Easy, we just need 20 - 30 more US shipping companies willing to pay 4 - 5 times the market price of tonnage, which all that takes is shippers willing to pay increased in freight rates, which all it takes is consumers willing to pay higher prices. Or we could cut out all the middle men and just have taxpayers support these additional 17-27 yards directly, put it in the DOD budget if it is to support defense, and let congress support it or not.
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A more serious take - The core question to me on this issue is why do we need a US build requirement. If the issue is there is a strategic defense need for US shipbuilding, then that is how it should be debated and funded. Like any other DOD requirement, make it a direct subsidy - voted on in the DOD budget by congress, and make it conscious political decision.
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too funny !! too true !!
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Yep. There you go. Fuck Americans as long as your corporate masters make more profit.
Can’t wait until the Cato Institute is outsourced! Surely someone in India can do your job for 1/10th of whatever you’re bending over the Cato institute for.
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No. We don’t need more shipping companies paying 5 times as much as they should be for ships.
We need to reintroduce large scale efficient and competitive US shipbuilding at rates comparable to Western Europe. And the necessary supporting infrastructure and supply chains. That can build military and commercial ships.
If we cannot do that, we should stop building new navy ships which are obsolete anyway in the age of long range missiles. And we should give up the US build requirement for commercial ships over 10,000 tons.
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we are in violent agreement ! One could make a strong case that the protective nature of the JA took the incentive away from US yards to be able to compete with european yards. Lack of competition does not breed inovation.
I think what really happened is that:
US Government grossly overpays for military vessels wrongly thinking that that supports commercial shipyard s.
Western Europe heavily subsidized shipbuilding for a long time, and maritime clusters of supply chain. The direct subsidies have been withdrawn and European shipbuilding has also declined. They still have critical mass of yards and supply chain They have indirect subsidies, like free national healthcare and skilled trades training programs.They are also able to build hulls and modules in Eastern Europe and Asia, and use contractors with much cheaper Eastern European labor. The VAT tax refund on exports also gives Western Europe an advantage.
The real reason that the US cannot compete with Western Europe in shipbuilding, is the total lack of any will to do so.
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Yes, long range missiles and the ability to track ships, war planes, drones and rockets in flight, is now something available to others, not only US.
That makes not only naval ships obsolete, but also the ships that supports them.
All this talk of building a fleet of ships to carry supplies to support the troops in a far away “theater of war” may not be relevant in any future war between major powers.
It is nearly “free” to the consumers, but paid for by all through taxes.
The idea is free for any country to copy.
There is nothing stopping US yards from doing the same (except US Laws, that is)
HLVs to transport the modules or hulls are available on the market for any takers.
VAT is added on for domestic consumption only, thus doesn’t affect export prices.
It does work against local producers, since the “retail price” gets higher for local consumers.
What really affects cost of shipbuilding and ships equipment is the finance arrangements and Gov. supports, which is regulated and limited by OECD Agreement:
https://www.oecd.org/sti/ind/shipbuildingagreement-overview.htm
I just read that Seacor is selling their Seabulk towing division to two competitors.
I wonder if their employees will remain with AMO or have to go non union?
From yesterdays AMO Newsletter email
“Based on our discussion with E.N. Bisso & Son, Inc., AMO’s contracts will be honored and the company is seeking to maintain the status quo in vessel operations. Both the union and the company expect a smooth transition without a negative impact on AMO members working aboard the vessels purchased by E.N. Bisso & Son, Inc. and we are looking forward to working together, said AMO National Vice President, Inland Waters, Danny Robichaux”
Stupid question. Are any of the other Bisso vessels union manned?
Add on stupid question. Is Bay Houston owned by Bisso or a separate company and how do they feel about union affiliation?
I’m under the impression that most of the larger Houston based ship assist tug companies are SIU Inland, but I don’t really know.
Nothing new about a tug company having union and non-union divisions, or having different unions in different divisions.
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It’s somehow a part of G&H, but I’m not exactly clear on who owns who.
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Oh, yeah. Crowley is that way, except for the non-union part. . . they have different unions depending on the location and types of vessels.
Yeah, I forget exactly how it is set up, but Bay Houston, Suderman and Young, and G&H are connected. At one time, I had my ABS trailer located in the G&H yard on Pelican Island. They manage the Bay Houston and S&Y tugs. They used to have their own boats, too. Mostly the old boats from the other companies. Not sure if they still do. And yeah, they are SIU.
“US-built ships are currently 4-5x the world price.”
I have no intention for this question to sound snark-illy, but isn’t half of the 4-5x mostly labor cost.
Yes, but it’s not because Americans get paid more. It’s because our shipyards are highly inefficient and require significantly more man hours to do the same job.
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Three months ago, I watched a piece on CBS Morning News about the offshore wind service operations vessel Chouest is building at their LA Ship facility. (I was familiar with the yard back when I did some work for Shell) It was a news piece showcasing “American Innovation”. What got me was the amount of stick welding being done. In my new construction time in Korea, it was basically all wire feed.
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Oh, I agree with your highly inefficient statement, whole-heartedly. I would wager most of that inefficiency is due to government regulation and union rules. According to INDEED.com, the average wage for a welder is over 21 USD/ hour, with a range from 15 to 30 USD/hour. I’m having trouble correlating that with what a welder in China, South Korea, or the Philippines would make, and that is but one example World War II manufacturing wasn’t bound by an avalanche of paperwork designed to keep the GS 9-11’s busy, so a measure of weeks to years is appropriate enough for what I term as an obstructionist government.
Sorry for the rant, but in my defense, I was left unsupervised…
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