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Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
@mercoglianos
Aug 6, 2021 • 6 tweets • 4 min read • Read on X
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1/It’s Time For A National Maritime Strategy

I would add just a few comments to the article posted by @HudsonInstitute

breakingdefense.com/2021/08/its-ti…
2/One has to go back to 1920 when the nation had a comprehensive National Maritime Strategy with the passage of the Merchant Marine Act, known as the #JonesAct
3/The Chinese Belt and Road Initiative includes a maritime component to ensure the adequate supply of raw materials and export of goods. China had developed multiple sea routes and land corridors, while also building the largest commercial merchant fleet & shipyards in the world.
4/The US needs a Maritime Strategy that will generate cargo for carriers, encourage shippers to use US-flag vessels, create incentives for finance, and lower or offset construction & operational costs to compete against low wage foreign companies & subsidized shipyards.
5/To increase the international & domestic fleet, the US needs to resurrect the build-and-chartee program that will provide ship construction & new vessels. Expanding MSP is the quickest way to grow the fleet, and a ship lease program can provide an active ready #sealift force.
6/While it is great to have advocates in government, there is still no administrator for @DOTMARAD. Additionally the divided function of MARAD & the @FMC_gov need to be reintegrated to provide a sub-cabinet post for Maritime Affairs under @SecretaryPete.

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More from @mercoglianos

Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Nov 7
1️⃣ Shipbuilding & Finance

The US builds 0.1% of the world's ships; China 51.0%.

The issues are not just economy of scale, but how the nation supports the sector in terms of corporation taxes, availability of financing, and depreciation of ships.

Shipbuilding is critical not just for the commercial sector but also the military; in terms of construction and repairs.Image
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2️⃣ International Freight

The only US-flag ships in international trade are receiving a stipend through the Maritime and Tanker Security Programs, along with military charters under US Transportation Command.

Most of these ships are owned by foreign companies with US subsidiaries, i.e. Maersk Lines, Limited, APL, or Hapag. Part of the building program should target to replace the foreign-built ships with US-built vessels.

The US can establish a tax discount program for Shippers that allows them to move cargo on US ships and earn tax discounts/rebates.

There also needs to be work with the Dept of Defense to provide priority escort to US ships in contested regions such as the Red Sea with the US covering war risk to incentive shipping on US flag ships.
3️⃣Coastal Shipping

Current law requires US-built, crewed, flagged, and owned (which is more restricted than trucks, rail, and air; but they still possess cabotage provisions).

There should be programs to promote short-sea shipping akin to the James River/I64 barge program.

However, the greatest hindrance to coastal shipping is the need to double-handle cargo in ports and the low cost of trucking vice shipping. What has historically undercut coastal shipping was the development of the Interstate highway and pipelines.

In some areas, we need to alleviate restrictions, such as a waiver to reflag LNG tankers into the fleet until domestic ships can be built.

A program needs to be developed to replace the aged Great Lakes fleet, the coastal tanker fleet, and ferry replacements (the Washington State system is in dire need).

Also, we need to see the application of infrastructure funds to improve the Mississippi system to make it more robust from seasonal issues (this is the 3rd year in a row that low water is hindering export of grain).
Read 6 tweets
Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Oct 2
1/Day 2 of the #PortStrike and a bit of background.

There is a lot of focus on the #ILA & their colorful president, but the issue of port efficiency is at the heart of the matter.

Moving containers through the terminals is key and a main point of the US Maritime Alliance. Image
2/The US Maritime Alliance (#USMX) consists of port associations, direct employers & shipping lines. The majority of the Board are foreign: Evergreen (Taiwan), ONE (Japan), CMA CGM (France), HAPAG (Germany), MSC (Switzerland), Maersk (Denmark), USA Ports (Canada) & COSCO (China).
Image
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3/The efficiency of US ports is not high.

The Container Port Performance Index rates 405 world ports. The 3 largest on the US East/Gulf Coasts are:

#99 @PortNYNJ
#327 @Port_Houston
#398 @GaPorts (Savannah) Image
Read 13 tweets
Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Aug 29
1/The latest video release by the #Houthis is just amazing.

This was filmed after the large three explosions set off at night, as indicated by the fires on deck, and the recent photos by @EUNAVFORASPIDES as the bridge is still intact in this video. Image
2/This was the original video shown by the #Houthis and has three large explosions on deck.

It is believed that they removed some of the manhole covers on the main deck to start the fires off the cargo tanks.
3/This image from the new video shows the ship on fire via those ports.

Not the extent of damage is not as extensive as we see in the later @EUNAVFOR photos and the bridge is intact.

Image
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Read 10 tweets
Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Aug 25
1/The latest report that @USNavy @MSCSealift should not be a surprise. This is an issue 40 years in the making.

Navy to sideline 17 vessels due to manpower shortage, operating crews will be redistributed: report

#FoxNewsfoxnews.com/us/navy-sideli…
2/Back in 2019, I penned a piece for @USNIProceedings @USNavyCNO History Essay Contest that asked the question... Image
3/The reduction in the US merchant marine has been an epic decline from the #1 fleet in the world after the Second World to #21 today.

There are a host of factors but on this specific issue, there are a few that standout.

Read 19 tweets
Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Jul 19
1/It is time to discuss a Tale of Two Carriers, @usnavy @CENTCOM Edition.

The @DeptofDefense just showcased the return of the @TheCVN69 strike group and the award of the Combat Action Ribbon to the ships (although they omitted the ships of the @MSCSealift.) Image
2/At the time of the #Houthi attacks on shipping, USS Ford Carrier Strike Group was in Med and IKE was in the Persian Gulf, with the destroyer USS Carney making its dramatic appearance by shooting down missiles and drones heading to Israel.

3/With the #Houthi seizure of MV Galaxy Leader (they still hold the ship and crew hostage), @CMF_Bahrain allocated reinforcements to plus up CTF 153 in the Red Sea and initiated Operation Prosperity Guardian.

combinedmaritimeforces.com/ctf-153-red-se…
Read 25 tweets
Sal Mercogliano (WGOW Shipping) 🚢⚓🐪🚒🏴‍☠️ Profile picture
Jul 13
1/I have been receiving a great deal of info on the #GazaPier and this is what I have been able to put together

1️⃣Weather was a major factor. A Sea State 5 storm necessitated the crews to evacuate to Benavidez and locally hired tugs. The offshore pier broke loose.
It took 5 hours to chase down the RRDF platform after it drifted 2 miles off.

2️⃣ Much of the equipment had not been fixed or refurbished from Exercise Talisman Saber 23. There was a dry run before the execution of Gaza and took 3 days. The test found deficiencies in the LSVs.
3️⃣ Most of the NCOs had little hands-on experience with the system beyond ops to resupply McMurdo Station since the cutback in the Army Watercraft program. Additionally, the Army Causeway Company lacks Warrant Officers. Many mid & junior officers lack similar knowledge.
Read 7 tweets

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