From McCain’s recent speech:
[I]“Just recently, U.S. container-line Matson placed a $418 million order for two 3,600 twenty-foot equivalent unit (T.E.U.) containerships in a U.S. shipyard. The high price of $209 million per vessel reflects that the ships will be carrying goods within the U.S. and, therefore, governed by the protectionist Jones Act.
“The fact is that Matson’s order at $209 million per ship is more than five times more expensive than those same ships were procured outside the United States. Ships of that size built outside the U.S. would cost closer to $40 million each. For comparison, even Maersk Line’s far larger 18,270 T.E.U. ships cost millions less, at an average of $185 million apiece.
“Further, the U.S. Maritime Administration (MARAD) has found that the cost to operate U.S. flag vessels – at $22,000 per day – is about 2.7 times higher than foreign-flag vessels – just $6,000 per day. A significant factor in these increased costs is obviously the Jones Act."[/I]
On the cost of ships: The Costa Concordia cost just under $500,000,000 to build, in Italy. The Queen Mary II cost about $690,000,0000 to build in France. Neither of those countries are cheap countries to operate in. Due to amenities, the cost of a giant cruise ship is absurdly more expensive than a container ship. There’s something REALLY wrong when Europe can build for far less than the US.
I don’t know what causes such a wide differential. I’m guessing it’s due, not to one or two things, but to hundreds of little things that add up to create one big mess.
The same thing goes on operating costs. I don’t think that Danes or Norwegians would make that much less than Americans. Again, I’m guessing that it’s due to lots and lots of little things adding up to one big mess.
Of course, the US doesn’t look at what those foreign countries are doing right and make an attempt to emulate them. Instead, the US just piles on more and more regulations and costs and then blames “fate”. Unless the US takes steps to put ourselves on an equal playing field with other countries, we’re heading down the tubes.