-1
