Ah John - you do great work. As one of the few public figures for the industry, you put yourself out there, naturally subjecting you to memes and trolling. It’s just how the world is these days.
It always will come back to the Jone’s Act, because in this country, it is both the bedrock and the crutch of the domestic industry. Nothing can be addressed without referencing it.
As with any commercial sector, there are a multitude of angles and datasets from which to approach problems and analyze. In this case, bias is amplified because the industry is political.
I don’t think referencing Matson’s stock price is a sound position, as it’s Price:Earning ratio is about 20… which is on the low end of average for the markets right now. Indeed, the price has skyrocketed recently, and that has it rated at the highest end of Overvalued… but I’d rather not act like we truly understand the current stock market, I’d write it off as euphoria.
CATO has clearly positioned itself on the opposite side of the table politically. Their tactics are brash and fail to reach our demographic with grace - but they have numbers. We can choose our opinions, but not our own facts.
We ALL know, that the US Merchant Marine is in a state of decay. It’s troubled me considerably, and I’ve sought to understand why. You cite that Kings Point should receive funding for technology R&D - I would love to see that. But our Academies are run as trade schools, not innovative institutes. Because these schools receive federal funding proportional to the numbers of students in the unlimited program, it would take an act of congress to re-aim the trajectory.
When it comes down to it, the industry is commercial & driven by the demands of an economy based on cost, supply and demand. Preserving the fleet in the name of national defense is incredibly important, but the way it’s been done for the past one hundred years has inadvertently caused the US Merchant Marine to lose sound footing when compared to the EU or other countries.
The reality is, that the Jones Act, which truly dictates the behavior of the industry was written in 1920… thats 39 years before the first Interstate Highway, long before global adoption of cheap distillate fuels for road vehicles, hydraulics, synthetic line, welding, cheap steel production… and not to mention automated technologies which now minimize manning requirements for Engineering and aboard the Bridge.
And now of course there’s autonomous technologies, which the US Navy has begun experimenting with to offset the deficit and costs of MSC.
The big problem I see, is that it comes down to one of two options… either the US Merchant Marine needs saving by a massive amount of funding from the Government… essentially “socialist” intervention. Or the laws that protect and incentive domestic stagnation need to be updated.
Not to sound cliché… but look at Puerto Rico… 39% of their energy comes from Natural Gas… despite the fact that the US is one of the worlds largest producers of it, the territory purchases its gas from Russia. … to me, that is insane - but they do that because its simply too expensive to ship it via the Jones Act. Why is that??
I am in no way in favor of the CATO “repeal the Jones Act” game, but you cannot deny that something is terribly wrong with our situation.
That said, I think our OP here, Meme.Lord, has a real point. We desperately need an update, and I think you agree - to modernize, to reexamine what we have and how we do it. Otherwise, things will just get worse without a massive amount of money from the government (which will probably just go to shareholders and CEO’s). At the most basic level… we need look no further than our northern neighbor, Canada.
Canada has a similar protectionist maritime law to ours… the big difference, is that they have updated it from time to time. Where the JA only allows foreign waivers for “National Defense”, Canada’s coasting trade law allows exceptions for economic needs… when there is a demand but there is no domestic solution. Essentially, licenses are granted to foreign vessels for just ONE year on an auction basis… as soon as a domestic operator is ready for the job, it’s theirs. See: coasting trade licence… but in the US we just can’t do it… so instead of allowing someone else to hash out a solution until we can do it, a trucking company shows up and dominates… or it gets outsourced entirely to international shipping from say… Russia.
Anyway - regardless of which side of the fence your on, this is a very real and costly problem. Costly in terms of bottom line dollars & costly in terms of the survival of our own Merchant Marine… I’m not even going to get into environmental issues. Ultimately… I believe the solution is somewhere in-between. Not to speak blasphemy, but I’ve read the arguments, and my interpretation is that CATO doesn’t necessarily want to “overturn” the Jones Act, they’re just playing the political chessboard. There is plenty they don’t understand… but the numbers are the same ones that business looks at. The same numbers that the US Navy looks at. & those are the same numbers that have been giving trucking and foreign flags the advantage.
At some point… and I hope soon, we all need to sit down and learn from each other. This is a battle of culture and numbers, that if not addressed correctly will eat away everything in-between… and technology will make or break the entire sector.
Keep at it John. Don’t let the trolls get you down. But this OP is hardly a run-of-the-mill troll. This guy is a thinker. I give him credit where credit is due.