The Far Eastern Freight Conference was a co-operative agreement between a group of steamship owners and shipbrokers involved in scheduled cargo liner services principally between China and Japan, and European ports.
A steam passenger, mail and light freight service was started by P&O to India and the far east in 1841, using the Mediterranean and an overland connection from Alexandria to Suez.
Her maiden voyage in 1866 proved the success of Alfred Holt's design and his Ocean Steamship Company added two sister ships on the same route by the next year.
The distance saving of over 3,000 nautical miles (5,600 km; 3,500 mi) gave a further advantage to steamers, as the canal was not a practical option for sailing vessels.
Unlike sailing ships, which had much lower costs and could afford to wait for the next cargo, steamers needed to be in work, but freight rates had fallen significantly due to overcapacity.
[8]: 124-125 It was intended that shippers would be attracted to conference ships because it gave them a predictable service, without big fluctuations in freight charges.
This was particularly useful for the Ocean Steamship Company, whose ships could fill empty cargo space with extra stops on a homeward voyage.
The split of nationalities was six British, three German, six French, one Austrian, one Japanese, one Danish, one Spanish, two Russian, one Italian and one Dutch.
[4]: 54 An early threat to the conference was from steamers involved in the triangular trade: outward to Australia, a second leg, usually carrying New South Wales coal, to China, then tea back to Britain.
Gellatly expressed the view that whilst this would cost him some thousands of pounds, the conference members' losses would be substantially greater.
[2]: 126–127 [4]: 31 Gellatly's threat was carried out, with Mogul's Pathan and Afghan, together with Aberdeen, loading full cargoes of tea at 25 shillings (£1.25) per ton in June 1885.
The Aberdeen Line ceased to sail to China after 1889 and concentrated on trade to and from Australia, with some added stops in Cape Town.
[2]: 126–127 The decision of England's highest court on the Mogul case gave a legal basis for the conference for more than a hundred years.
A minority report by the Royal Commission suggested that shippers should form associations to collectively represent their position to the conference.
[4]: 47 An investigation into the British shipping industry, the Rochdale Committee of 1970, provided additional confirmation of the operations of the conference.