Maritime News Headlines
December 2004
Tradewinds reports that Keystone Shipping has sold "Chilbar", built by Ingalls in 1959 as "Eagle Traveler" (Hull 1050), for scrapping in India (12/31). The price quoted is $461 per light ton. Chilbar's OPA90 phase-out date, May 1, 2006, is still 16 months off, so one must assume that Keystone is betting that the current high scrap prices won't last.
Great Lakes sources report that the tank barge which was being built by Manitowoc Corporation's Toledo Shipyard for Hornbeck Offshore Services, and which was due for delivery this month, has been moved in pieces to Marinette Marine for completion (12/31). Delivery is now scheduled for the spring, whenever that is in Wisconsin.
The Navy has modified its humongous multiple-boat SSN contract with Electric Boat and Newport News to provide an additional $1,5 billion in funding (12/31). Read the DefenseLink announcement here.
The Maritime Administration has sent two more NDRF ships to the breakers, "Shirley Lykes" and "Neosho". Shirley Lykes was built at Sparrows Point in 1962 as Hull 4589: Neosho (AO 143) was built at Quincy in 1954 as Hull 1633. Read MARAD's announcement here.
Tsakos Energy Navigation will send the "Athos I", which was responsible for the recent oil spill in the Delaware River, to Atlantic Marine Mobile for permanent repairs.
The Navy has exercised line items worth $165 million on Avondale's contract for the construction of the "San Antonio" class of LPDs, for the purchase of long-lead material for LPDs 22 and 23, the sixth and seventh ships of the class (12/24). Read the DefenseLink announcement here.
The US-flag tanker fleet loses another: MARAD has approved the sale of "Marine Columbia" for scrapping in Bangladesh (12/23). "Marine Columbia" was a Wrecks Act ship, originally built by Mitsui.
The U.S. Coast Guard reports that the Alaskan ferry "Fairweather", recently delivered by Derector Shipyard, was damaged by waves last Thursday, while on the way from Haines to Juneau, raising questions about the suitability of the use of fast ferries in this environment (12/21). Read the Coast Guard's release here.
Great Lakes observers report that Manitowoc's Bay Shipbuilding has delivered the 140,000-barrel tank barge "Key West" to Penn Maritime, together with its tug, "Capt. Hagen", and the 120,000-barrel tank barge "New Hampshire" to Moran (12/20).
There's a rumor going around that Wal-Mart has approached Neptune Orient Lines of Singapore about buying APL (12/17). Wal-Mart is apparently greatly frustrated by what it sees as stunning inefficiency in the liner trades and U.S. ports. This may be nothing more than a rumor, but goodness it's intriguing. The maritime industry sees to be horrified by the prospect but maybe they should welcome it.
More intriguing rumors. Employees at Avondale tell me that there are "auditors" from GD in the yard, feeding rumors that GD might be going to buy it (12/17). It's easy to understand why Northrop Grumman might want to sell Avondale, but why on earth would GD want to buy it?
The Navy has leased the inactive 18,000-ton floating dry-dock "Resolute" (AFDM 10) to Todd Pacific Shipyards, for unrestricted use at its Seattle facility (12/17).
The Navy has exercised a $188-million option on its contract with Lockheed Martin for the construction of the first Littoral Combat Ship (LCS) (12/17). The ship will be built by Marinette Marine and is scheduled for delivery by the end of 2006. Read the DefenseLink announcement here.
Newport News Shipbuilding has been awarded a $215-million contract for the Refueling amd Complex Overhauil (RCOH) of USS Carl Vinson (CVN 70 ) (12/17). Read the DefenseLink announcement here.
K-Sea Transportation has (a) bought ten tank barges and seven towboats from Bay Gulf Trading, of Norfolk VA, (b) bought a 78,000-barrel tank barge from an undisclosed seller, and (c) ordered another new 100,000-barrel tank barge, to be called DBL103 and to be delivered in the fall of 2005, from Bollinger Shipyards (12/10).
The 3600-page Omnibus Appropriations bill apparently includes $75 million for the MARAD tanker program, 50% of what was expected and only 30% of what was really needed (12/3).
The Juneau Empire reports that the Alaska Inter-Island Ferry Authority has awarded a contract to Dakota Creek Industries for the construction of a 198-foot conventional ferry for service between Coffman Cove, Wrangell and Petersburg (12/3). The ferry will cost $17 million and will enter service in April 2006.
November 2004
Rick Stickle, Chairman and CEO of Sabine Transportation, has been convicted of directing the dumping of 442 tons of fuel-contaminated grain from the US-flag tanker "Juneau" into the South China Sea (11/24). The offense carries a maximum penalty of five years in jail. The company has already agreed to pay a fine of $2 million for the incident.
Houston-based Seacor, which is not, at present, an operator of oceangoing tank barges, has shipyards working on proposals for a 275,000-barrel ATB (11/23). An intriguing development.
Carnival Lines will foot the $1.3 million bill for restoration of the Cousteau Society's famous research ship "Calypso", which has been laid up in La Rochelle for the past eight years (11/22). The work will be done at Grand Bahama Shipyard, in which Carnival has an interest. Calypso was built by Ballard Marine Railway, in Seattle, in 1942, as BYMS 26, a Mark 1 YMS (yard minesweeper) built specifically for transfer to Britain for use by the Royal Navy. Read Carnival's announcement here.
The Chief U.S. Magistrate in Boston has fined Bouchard Transportation $10 million for the spill in Buzzards Bay in April last year (11/22). Read the press release here.
No announcements, (surprise, surprise), but Northrop Grumman has introduced a force reduction program at Avondale (11/19). Over 600 long-term (i.e., experienced) employees have been bribed to go away (I mean are taking early retirement) and the contract workforce of several hundred is being eliminated. Can there be any doubt but that Avondale's future, if it has one at all, is as a subcontractor to Ingalls?
Matson Navigation jacks up its rates yet again (11/19). In 2005, the poor people of Hawaii will have to pay $140 more per container and $30 more per vehicle, and this on top of last year's increases of $150 per container and $30 per vehicle. Rob Quartel, where are you? Read Matson's announcement here.
The Navy has exercised options at Bath and Ingalls for one additional DDG each (11/19). Bath will build DDG 111 for $488.6 million, delivering by May 2010, and Ingalls will build DDG 110 for $470.0 million, delivering by June 2010. Read the DefenseLink announcements here.
The bankruptcy judge in Delaware has approved Oglebay Norton's reorganization plan and the venerable Cleveland-based Great Lakes operator should emerge from Chapter 11 in January (11/19). Read ON's announcement here.
Halter Marine has won a $32mm contract from the Steamship Authority to build a new 254-foot ferry for the Woods Hole - Martha's Vineyard service (11/14, 11/26). The new ferry, which will carry up to 1200 passengers and 76 vehicles, will be called "Island Home" and will replace the venerable "Islander", built by Maryland Shipbuilding in 1950. She will be built at Halter Moss Point and will be delivered in 2Q 2006. Read Halter's announcement in the Press Releases section of their web site, here.
Marinette Marine has delivered the first of three new Staten Island ferries, the "Guy V. Molinari" (11/14).
The break-bulk cargo ship "SCM Athina" hit the offshore platform "High Island 207" last week, setting it on fire (11/10). Read the Coast Guard's press release here.
Kvaerner Masa Marine, (KMM), the innovative firm of naval architects and marine consultants based in Vancouver BC and Houston TX, has been pulled out from under its former parent, (Kvaerner Masa Yards, now Aker Finnyards), and placed under the group parent company Aker Yards (11/10). Renamed Aker Marine, this will give it access to a much broader range of Aker-owned technology.
Final proposals were submitted to MARAD today for the MSP tanker program (11/5). See comment.
October 2004
The cruise ship Universe Explorer has been sold for scrap (10/29). Built by Ingalls in 1958 as "Brasil", (Hull 467), it follows its sistership, the former "Argentina", (Hull 468), which was sold for scrap last year.
The Navy League of the United States, (NLUS), has withdrawn its support for the American Shipbuilding Association, (ASA), describing the ASA's tactics as "divisive" (11/23). Read the NLUS announcement here. Let's see now, is there anyone left in Washington that Cindy Brown has not antagonized?
NOAA has selected Halter Marine's design for a SWATH hydrographic survey ship, rejecting that of the other finalist, Nichols Bros., and has exercised an option on its contract with Halter to proceed to contract design. Alan C. McClure & Associates will support Halter in this effort and, all being well, a construction contract will follow in August. Read NOAA's announcement here.
Lockheed Martin, (LMT), has been awarded a contract by Hoteleria y Servicios Petroleos, (HSP), for the design and construction of two SWATH crew boats for a five-year charter to Petroleos Mexicanos, (PEMEX) (11/23). The $25-million contract will utilize LMT's revolutionary SLICE design and the boats will be built by FBM in its shipyard in the Philippines, for delivery in 2006. Read LMT's announcement here.
Less than two months after Polar Tankers pulled "Polar Adventure" out of Northrop Grumman's Avondale shipyard for completion in the Bahamas, Northrop Grumman has itself decided to complete LPD 17, the future USS San Antonio, at its Ingalls shipyard in Pascagoula MS (10/7). The ship, which is due for delivery to the Navy in mid-December, will be towed out of Avondale in the middle of the night on October 23. A dead ship, fewer than two months before delivery? Apparently there have been multiple engine and generator failures resulting from inadequate cleaning and careless testing.
NCL America has had to make still more concessions to its customers as a result of continuing complaints about the service on the much-ballyhooed US-flag cruise ship "Shame of Aloha" (10/7). Reservations can now be cancelled without any penalty. In addition, the mandatory $10 per person per day service charge has been lifted and customers are at liberty to tip as much or as little as they wish.
Quality Shipyards has secured an $5.6mm contract to build a towboat for the U.S. Army Corps of Engineers (10/7). Delivery is scheduled for June 2006. Read the DefenseLink announcement here.