Yet more evidence that our current Administration cares nothing for US workers

May I express my sincere thanks for the many US enginebuilders and yard workers who will benefit from this decision…

[B]Horizon Lines to Repower Ships Overseas [/B]

June 19, 2013
By MarEx

Horizon Lines gets U.S. Coast Guard approval to repower the Horizon Spirit and Horizon Reliance from steam-powered to LNG and diesel propulsion in a foreign shipyard without losing its Jones Act status.

See the official approval letter from the USCG here.

The ships were originally built at Avondale in 1980 as LASH (lighter aboard ships) carriers, but were later converted into container vessels. USCG advised Horizon based on its description of work required to complete the conversion, the ships will remain qualified to operate as U.S. flag in Jones Act trade.

This is just a preliminary determination. Horizon Lines has not made any official announcements.

SOME FUCKING GOOBERMENT WE’S GOTS US HERE! Can it get any worse?

Unbelievable! You can not tell me that this work could not be completed in a U.S. Yard.

The fact that the U.S.C.G. is allowing this to take place is a joke.

Once these conversions are completed all anyone will talk about is how environmentally friendly this company is, never mind the screwing given to all of the Shipyards in this country!

[QUOTE=c.captain;112935]May I express my sincere thanks for the many US enginebuilders and yard workers who will benefit from this decision…

SOME FUCKING GOOBERMENT WE’S GOTS US HERE! Can it get any worse?[/QUOTE]

There must be an admiral near retirement and Shell isn’t hiring.

Time to get busy with the snail mail to the crooks in congress. Not that it will do any good since they probaby got a piece of that action as well but at least they will know a few dozen people are watching.

Yeah, we can count on it getting a lot worse.

What about the unions that man these vessels and the truck drivers who haul the loads or stevedores? They should make a very loud and clear statement that they will not accept this BULLSHIT one little bit!

My article is so much better

Horizon Lines Seeking Foreign Yard for Dual Fuel Conversions

Horizon Lines is in the preliminary stages of converting two of its Jones Act-qualified, steam-powered containerships to the use of dual fuel… at a foreign shipyard!

Tim Colton over at Colton Company on Wednesday obtained a preliminary determination from the U.S. Coast Guard that grants Horizon Lines permission to hire a foreign shipyard for the convertion two of the company’s 33-year-old LASH ships, Horizon Reliance and Horizon Spirit, from steam propulsion to dual-fuel LNG/diesel propulsion.

So how can Jones Act-qualified vessels undergo such a major conversion and still be eligible under the Jones Act?

You see, 46 C.F.R. § 67.177 establishes a two-part test to determine if a vessel is “rebuilt foreign”, or not.

The first test, known as “major component test”, looks to determine if “a major component of the hull or superstructure not built in the United States is added to the vessel”. The second test, known as the “considerable part test”, looks determine if “work performed on its hull or superstructure constitutes 7.5 percent or less of the vessel’s steelweight prior to the work,” in the case of vessels made of steel. If the work done on a vessel fails on one or both of these tests, the vessel is deemed “rebuilt foreign” and therefor ineligible for U.S. coastwise trade.

In May, Horizon Lines sent a letter to the U.S. Coast Guard requesting a “Preliminary foreign rebuild determination”, for the work which is to be carried out. In their response, the Coast Guard states:

[I][Horizon Lines’] letter and its enclosures have provided extensive detail, including narrative descriptions, architectural drawings and weight calculations, concerning the work proposed to be done. In short, however, Horizon intends to replace the Vessels’ steam propulsion and auxiliary plants with geared medium speed diesel dual (LNG and liquid) fuel engine plants in order, as stated in your submission, to improve the fuel efficiency and environmental performance of the Vessels.[/I]

And after going into lengthy details about the results of the aforementioned tests, the letter concludes:

[I]For these reasons we conclude, and confirm, that performance of the work as described to the Vessels outside of the United States will not result in either Vessel being deemed to have been rebuilt foreign and, consequently, will not adversely affect either Vessels’ eligibility to engage in the coastwise trades of the United States.[/I]

So there you have it… You can read the full letter HERE.

And this came out yesterday too

MARAD: U.S. Shipbuilding and Repair Industry is $36 Billion Important

U.S. shipyards in 2011 directly and indirectly contributed $36 billion in gross domestic product to the U.S. economy, according to a report released today by the U.S. Department of Transportation’s Maritime Administration (MARAD) on the U.S. shipbuilding and repair industry.

Paul “Chip” Jaenichen, who has been Acting Maritime Administrator since David Matsuda stepped down, shared the findings of the report, titled [I]The Economic Importance of the U.S. Shipbuilding and Repairing Industry[/I], at the FuturePorts Annual Conference in Long Beach, California. The purpose of the report was to quantify the economic importance of the U.S. private shipbuilding and repair industry in 2011, in terms of employment, labor income, and GDP.

“Shipyards create quality jobs and support economic growth far beyond our nation’s ports and waterways,” said U.S. Transportation Secretary Ray LaHood. “This report shows that wherever you live across the country, Americans benefit from opportunities generated by the shipbuilding and repair industry.”

The report found that there are currently 117 shipyards in the United States, spread across 26 states, that are classified as active shipbuilders. There are also more than 200 shipyards engaged in ship repairs or capable of building ships but not actively engaged in shipbuilding, the report showed.

In 2011, the more than 300 shipyards directly provided more than 107,000 jobs, $7.9 billion in labor income to the national economy and contributed $9.8 billion in Gross Domestic Product (GDP), the report shows. In addition, the average income for these jobs ($73,000) is 45 percent higher than the national average. On a nationwide basis, including direct, indirect, and induced impacts, the industry supported 402,010 jobs, $23.9 billion of labor income, and $36 billion in GDP, the report says.

In 2011, the U.S had a GDP of $14,991 billion, according to data from the World Bank.

The report notes that although most shipbuilders are located in coastal areas, the direct and indirect economic benefits reach all 50 states. The state with the most private sector employment is Virginia with 26,730 jobs, followed by Louisiana and Mississippi with 12,970 and 10,100, respectively.

The report notes the U.S. shipbuilding industry has run a trade surplus in six out of the last ten years, with a cumulative trade surplus of $410 million over this period. The report also shows that from 2010 to 2012, deliveries of vessels of all types, including tugs and towboats, passenger vessels, commercial and fishing vessels, and oceangoing and inland barges, exceeded 1,200 vessels per year, reaching 1,457 vessels in 2011.

Let’s just hope this is all considered good.

[B]Download: [I]The Economic Importance of the U.S. Shipbuilding and Repairing Industry[/I][/B]

[QUOTE=Mikey;112962]My article is so much better[/QUOTE]

You’re right Mike…your piece is better. Sorry I missed it.

Now, how the hell to protest this BLATANT BACKSTABBING BRAZEN BULLSHIT?

“The first test, known as “major component test”, looks to determine if “a major component of the hull or superstructure not built in the United States is added to the vessel”. The second test, known as the “considerable part test”, looks determine if “work performed on its hull or superstructure constitutes 7.5 percent or less of the vessel’s steelweight prior to the work,” in the case of vessels made of steel. If the work done on a vessel fails on one or both of these tests, the vessel is deemed “rebuilt foreign” and therefor ineligible for U.S. coastwise trade.”

-I call total BS on the USCGs determination. They’re replacing a friggin POWERPLANT. It should certainly count as a Major component. Or at least a major part. When that was written power plants were considerably heavier than the same power engine today. So it certainly violates the intent of the law.

  • If the USCG was looking out for the people they could’ve denied it and let horizon bring it to a judge to make a determination.

[QUOTE=LI_Domer;112983] If the USCG was looking out for the people they could’ve denied it and let horizon bring it to a judge to make a determination.[/QUOTE]

What a quaint concept … “If the USCG was looking out for the people …” kind of takes me back to Norman Rockwell’s America.

As for as a union raising a fuss about it, that’s a joke. I used to believe my union looked out for its members but after watching “leader” after leader succumb to the disease that infects the parasites who live and work in DC, I have lost all confidence that there is a hope in Hell for the American worker.

All you have to do is look at a union newspaper or magazine, it is filled with photos of “leaders” posing with a parasite at some political shakedown where your dues are converted to what the moron thinks is a step up his personal social ladder among the more senior parasites. He would never dream of saying something that might offend one of the parasites enough to be removed from the guest list and no longer invited to donate your money and have his picture taken.

The parasites who control the CG, and the corporations that tell the parasites and admirals what steps they will dance, don’t have to worry about the unions any more, they have managed to convince most of America that allowing a wage earner to have a voice in his own future is a threat to the nation. They have made damn sure that the voice of the people will never be a threat to their own fortunes. When is the last time you saw a photo of a union leader being lead away in handcuffs after tossing a brick through the window of a mansion or a parasite’s limousine? We will never see that again, a union leader who has the balls to actually stand up and do something will be labeled a terrorist and put out of business pretty damn quick.

The shipyard workers who get laid off because of this treachery will be labeled as scum for taking unemployment and worthless because their families will end up on welfare. Just another generation of welfare bums, it’s their own fault for not being born near a Korean or Chinese shipyard. What used to be thought of as protected domestic industrial work has been defined down to make sure that admirals get retirement jobs, Daddy Warbucks gets a bit fatter, and the political parasites suck a bit more off what is left of a failing society.

How do we protest? I am afraid there are not enough of us to do a damn thing. We don’t have the force of dollars to bribe parasites or the balls to go against the police state to tear down the structure that allows the parasites, the admirals, and the corporations to destroy what your father and his father believed they fought to defend.

Damn sad, the Unions that supported this administration are even shaking their heads. I would say write your congressman but they can’t get basic things done let alone something as big as the Jones act.

You know, I am kind of amazed since there are 3 x built since 2000 containerships sitting idle less than a mile from my house, and a bunch more over at Bremerhaven. Probably get 'em for a song.

Why bother investing in 30 year old junk at all? Do the numbers really work? Is shipbuilding in the US that non-competitive, or guvermmint policy on the Jones Act so unsure that no one will build a new US flag ship ? Come on. … think about who is calling for Jones Act repeal.

[QUOTE=+A465B;113033]You know, I am kind of amazed since there are 3 x built since 2000 containerships sitting idle less than a mile from my house, and a bunch more over at Bremerhaven. Probably get 'em for a song.

Why bother investing in 30 year old junk at all? Do the numbers really work? Is shipbuilding in the US that non-competitive, or guvermmint policy on the Jones Act so unsure that no one will build a new US flag ship ? Come on. … think about who is calling for Jones Act repeal.[/QUOTE]

Well, I can see a program that would allow under certain circumstances a waiver on the US build requirement but only if an equivalent US vessel were built to replace them. However, knowing how companies abuse waivers and how the USCG gives away the store, I fear any scheme would become badly circumvented and if we give away the US build requirement will not the US flag and manning be far behind? Look at how the law is ignored in the GoM to see how all this happens right in front of our own faces!

Huge structures do crumble and collapse once small cracks appear in their foundations.

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[QUOTE=+A465B;113033]
Why bother investing in 30 year old junk…?[/QUOTE]

Because ships built in the USA 30 years or more ago are not junk.

How many Asian or European built ships from the 1980s are still competing on the world market? They get scrapped as soon as the warranty expires.

[QUOTE=Steamer;113039]Because ships built in the USA 30 years or more ago are not junk.

How many Asian or European built ships from the 1980s are still competing on the world market? They get scrapped as soon as the warranty expires.[/QUOTE]

You’re correct that a well maintained old hull is a worthy candidate for repowering but does Horizon do any hull maintenance above the minimum required by class? If these hulls are in good shape then repower, but I still say that doing this in China is CRIMINAL! I hope the Shipbuilder’s Council of America and Horizon’s competitors sue in Federal Court as they did when Matson went to China to have the Lurline rebuilt.

this is what Tim Colton had to say…

Horizon Goes to Asian Shipyards, Again

The Coast Guard has given Horizon Lines permission to rebuild the 33-year-old converted LASH ships Horizon Reliance and Horizon Spirit in a foreign shipyard. Read their letter here. Yes, this is the same Horizon Lines that last year claimed to be “[U]a very staunch supporter of the Jones Act and all its requirements[/U].” Read that announcement here. [B][U]Hypocrites. [/U][/B] June 18, 2013.

Good on ya sir!

He pulls no punches and I always enjoy it. I agree that this is pure fucking bullshit. they are hoping the tree hugging aspect will glaze over enough eyes that no talking head who might remotely give a shit will say anything.

[QUOTE=Traitor Yankee;113072]He pulls no punches and I always enjoy it. [/QUOTE]

I consider Tim Colton a mentor and a man I aspire to be someday…a damned good egg!

Mr. Colton’s websites are impressive. I’ve been looking at them for years. What a wealth of knowledge.

[QUOTE=Signal Red;113015]Damn sad, the Unions that supported this administration are even shaking their heads. I would say write your congressman but they can’t get basic things done let alone something as big as the Jones act.[/QUOTE]

Red, you took the words right off my keyboard. The unions pushed their membership to vote for this assclown administration because they are “friends of labor”. Just not American labor.

[QUOTE=seadog6608;113179]Red, you took the words right off my keyboard. The unions pushed their membership to vote for this assclown administration because they are “friends of labor”. Just not American labor.[/QUOTE]

I’m a goddamned Democrat and I am sickened to my stomach over how this Administration just continues to give away the store and shove a great fid up the ass of us Americans! This one is one step too far but how to tell the USCG that we don’t accept their decision? That has to be done in Federal Court and I am praying that a suit is filed over this by some concerned party be it union or shipyard or enginebuilder or all together!

The sad reality though is that is Romney or McCain were president right now the same waiver would have been given! That is something everyone should bear in mind here!

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