Sunday, October 25, 2020
Hawai'i Free Press

Current Articles | Archives

Friday, April 1, 2016
Valuing the Jones Act Fleet
By Michael Hansen @ 7:55 PM :: 2737 Views :: Jones Act

by Michael Hansen, Hawaii Shippers Council, March 29, 2016

The Maritime Executive Magazine published on March 21, 2016, a news article, “The value of the Jones Act fleet: $4.6 billion,” covering a presentation by Ltd. (VV) at the annual trade show of the Connecticut Maritime Association (CMA) in Stamford, Connecticut.

The article appears to include several inaccuracies and inconsistencies. As the original VV presentation is not available, we can’t know if the problems are with the author’s description or the original VV presentation.

According to a VV table reproduced in the article, there are 160 ships in the Jones Act fleet or on order from US. shipbuilding yards. Reconstructing this number, it appears to include the 93 ships listed on the U.S. Maritime Administration (MARAD)’s list of oceangoing self-propelled ships over 1,000 gross tons, 53 self-propelled ships over 1,000 gross tons in the Great Lakes fleet known as “Lakers”, and 14 oceangoing ships over 1,000 gross tons on order from U.S. shipbuilding yards. Typically when citing fleet statistics, the Lakers are not included with the oceangoing ships, because the “Lakers” are landlocked and cannot be employed elsewhere.

The article states VV found there are 14 oceangoing ships on the “order books”, but that includes eight tankers that are not firm, and omits four containerships currently under construction.

The article correctly states there are three major U.S. shipbuilding yards constructing commercial ships, and identifies General Dynamics NASSCO shipbuilding yard in San Diego and Philly Shipyard in Philadelphia. However, it fails to identify the VT Halter Marine Inc. shipbuilding yard in Pascagoula, Mississippi (it actually states the third yard is at Mayport on Florida’s East Coast).

The vessel valuations include the Jones Act premium, which for a newbuild can be four to five times that for a comparable ship built in an internationally competitive shipyard. Those extraordinary values are used to compare the U.S. built fleet with foreign flag fleets. Normally, fleet comparisons are made using gross tonnage, not artificially inflated ship values in a protected market, as is that encompassed by the Jones Act.

The presentation on vessel ages seems to be correct. It states the average age of a Jones Act ship is 33 years as compared to 13 years for the international fleet, 46 years for Jones Act bulk carriers (“bulkers”) versus 9 years, and 32 years for Jones Act containerships versus 11 years.

Key excerpts include:

With the annual Connecticut Maritime Association trade show in Stamford, Connecticut, commencing March 21, VesselsValue has taken a look at the value of the U.S. fleet and its activity in the last twelve months.

There are currently 160 U.S.-built bulkers, tankers and gas carrier vessels on order or on the water (see Table 1). The total capacity of these vessels is just over seven million dwt, with a total current value of $4.5 billion. Globally, the U.S. is ranked in eleventh place by shipbuilding capacity and a respectable sixth place behind the South Korea, Japan, China, the Philippines, Germany and Turkey in terms of the current value of the American-built fleet.

Based on the volume of ships on the water, the most prolific ship builder is NASSCO, the commercial and naval building subsidiary of General Dynamics. This is the only deep-sea shipbuilding facility on the U.S. West Coast, with two other shipyards on the East Coast at Mayport and Norfolk. VesselsValue currently values the surviving output of NASSCO at around $900 million, excluding deleted ships.

The only other US shipyard with bulker, tanker and gas carrier vessels on its orderbook is Philly Shipyard (formerly known as Aker Philadelphia Shipyard). Philly Shipyard mainly builds product tankers, but has also built four containerships. The yard’s built fleet is currently valued at just over one billion dollars.

The current US-built fleet has an average age of 33 years, versus 13 years for the global fleet.

Nonetheless, the US-built bulker fleet has an average age of 46 years versus nine years for the global fleet.

Even a relatively modern ship type, such as container vessels, are on average 32 years old, positively ancient compared to an average of 11 years old for non-US built vessels.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

ACA Signups Hawaii


Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni


Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DVids Hawaii

E Hana Kakou Kelii Akina


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii