Early steamships were very inefficient, burning prodigious amounts of coal. This meant they could not be used on long voyages. A further consequence of the inefficiency of early steam engines was that they could not compete with sail for carrying relatively low value cargoes such as coal or iron ore. In fact, right up to the 1850s steam was largely confined to carrying passengers, mail and perishable cargoes such as fresh food or livestock. Many passengers would willingly pay more for the extra speed and certainty of a passage by steam. Governments often subsidised steamship operators who agreed to carry mails. Shippers who wanted to get their cargoes of food, cattle or sheep to market in good condition would also be willing to pay a higher rate for steam shipment.

Sail lingers on

The sailing ship was cheaper to build, being made of wood rather than iron. The wind was free, unlike coal. The steam ship had an additional expense over the sailing ship in that firemen (or stokers) had to be employed to shovel the coal into the furnaces. Because they were more economical to construct and operate, sailing ships remained unchallenged for many years for carrying much of the cargo that went by sea, and for which there was no premium for speedy delivery. For instance, coal or stone did not deteriorate, however long the voyage. In addition, these commodities were usually cheap enough to be stockpiled by the user against the possibility – very common in winter – when deliveries by sailing ship were held up by contrary winds or bad weather.