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.
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.

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. 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).

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. 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.

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...

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.) 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.

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.

https://twitter.com/gCaptain/status/1811500838386389177

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.

1/The latest is that a portion of the Trident pier - the section that is grounded in #Gaza - broke loose while being towed to Israel due to high sea states.

https://x.com/clashreport/status/1795146849772351576?t=1Ci_urZOyC7pKDA4FfoBsw&s=19

https://twitter.com/mercoglianos/status/1794498022199759088

2/ As I discussed in my video yesterday, if the US wanted to deliver aid to Gaza The best way to accomplish this 3was to use existing ports in Israel and Egypt and ship it overland into Gaza.

The least efficient is airdrops and then over the shore.

1/So, let's talk about the #GazaPier.

The @DeptofDefense has set the parameters for the op.
1️⃣ No boots on the ground
2️⃣ An unannounced level of aid over the shore.

Joint Logisitics Over The Shore (JLOTS) is designed to support military operations for a finite period of time.

https://twitter.com/TreyYingst/status/1794365082161569911

2/To conduct this op, @DeptofDefense activated a total of 11 vessels.

4 vessels activated from @DOTMARAD & @MSCSealift: USNS Benavidez, Lopez, Bobo (which suffered an engine fire & returned) & Stockham

1 chartered: MV Sagamore

3 Army LSVs & 3 Army LCUs

Plus pier & lighterage

1/The @Heritage has released Project 2025 which is entitled Mandate for Leadership: The Conservative Promise. Basically it would be the next Trump administration policy guide. In it is a section on Maritime Policy (p.637-638). Let's take a moment and digest it. 2/A little short on history as MARAD came from the US Shipping Board created in 1916 and then via the US Maritime Commission.

What is also omitted is that MARAD was originally under the Commerce Dept and included @FMC_gov it is purview.

1/The latest on the #GazaPier.

A temporary jetty was constructed from concrete and landfill to extend out from the shore.

It was done under the supervision of the IDF. 2/The Spanish-flagged tug Echo 1 Open Arms delivered the barge of 200 tons of food from @WCKitchen via Cyprus.

Due to the shallow draft off the jetty the tug could not push the barge alongside.

This is why the US Army Trident pier will extend approximately 1800 feet out.

1/So the winner is the least efficient means possible to move cargo.

1,000 soldiers of @USArmy 7th Transportation Group will construct either an elevated or floating causeway pier.

https://twitter.com/mercoglianos/status/1766181775821197388

2/According to the @DeptofDefense spokesperson it will take two weeks to construct.

Okay...but where are the causeways?

They are either in Virginia or onboard prepositioning ships at Diego Garcia or in the western Pacific.

These will need to be shipped and this takes time?

1/ Why is the concept of a #Gaza #pier not a viable option?

First, Gaza is a flat strip of coast with no protected harbors or coves. Thus means that any 'pier' would be completely open to the elements and seas.

Second, there are two ports just a few miles away.

https://twitter.com/cspan/status/1765943705666814418

2/Ashdod in Israel is a large port and could handle the cargo, but it would require transport and delivery through Israeli territory.

1/A quick snapshot of all containerships over 16,000 TEUs (or Ultra Large Container Vessels). You can see that they are used exclusively between Europe & Asia as US ports cannot accommodate them, either due to water/air draft or crane capacity.

2/Only a few ports can handle them - Tangier in Africa; Algeciras, Genoa, Piraeus, Istanbul, Port Said & Gioia Tauro in the Med; Hamburg, Bremerhaven, Rotterdam, Antwerp, Felixstowe & Antwerp in Northern Europe & in Asia, multiple ports in China, Singapore, Columbo & Khalifa.

1/MT Marlin Luanda, a 110,000 deadweight ton tanker and owned by a company in the Marshall-Is and flagged in the same, sailed from Greece after loading a cargo of Russian naphtha from tankers via the Black Sea.

The cargo was not sanctioned and sold under the price cap.



2/The ship identified its destination as Singapore but that was probably not its final one.

Over the past year, it has operated over an extensive area, typical of Suezmax/LR2 tanker.

1/The turning around of the US-flagged containerships MV Maersk Detroit and Maersk Chesapeake should be a warning sign for the @DeptofDefense.

This indicates that even ships with the 🇺🇸 flag can be thwarted by the #Houthi. 2/For context, the US has been able to run vessels through the contested seas of the #RedSea, #BabelMandeb, and #GulfofAden in the past.

The most dramatic was the attack on January 9 against four US ships.

gcaptain.com/greyhound-day-…

Quick history lesson.

1/On Feb 1, 1917, Imperial Germany announced the resumption of Undeclared Submarine war. Two days later, U-53 sank the American freighter Housatonic off the coast of England. 2/On Feb 26, following the sinking of a 2nd US ship, President Wilson requested Congress the authority to arm American merchant ships; when Congress refused to act and recessed, Wilson ordered it done on March 9.

1/Merchant ships are being attacked by an asymmetric threat. The damage to ships is threatening the global supply line & leading to economic, political, & military uncertainty. The combined navies lack the adequate forces to interdict this threat and call upon the US for aid. 2/But this is not 2023 in the Red Sea, but 1917 in the Western Approaches to the English Channel.

The threat is not the Houthi with UAVs, cruise and ballistic missiles, but Imperial German submarines, with torpedoes, deck guns, mines & bombs.

The latest @Maersk advisory announced the potential resumption of trade through the Red Sea now that @USNavy has escorted through 3 US-flagged @MaerskLineLtd ships

In the Med, several 8k+TEUs are heading for Suez:
Maersk Detroit 🇺🇸, Hidalgo, Stralsund, Londrina, Tukang, Genoa, Mary Maersk, Gjertrud Maersk, Maren Maersk & Ebba Maersk There is no indication that any of the ships from Asia, are resuming their voyage toward the Suez.

1/The Pentagon's Press Secretary Maj. Gen. Pat Ryder Held a Press Briefing discussing #OpProsperityGuardian

Just a few highlights.
defense.gov/News/Transcrip… 2/The @SecDef announced the establishment of #OpProsperityGuardian utilizing the leadership of CTF 153.

1/Traffic in the #RedSea is piling up between Sudan and Jeddah waiting for military action.

A few days ago I discussed an op-ed in @LloydsList that called for the use of "gunboat diplomacy."


2/We have now seen nearly all the major container lines and major oil tanker firms announce they will not transit the #BabelMandeb

LIST: Shipping Giants Pause Red Sea Voyages as Attacks Mount

gcaptain.com/shipping-giant…

1/Shipping Giants Pause Red Sea Voyages, Dealing Blow to Global Trade

Let's take a moment and break this down.

The #Houthi have stepped up attacks against ships that are not connected to #Israel.

gcaptain.com/shipping-giant… 2/The decision by @Maersk @MSCCargo @HapagLloydAG , and potentially others, will lead to longer voyages.

This equates to delays in deliveries and higher freight costs associated with longer voyages and fuel consumption. This is happening concurrently with other issues.