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February 2008

President's Report - Michael Sacco
NASSCO Starts 2nd Tanker Construction
Seafarers Show Strong Interest in 401k Plan
SIU CIVMARS Rescue UAE Mariners
4th 'Lewis and Clark' Ship Delivered to MSC
NTSB Releases Preliminary Report on Majestic Boat Grounding
APL Balboa Re-Flagging Means More SIU Jobs
MarAd Report Lauds Seafarers
ITF Week of Action a Success
Letters to the Editor

Home / Seafarers Log / 2008 Issues / February 2008

President's Report - Michael Sacco

February 2008

U.S. Shipbuilding Remains Vital

Every industry sees its share of ups and downs, and American commercial shipbuilding is no exception.

As we move further into the New Year, I’m happy to note that things are on an upswing at several domestic yards. Challenges always remain, but the tanker construction programs in Philadelphia and San Diego, along with ATBs being delivered from other yards, clearly are positive developments for our industry and our nation.

It seems to me the value in maintaining a strong commercial shipbuilding capability is, at the very least, good common sense. Doing so maintains family-wage jobs and protects U.S. national and economic security by helping prevent too much reliance on other countries. The rationale in some ways is the same as what we know to be true of the U.S. Merchant Marine: As a nation, we simply cannot afford to be without the reliable manpower or the industrial capabilities found in the maritime industry – particularly in the post-9/11 world.

Naturally, this belief isn’t confined to the commercial side. Since our country’s earliest days, naval power has been a key part of a strong defense strategy. We’ve heard the idea summarized time and time again. “America is a maritime nation.” “America is an island nation.” However it’s expressed, the bottom line is the same: Important strategic interests will be put at risk if U.S. naval power is allowed to fall below a certain level.

Undoubtedly with that in mind, years ago, Congress and the Reagan administration undertook a buildup for the U.S. Navy. By 1987, the fleet reached slightly more than 560 vessels. In that year alone, 17 replacement vessels were built. But ever since then, the annual build rate has declined sharply. For instance, in 2006, only four new vessels were built. Not surprisingly, the U.S. Navy has fallen below 300 vessels. Unless some corrective action is taken soon, the United States fleet will soon fall below 200 vessels.

As Senator Jim Webb (D-Va.), a former secretary of the Navy and Marine officer, put it last month, “Simply stated, we are decommissioning Navy ships faster than we are building them. It’s imperative that we reverse this steady slide in shipbuilding.”

The decline of the U.S. Navy is not happening in a vacuum. Again to cite just one example for comparison’s sake, China has been investing heavily in its naval fleet. In certain areas, most notably submarines, it already has overtaken the U.S. The technological advantage that the U.S. once enjoyed is steadily shrinking, too.

For years, the SIU – often working through the AFL-CIO’s Maritime Trades Department – has fought this trend. In addition to the obvious strategic benefits, increased naval construction in U.S. shipyards generates hundreds of thousands middle-class jobs for American workers. These jobs in turn generate badly needed tax revenues and benefits that some U.S. workers would not otherwise enjoy.

There is a core of lawmakers in both the House and Senate who recognize the danger of allowing the U.S. Navy to fall below a certain fleet level. A “Sense of the Congress” resolution was introduced in the 109th Congress calling for a 375-vessel naval fleet. Also in the 109th Congress, the Chief of Naval Operations unveiled a plan to stabilize the fleet at a 313-vessel level.

Last year in the first session of the 110th Congress, the House Defense Appropriations Subcommittee took the lead on this matter. It issued a report stressing that U.S. shipbuilding is “desperately in need of stability.” The subcommittee concluded that the only way to achieve that is by increasing production.

While Congress failed to make headway on many funding bills last year, one that it did pass (H.R. 3222), approved $16 billion for the procurement of nine naval vessels. That is five above the administration’s original budget request. The additional ships include an amphibious transport dock ship, three combat force logistics ships and enough money to begin work on a second attack class submarine.

This is an important step in the right direction, and I applaud Congress for increasing the build rate. It’s a movement that must continue in the years ahead, because maintaining both a viable naval and commercial shipbuilding capacity clearly is in the best interests of our great nation.

 

 
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