MATSON RAISES RATES

Matson's freight rates to Hawaii are going up again, by $120 per westbound TEU and $60 per eastbound TEU, plus an additional $125 "terminal handling charge" per westbound TEU and $60 per eastbound TEU.  Read Matson's announcement here.  You have to love Dave Hoppes' justification.  He calls a 3.8% increase in rates "modest", in a year in which the Consumer Price Index declined,  and describes it as "necessary" before going on to claim that Matson "has been diligently implementing cost reduction measures across-the-board, without undercutting the quality of its service."  Some Hawaiians might wonder why, if costs can be reduced "across the board", rates might not be reduced too.  But anyone who asks such a silly question obviously doesn't appreciate the benefits that the good old Jones Act brings to the lucky people of Hawaii.  Now, wait two days and you'll see Horizon raising its rates by exactly the same amounts.  Just a coincidence, of course,  November 27, 2009.

SECNAV TO APPEAR ON "NCIS"

The Associated Press reports that Secretary Mabus will appear in the special Thanksgiving episode of the CBS series "NCIS", to be aired this Tuesday, November 24.  He will play the part of an NCIS investigator.  November 22, 2009.

LCS 2 COMPLETES ACCEPTANCE TRIALS

Austal USA's revolutionary ship, the future USS Independence, (LCS 2), sailed through her Acceptance Trials this week and will be delivered early in December.  Read the report in Defense News here.  See video from GD here.  November 20, 2009. 

SAIPAN IN BROWNSVILLE

The old ship arrived at the breakers' yard on Wednesday.  Read the story in the Brownsville Herald here.  November 20, 2009.

DOLPHINS AND SEA LIONS TO GUARD NAVAL BASE

The Navy is to implement the first marine mammal protection force at Naval Base Kitsap.  Read the announcement here.  This is great, isn't it?  What's next?  Alligators patrolling the perimeter of Naval Station Mayport?  Or even seals that can drive an SSN without hitting anything?  November 18, 2009.

LA PRINCESA REFLOATED

Titan Maritime - a subsidiary of Crowley - refloated the grounded trailer barge La Princesa at about 5 am today.  November 18, 2009.

$1.7 BILLION FOR 45% OF YANTAI RAFFLES

This is not really U.S. news but anyone who watched the implosion of Halter Marine Group in the 1990s will be interested to know that a Chinese company just paid $1.7 billion for 45% of the stock of Yantai Raffles, the company created by Brian Chang with Halter's help and of which Halter could have been a part owner if it hadn't been managed by idiots.  November 18, 2009.

LAKERS GOING BACK TO WORK

It's not a complete recovery but it's a promising sign.  Five of the 13 laid-up lakers went back to work last month.  Read the LCA report here.  November 18, 2009.

"LAX LEADERSHIP" CAUSED HARTFORD ACCIDENT

The Navy Times reports examples of the casual atmosphere on the USS Hartford, the SSN that collided with the USS New Orleans on March 20 and sustained more than $100 million in damage.  Among them are the navigator listening to his iPod, watch standers sleeping on the job and the stereo speakers in the radio room being rigged to play music.  Read the report here.  November 17, 2009.

NEWPORT NEWS LAYS KEEL OF CVN 78

The world's greatest shipbuilder laid the keel of the world's most expensive ship, the future USS Gerald R. Ford, (CVN 78), on Saturday.  Read the announcement here.  November 15, 2009.

US SHIPPING OUT OF CHAPTER 11

So US Shipping Partners is now US Shipping Corporation: read the announcement here.  Regrettably, it is still managed by the same people who put it in bankruptcy in the first place.  The bondholders are in control, however: let's hope that they are watching their investment closely.  And the company still has to submit quarterly status reports to the Bankruptcy Court for a while.  They are no longer associated with the five new ships being built by NASSCO, but they do have four new ATBs, three built by Bay Shipbuilding and one the 30%-over-budget fiasco sort-of built by Senesco.  And they have the other old stuff listed on the table at the foot of this page, much of which is junk.  They must be particularly proud of the Sea Venture, pictured on the right, which they bought for $12 million in 2005 and which has been laid up in Veracruz, Mexico, for most of the time since then.  November 14, 2009.

TRAILER BARGE LA PRINCESA AGROUND NEAR NORFOLK

Crowley Maritime's triple-deck trailer barge La Princesa, en route from San Juan PR to Pennsauken NJ, broke free of her tug on Friday, in the storms generated by Hurricane Ida, and is aground on the beach in Sandbridge VA, as shown on the right.  Read the report in Professional Mariner here.  November 14, 2009.

INDEPENDENCE BANNED FROM INDIA

The BBC reports that the Indian Government has refused entry to the former Independence.  Read the story here.  So what now?  One conjecture is that she will be towed back to the U.S. but will have a mysterious accident somewhere in the middle of the Pacific Ocean.  That's what happened to her sister, the Constitution: she was being towed west in 1997 when she mysteriously slipped beneath the waves.  By the way, click here to see a whole bunch of wonderful pictures of these two fine ships.  November 10, 2009.

WSF LOOKING FOR FOREIGN FERRY

The Passenger Vessel Association reports that Washington State Ferries is now looking for a foreign-flagged and, therefore also, conceivably, foreign-built ferry for its one international route, between Anacortes WA and Sidney BC.  I don't see the RFP on the WSF web site yet, but when it shows up I will post a link.  November 10, 2009.

AUSTAL OPENS NEW $88 MILLION FACILITY

Only a day after Fincantieri announced plans to invest $100 million in Marinette and Bay, Austal held an opening ceremony for its new $88 million facility in Mobile.  Read the announcement here.  And note that the RFP for the next phase of the LCS program comes out this week - read the synopsis on FedBizOpps here.  November 10, 2009.

KINGS POINT TO GET A NEW LEADER

The Superintendent of the U.S. Merchant Marine Academy, Rear Admiral Allen Worley, has resigned after only a year on the job.  Read MARAD's announcement here.  Was he pushed?  November 10, 2009.

AHL TANKER PROGRAM DEAD

Sources say that my prediction of October 13 - see below - has come true and Shell has now terminated its Jones Act shipbuilding program.  What will Shell do now?  Is this the end of the road for American Heavy Lift?  How damaging is it for Atlantic Marine?  November 9, 2009.

MARINETTE AND BAY TO GET $100 MILLION IN CAPEX

The Milwaukee Sentinel reports that Fincantieri is planning to spend $100 million in capital improvements at Marinette Marine and Bay Shipbuilding, $40 million of it next year.  Read the story here.  Good for them.  November 9, 2009.

SAIPAN GOES BY

The USS Saipan, (LHA 2), just sailed past at a stately six knots, on her way to International Shipbreaking, in Brownsville TX.  I still don't understand why we throw away perfectly good ships like this.  Why not SLEP them and postpone their replacement?  After all, if we can make a CVN last 45 to 50 years, why not something as simple as a helicopter carrier?  But what do I know, I'm just a taxpayer.  November 4, 2009.

EPA BACKS DOWN ON OLD LAKERS

The MEBA newsletter reports that a deal has been negotiated with the EPA under which the 13 Great Lakes steamships that cannot burn low-sulfur fuel without risking a catastrophic engine explosion would be exempted from the new regulations.  The final rule issued by EPA will include a waiver provision to address either the inadequate supply of low sulfur fuel or serious economic hardship caused by the increased cost of such fuel.  The Category 3 diesel ships on the Great Lakes would be able to apply for the waiver.  EPA will evaluate the economic impact of the final rule on Great Lakes carriers and issue a report within six months.  November 4, 2009.

"UNCONSCIONABLE, INEQUITABLE HARM"

A group of Hawaiian businesses is suing the United States, alleging all kinds of things, including that Matson and Horizon conspired to fix fuel surcharges, and requesting that the Government be enjoined from enforcing the Jones Act.   Read the complaint here.  November 3, 2009.

IRS TO GO AFTER JONES ACT CHEATS

The IRS has issued a new directive on enforcing compliance by OCS operators with the tax laws.  Read it here.  No wonder Gulfmark is restructuring itself.  Who else needs to take action?  This is not a good time to be caught cheating.  November 2, 2009. 

NEW YORK IN NEW YORK

The USS New York, (LPD 21), looking fine, arrived in New York City today for a week of celebrations, culminating in her commissioning on Saturday.  Read the story in the NY Times here.  November 2, 2009.