Maritime News and Comment
October 2008
COAST GUARD LOSES ACQUISITION AUTHORITY
The Department of Homeland Insecurity has stripped the Coast Guard of its independent acquisition authority. Read the story on DoD Buzz here. Interesting. An outcome, I suppose of the Deepwater fiasco, but the point still escapes me. I mean, they've reorganized the process and we now have one of the best Commandants ever. This was an action that might have made sense three years ago but now, no. October 31, 2008.
DDG 1001 TO BE NAMED FOR SEAL:
SECNAV has announced that the second of the "Zumwalt" class of DDGs will be named the USS "Michael Monsoor", for the SEAL who was posthumously awarded the Medal of Honor for his valor in Iraq. Read the announcement here. October 30, 2008.
BENDER SELLS TAMPA BAY TO CHOUEST:
Tom Bender has agreed to sell his interest in Tampa Bay Shipbuilding to Edison Chouest Offshore. See the internal announcement here. Why? Because Bender Shipbuilding still has cash flow problems. I understand that talks were held with other potential buyers but ECO came out on top. How much? Not revealed, but I would be surprised if it did not come out later. Construction of the big barges for OSG America will continue without interruption, they say. But note that Bender and OSG are being sued by EMD: read the complaint here. And note also that any transfer of the lease on the Tampa shipyard must be approved by the landlord, Tampa Port Authority. October 29/30, 2008.
HORIZON AND USS HIT NEW LOWS:
Despite yesterday's recovery, temporary though it might be, our two hapless Jones Act shipping companies, Horizon Lines and US Shipping, managed to hit new lows, while their more diversified competitors, A&B and OSG, managed small upticks. Horizon's stock is now at $3.15, down from a 52-week high of $32.25, while US Shipping's is at $0.69, down from a high of $19.75. Is it time for the bailiffs to move in yet? October 29, 2008.
HAWAIIAN SUPERFERRY BLAMES ECONOMY:
Introduction of the second superferry has been put back a year, until economic conditions are better. Apparently Hawaiians don't go to the big island when times are bad. The company will also be able to defer what it says are $10 million in start-up costs, although it will still, of course, be paying the debt on the ship, plus lay-up costs. Very curious logic, curious enough to cause one to wonder if there may not be other, unspoken, reasons. October 29, 2008.
MASS MARITIME RENAMES TRAINING SHIP:
Massachusetts Maritime Academy is planning to rechristen its training ship "Kennedy", in honor of Senator Edward Kennedy. She was originally the "Velma Lykes", built by Avondale in 1967, sent to the RRF in 1985 as "Cape Bon", and converted to the training ship "Enterprise" by Bender in 2001. October 28, 2008.
NEWPORT NEWS TO GET INTO NUCLEAR POWER:
Newport News is to have another go at the commercial nuclear power business. (They went down this track once before, back in the 1970s.) Read the announcement here. Read also the report and accompanying comments in the Virginian-Pilot here. Seems like a good idea to me, especially if construction of the second "Ford"-class carrier is delayed, as it might well be, and if the next class of surface combatants is not nuclear-powered, as it probably won't be. October 24, 2008.
SEACOR BUCKS TREND:
Seacor Holdings, possibly the most diversified company in our industry, had improved results in the third quarter, according to the 8-K they filed yesterday, primarily because of increased offshore activity. Earnings per share were up over 24%. Read their press release here. An interesting table summarizes Seacor's inventory of equipment. October 23, 2008.
| SEACOR HOLDINGS INC. | |
| EQUIPMENT BY LINE OF BUSINESS | |
| Offshore Marine Services | |
| AHTS | 20 |
| Crew | 77 |
| Mini-supply | 19 |
| Standby safety | 29 |
| Supply | 27 |
| Towing supply | 15 |
| Specialty | 10 |
| Marine Transportation Services | |
| Product carriers | 8 |
| Inland River Services | |
| Open dry cargo barges | 338 |
| Covered dry cargo barges | 643 |
| Tank barges | 75 |
| Deck barges | 26 |
| Towboats | 21 |
| Aviation Services | |
| Light helicopters | 115 |
| Medium helicopters | 58 |
| Heavy helicopters | 6 |
| Harbor and Offshore Towing Services | |
| Harbor and offshore tugs | 35 |
| Ocean liquid tank barges | 3 |
BOLLINGER SUES NORTHROP GRUMMAN:
The Navy Times reports that Bollinger Shipyards has filed a $12 million suit against Northrop Grumman over the disastrous stretching of eight "Island"-class patrol boats, alleging that NG “through its sole negligence, delivered late, ill-defined specifications and drawings to Bollinger.” Read the report here. Go get 'em, guys. October 21, 2008.
BLACKWATER TO PROVIDE PIRACY PROTECTION:
Security specialists Blackwater Worldwide are to offer protection for shipping against pirates in the Gulf of Aden. Read their press release here. Blackwater has acquired the former NOAA survey ship "McArthur", built by Norshipco in 1966, and converted it into a privateer, although they call it a "multi-purpose maritime vessel designed to support military and law enforcement training, peacekeeping, and stability operations worldwide." Boy, that makes me feel better. October 21, 2008.
GULF COAST SHIPBUILDERS MOVE FORWARD:
A bunch of Gulf Coast shipbuilders, large and small, is collaborating to train a new generation of shipyard workers. Read the story in the Mobile Register here. Good move. October 20, 2008.
OSG SHUTTLE TANKERS DELAYED:
Aker Philadelphia Shipyard has revealed that its
construction sequence has had to be modified to move the two shuttle tankers
back, because their financing is not yet in place. Read the announcement
here. A
bit disruptive, maybe, but not the end of the world. October 20, 2008.
NEW T-AGM TO BE NAMED FOR LORENZEN:
The Navy has announced that the new missile range instrumentation ship being built by VT Halter Marine, designated T-AGM 25, will be named USNS "Howard O. Lorenzen", after the man known as "the father of electronic warfare". read the DefenseLink announcement here. October 13, 2008.
CONRAD GETS CRANE BARGE CONTRACT:
The Corps of Engineers has awarded a $19.9 million contract to Conrad Industries for the construction of a crane barge, to be delivered by 31-May-10. Read the DefenseLink announcement here. October 11, 2008.
PLAN FOR REACTIVATION OF MARE ISLAND:
Another loony shipyard project has surfaced, this time involving Mare Island NSY, which has been closed since 1996 and hasn't built a new vessel since 1972. The Vallejo Times-Herald reports that an outfit calling itself California Dry Dock Solutions is proposing to reuse the MINSY facilities for ship construction, repair and demolition. All three! All at once! Read the report here. Where do these dimwits come from? October 11, 2008.
MIDWEST RESCUE AIRBOATS GETS CG CONTRACT:
The Coast Guard has awarded a contract for up to 35 air boats to Midwest Rescue Airboats, of Lawrence KS. The contract is valued at $9.5 million. Read the announcement here. Never a dull moment in the small craft arena. October 11, 2008.
CONCERN OVER UNUSUAL CHRISTENING:
The Navy Times has expressed concern over the way in which LCS 2 was christened, with the breaking of the now-standard bottle of bubbly on a striker bar rather than on the vessel's bow. Read the story here. What nonsense! What has become the standard form for christenings only dates to the mid-19th century. Before that there were all kinds of different practices, most tied back to pagan practices from before the Christian era, like so many of our modern holidays and celebratory practices. Anyway, shouldn't it be called a blessing or a dedication, or something non-denominational? October 11, 2008.
METAL SHARK GETS TACOM CONTRACT:
Gravois Aluminum Boats, dba Metal Shark, Inc., of Jeanerette LA, has been awarded a contract by the U.S. Army's Tank-Automotive and Armaments Command, (TACOM), for the construction of 54 fast attack boats. Read the DefenseLink announcement here. The contract is valued at $6.1 million and must be completed by end-June 2010. October 10, 2008.
TRANSOCEAN MOVING TO GENEVA:
The world's largest operator of offshore drilling rigs may act as though it's based in Houston but its corporate HQ is in the Cayman Islands. Or at least it was. The company announced yesterday that it was moving its corporate HQ to Geneva. Switzerland, that is. Probably because the restaurants are better there. Nothing to do with taxes, for sure. October 10, 2008.
MARINETTE PROTESTS FRC AWARD TO BOLLINGER:
Defense News reports - read it
here - that
Marinette has protested the Coast Guard's award of the FRC contract to
Bollinger. No surprise there. In fact, it would be amazing if they
did not. Protests are not expensive, so what have they got to lose?
And don't you think that Manitowoc Corporation's deal to sell Marinette to
Fincantieri is double-sided? It's $X million with the FRC program but only
$Y million without it. October 9, 2008.
LCS 2 CHRISTENED:
The first of the "Independence" class of littoral combat ships was christened yesterday in Mobile AL. Read the Mobile Press-Register's report here. October 5, 2008.
RIDICULOUS RUMOR ABOUT SPARROWS POINT:
The Dundalk Eagle reports that the Secretary of the Maryland Department of Business and Economic Development, a David W. Edgerley, has told the Federal Energy Regulatory Commission, (FERC), that “Currently there is a major shipbuilding entity that must remain confidential that has seriously professed interest in developing the shipyard into an active state-of-the-art operating fully functional shipyard.” Read the report here. Let's be absolutely clear about this. The idea of reactivating Sparrows Point is ridiculous. No reputable shipbuilder would look at Sparrows Point for more than two minutes. First, there's no market for a big-ship shipbuilder. Second, the yard built its last ship 20 years ago and is now a run-down dump. And third, the workforce, which was unproductive and overpaid 20 years ago, is long gone and is not coming back. If anyone is looking at it, it's probably that nitwit from Santa Maria Shipping, who lives in a dream world and has absolutely no credibility at all. Get real, Mr. Edgerley, or are you just trying to obstruct the project to build an LNG import terminal? October 3, 2008.
EDISON CHOUEST DEAD AT 91:
One of the pioneers and great entrepreneurs of our industry, Edison Chouest, died on Wednesday. Read the report in Houma Today here. October 3, 2008.
SHIPBUILDERS WIN CASE AGAINST MATSON:
The Shipbuilders Council of America has won its case against Matson Navigation and the Coast Guard, in which it alleged that the conversion of the "Mokihana" in China was contrary to the Jones Act. Read the court's order here, although it doesn't tell you anything - we will have to wait a couple of weeks for the memorandum of opinion. October 1, 2008.
BAN ON OFFSHORE DRILLING LIFTED:
The Pres. signed the law this morning and 85% of the OCS is now open to development. The 15% that isn't is right here in Florida, where we expect to be kept adequately supplied by all you other folks, because we're old and tired and selfish and we deserve to be coddled in our old age. Of course, nothing's going to happen any time soon: it's all political posturing. Apart from anything else, as we've pointed out here before, there aren't any spare rigs. October 1, 2008.
CROWLEY ORDERS FOUR MORE BIG DECK BARGES:
Greenbrier Companies, the parent of Gunderson Marine, and Crowley Maritime have executed a contract for the construction of four 455-class oceangoing deck barges, with options for four more after that. Read Greenbrier's announcement, which rather misleadingly talks of ten barges, by including not only the four options but also the two that are already under construction, here. Read Crowley's announcement here. October 1, 2008.
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