The plantation owners that could retain ownership and ship independently found themselves in a bind. If they wanted to ship their own cotton to market, the packet ship owner would charge them very high rates that were slightly under the rate of the foreign ship rate, plus the Federal shipping penalty that would be added.
The success of the shipping business produced larger and faster transoceanic freight ships. These larger ships required 18 to 22 feet of depth to operate.
Sandbars at the mouth of the Mississippi, and particularly at the shallow Charleston harbor presented the merchants with a major obstacle to using the more efficient new shipping. Northern shipbuilders solved this problem with a unique vessel of shallow draft that had an almost perfectly flat bottom.
This made it possible to clear the sandbars without getting stuck. An added benefit was that now bales of cotton could fit more easily in the flat-floored hold and carrying capacity was greatly increased. At first, the sailing qualities of such a vessel was doubted, but soon, to the relief of their owners, these flat-bottomed ships proved to have fine sailing qualities. These were the ships used in the coastal trade.
With these technical advancements, cotton was loaded onto the coastal packets, shipped to New York via these fast boats, offloaded to warehousing,and shipped out on the large V-bottomed ships that sailed the high seas to Liverpool.
All along the way, the middlemen took their cut and New York merchants prospered.
Regularly scheduled coastal packet shipping became a very lucrative trade. Stevedores, dock workers, warehouse owners now had lots of work. Insurance agents, bankers, accountants, livery agents, boat builders, riggers,and cargo shippers vastly benefited.
Wharf owners stayed busy and Atlantic packets sailed eastward on the “Downhill Passage” with full cargoes and stayed very busy for years.
With the control of the transportation trade business being dominated by Northern interests, and now being vastly aided by the Warehousing Act, southern planters began to complain.
Many estimated that New York merchants were making 40 cents on every dollar, but being constantly in debt to the New Yorkers, they were hardly in a position to change this state of affairs.
The Northern business interests were in full control of the market. However, by the end of the antebellum period, with southern ship building beginning to establish itself, improvements in both New Orleans and Mobile Bay harbors, and South Carolina's self-financed dredging of Charleston arbor, the entire northern shipping combine was about to become vulnerable to direct European trade.
Suddenly, secession totally eliminated the transportation of Southern goods. This brought about a 60% drop in volume for all the Northern operators....IMMEDIATELY.
Lincoln's office became filled with Governors and businessmen immediately after his inauguration.
This made it possible to clear the sandbars without getting stuck. An added benefit was that now bales of cotton could fit more easily in the flat-floored hold and carrying capacity was greatly increased. At first, the sailing qualities of such a vessel was doubted, but soon, to the relief of their owners, these flat-bottomed ships proved to have fine sailing qualities. These were the ships used in the coastal trade. Like this?
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The Northern business interests were in full control of the market. However, by the end of the antebellum period, with southern ship building beginning to establish itself, improvements in both New Orleans and Mobile Bay harbors, and South Carolina's self-financed dredging of Charleston arbor, the entire northern shipping combine was about to become vulnerable to direct European trade. Suddenly, secession totally eliminated the transportation of Southern goods. This brought about a 60% drop in volume for all the Northern operators....IMMEDIATELY. Lincoln's office became filled with Governors and businessmen immediately after his inauguration.
All demanding he "DO SOMETHING" to get that money back. People of today simply have no understanding of the economic desperation that existed in that by gone era.
Earning a living was *HARD*. Most people in the North did not initially realize the economic cost to them of the South going independent. When the pain began to bite, many of them realized they were facing bankruptcy and destitution.
A lot of people don't want to understand this because they very much want to believe that their "team" was morally right, and the thought that they were not is just abhorrent to them.
They want to believe what they were taught because everyone wishes to believe they are the "good guys."
As I have said repeatedly, My family left Europe in the 1900s. By the time we got here, the war had been over for 35 years or more. I can be objective because I don't have a dog in that fight.
WarIsHellAintItYall:
"With these technical advancements, cotton was loaded onto the coastal packets, shipped to New York via these fast boats, offloaded to warehousing,and shipped out on the large V-bottomed ships that sailed the high seas to Liverpool.
All along the way, the middlemen took their cut and New York merchants prospered." But only for that 20% of US cotton which shipped from Atlantic ports.
Half of US cotton shipped from New Orleans and 85% of that directly to Europe, only 15% to Northern US customers.
Most of the rest of US cotton also shipped from Gulf Coast ports in Texas, Louisiana, Mississippi & Alabama since that is where the cotton was grown.
As for who owned & operated cotton-carrying ships on the Gulf Coast, we are not told, but there's no reason to think they were anyone particular other than Southerners.