1/Matson Returns to Philly Shipyard for Three More Jones Act Containerships
Before @CatoInstitute
& @cpgrabow can comment, let me say $1 Billion for three 3600TEU ships is expensive. At least twice the going $150M price overseas.
The question is why?
gcaptain.com/matson-returns…
Before @CatoInstitute
& @cpgrabow can comment, let me say $1 Billion for three 3600TEU ships is expensive. At least twice the going $150M price overseas.
The question is why?
gcaptain.com/matson-returns…
2/The sunk cost for any containership is largely due to its engines, design, fabrication and its steel. Obviously bigger ships need more of the latter, but all ocean-going ships face similar issues.
In the case of these they are smaller due to the demand envisioned by Matson.
In the case of these they are smaller due to the demand envisioned by Matson.
3/Even though these ships are based on the earlier Aloha class they will feature LNG fuel which adds to the costs in order to meet IMO and potential California emission laws.
Okay...so why are these ships still costing $1/3 Billion a piece.
Okay...so why are these ships still costing $1/3 Billion a piece.
4/The answer is not just that the US is more expensive to build in. It is because economy of scale and how nations overseas finance & support shipbuilding.
China (40%), Japan (22%) and Korea (31%) build 93% of the world's ships.
The US only 0.2%.
China (40%), Japan (22%) and Korea (31%) build 93% of the world's ships.
The US only 0.2%.
5/When you build two ships in 2018 & 2019, and then three, this is not the prefabricated model in China, Korea or Japan.
Add to it, many of these countries provide massive amount of aid to the shipyards and shipping firms - look at COSCO 🇨🇳 & HMM 🇰🇷.
maritime-executive.com/article/south-…
Add to it, many of these countries provide massive amount of aid to the shipyards and shipping firms - look at COSCO 🇨🇳 & HMM 🇰🇷.
maritime-executive.com/article/south-…
6/Between 2010 and 2018, China provided over $132 Billion in subsidies to its shipyards.
@DOTMARAD, under Title XI of the MMA 1936, provided loans of $77 Million ($0.077B). Not exactly level and makes one question the real cost of their vessels.
csis.org/analysis/hidde…
@DOTMARAD, under Title XI of the MMA 1936, provided loans of $77 Million ($0.077B). Not exactly level and makes one question the real cost of their vessels.
csis.org/analysis/hidde…
7/Korea provides aid to its yards and sees its competition between them, China and Japan as akin to the naval arms race of the early 20th century.
Japan has allowed their shipyards to own some or parts of the ships they build to ensure revenue stream.
…list.maritimeintelligence.informa.com/LL1138145/Sout…
Japan has allowed their shipyards to own some or parts of the ships they build to ensure revenue stream.
…list.maritimeintelligence.informa.com/LL1138145/Sout…
8/Suffice it to say there will be a LOT of screaming about the #JonesAct and how expensive ships are to build in the US.
In truth, the policies that have shifted shipbuilding overseas will not come back cheaply, but the first steps are to start building ships in the US, AGAIN!
In truth, the policies that have shifted shipbuilding overseas will not come back cheaply, but the first steps are to start building ships in the US, AGAIN!
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