@@wyldhowl2821 Ah yes the classic appeal to authority. Ignore what all the economists say about the negative effects of the Jones Act. Honestly he lost me the moment he compared coastal shipping to trucking....
The US shipbuilding industry is pretty much propped up by military construction and repair. The civilian shipbuilding industry hasn't been great since WW2.
@@brianjonker510 In the first term Trump did hire some competent people- Sal would definitely be in that group! But Most were fired or left. This time it will all be yes men or really YES women.
No. you need a political animal on that spot, one who can move the laws trough the bureaucratic mazes, know how to play the Game of Thro... Lawmaking. but they need people like Sal as their advisers. people who will be advising without having to leave after 4 years. ;)
I think you mean Transportation Secretary...that said it would be a mixed blessing. Sal probably excellent in that position but that means the channel tanks which means that his voice would be lost as an honest critic of the administration's policies. That said it would be great to see him in the White House wearing the Hawaiian shirt of the day.
Congress people tend to focus on their District's or State's local affairs. Maybe that's why they just give it over to the Navy with its national focus to do many things in this area.
@@user-mp3eq6ir5b to be honest, I'd rather someone like her, who is passionate about her love of country, than someone who is selfish and only wants to line their own pockets.
With conections in the American TV/Radio spear: A lot of TV/radio stations are built around election adverts becuse otherwise they all go bust otherwise - TV and esp Radio margines are so thin and adverts outside election times pay so little they use the bump from election adverts to stay in business or even invest/pay off debt - A lot of radio station get brought sold with the year up to the mid terms.
IF you think only Americans get political ads, you;d be mistaken. Here in Canada we get them too, and they are for our politics. Some of them for people I fucking HATE, and there is no way to get rid of them. If only one could click "do not recommend" on the ads as well as the videos !
A great podcast! I learned more from this podcast about American shipping and trandport of goods than I have seen or read in the last 40 years. (I am 76)
One of the big troubles is not enough information for younger folks so many don't even know seafairing is an option. I also agree that these cruise lines that make so much money of this nation but they employ almost no USA mariners the skilled positions officers, engine room crew, they profit so much of us they should be made to employ our folks for good wages.
As a cal maritime cadet they are definitely starting to see the benefits of having American seafarers. They are showing their face a lot more recently.
A rule the Cruise companies would like to see go away is the one where a ship has to visit a foreign port before a us port, I E. Cruise out of seattle, the ships have to go to a Canadian port before a U.S. port. Usually on the return leg they go into Victoria before going back to Seattle.
If US ships no longer had to make stops at our Canadian ports on the way to Alaska, why would we in BC then allow them to use our very scenic inside passage route to go there at all? We have sovereignty over our own waters and could just say "ships that do not stop in Canada have to go out the Strait of Juan De Fuca to the open Pacific ocean, and then travel north only outside our 12 nm limit" - going way out to sea like that would make the journey between Seattle & Alaska a lot less appealing. Plus the cargo haulers who also wind the same route carrying things like vehicles and towed barges full of fuel would not be happy having to take the outside route as well.
@@justinaubin5174 Not knowing the exact text of those treaties, I have no idea. However, as all the cruise ships and definitely things like towed fuel barges pose a pollution risk in the narrow waters, in the name of risk reduction (risk vs. benefit analysis) one could still probably do it. The waters of BC are Canadian, we have the sovereign right to direct ship traffic where we wish, and it is not like it would result in Alaska being inaccessible, therefore not like a blockade.
Sal, this is excellent. I would be very happy (and not surprised) if you found yourself in a position in the administration. Those shipbuilding stats are especially frightening.
One advantage of increased ship building in the US is that it would make the maritime steel production companies viable. Those semi-specialized steel works that make the steel for ships are barely viable. Trump noted this as he banned the substandard steel coming in from China first directly and then via Canada, Mexico and Brazil.
It's already using its own shipping for coastal and domestic traffic and between Hawaii and Puerto Rico. There's not enough to sustain international trade.
I think the biggest obstacle to overcome with all you great ideas is : Where are we going to get the labor to do all this? As you said , not enough is being done in our school systems to promote a career in maritime. Most US kids today are under the impression that they will be able to sustain a livelihood by simply sitting at their keyboards making YT videos ( no pun intended ) or door dash meals and magically earn an income that will make them rich. I'm willing to bet that many high school graduates don't even know what maritime is.........A time to get married, or what? Let's all sign up for MAMGA movement. ( Make American Maritime Great Again ) 😁 Great video as always Sal.
A river cruise on the Mississippi costs twice as much as a river cruise in Europe. Jones Act. Fine, don't throw the whole thing out but we have to loosen the grip...At least allow foreign manufactured ships...they can still be US owned and operated. I'll admit that I wrote this before watching the whole video and Sal mentioned the same idea...if only....it sure would be nice. That can even potentially help the us industry by strengthening the ship owning companies. More and bigger customers might start looking at domestically produced ships if a legitimate advantage can be found, not just legal compliance.
I am definitely in favor of modifying the Jones act to amend the US Built requirement. We can even compromise like you suggested and only include ships manufactured in certain countries.
Oh spare me, puhh-leeze!🙄Sal is smart. If you honestly think that he voted for that empty, < 60 IQ, kackling nasaly pantsuit for POTUS... I've got a bridge to sell you!🤦🏼♂️
Sal, I feel that just like the auto industry if we didn't want change we would still driving a Model A. If we want to be a player in the maritime industry we need to address the handling of ships cargo problems. There has to be changes in the industry and ship building. I understand much of the information that your videos tell, thank you for the work that you do.
We have a ton of sailors experienced in running shipboard reactors, but they're all on Aircraft Carriers and Submarines. To get seafarers, get the Coast Guard to start recognizing the relevance of Naval Service and Sea Time...
As one who spent 4.5 years as a naval officer, then another 33 years in the Merchant Marine, I can attest that Navy and Coast Guard sailors are woefully unprepared to work aboard merchant ships, at least on the deck side. They have zero experience working cargo and anyone above E-4 becomes a supervisor and no longer does any actual work.
It is absolutely idiotic that it is so expensive to ship between the west coast and Alaska. It would change the world if we could get shipping costs to Alaska under control. It would also really change things if we could ship oil to our own refineries. None of this makes any sense. I understand that the point of the Jones act was to protect US ship building but it obviously failed in that regard. I agree. We need to fix the problem. The first step is for everybody to agree that there is a huge damn problem. What do you think about the potential of developing the Red River to transport bulk cargo from the I-35 Corridor north of DFW to the Mississippi? That would open up North Texas, Oklahoma etc.
Great stuff to watch while having my Saturday morning breakfast. Spent yesterday further refining our "Trump contingency plan" and shelving the "Harris contingency plan".
@@blaydCA Not not really. These are slightly more official than redneck backyard plans. We develop them based on the global implications of one day in November.
I learn more than I ever thought about before from your channel. As an accountant of many decades I find learning about issues of global transportation via shipping to be fascinating. The subject has more facets than a brilliant cut diamond and apparently just as expensive.
An idea to help kickstart shipbuilding in the US again. First is subsidize, but second: the US government orders a variety of cargo vessels from US shipbuilders, enough to bring prices down and even spur shipyard growth, then leases or lease-to-owns them to US based shipping firms. The cost to the government gets recouped during the lease and the cost to the shipping firms gets spread out over the lease payments, if the vessels aren't picked up by shipping firms then they can be transferred to the navy or naval reserve as logistics vessels (I just finished this before hearing you suggest something very similar....lol)
I think nuclear-powered shipping is a great idea, but it does have one serious political problem, a lot of countries still don't allow nuclear-powered ships in their ports. I think nuclear power actually makes more sense in the US coastal trade in the short term because nuclear technicians and infrastructure are pretty expensive, but the cost differential isn't going to be as big in the US as it would be internationally, and smaller ships would benefit more because they use way more fuel per ton-mile. also maybe having nuclear-powered commercial ships would bring back nuclear-powered surface combatants and icebreakers, both of which would be extremely valuable.
Leasing out Nuclear mini-reactors . Turbine driven ships tend to be faster ships of the 18-25 knot range for best efficiency and best demonstrated, what now are considered the smaller type cargo ships 12-45k ton range. Quad expansion is just about as efficient in the lower range of 12-17 knots.
Living in the mid-west just off of the Ohio River where a huge amount of grain gets loaded onto barges in the Evansville, IN area. Every midsize farmer has 3 or more semi-trucks hauling their grain there because the price they get is much more than local area elevators. There is coal going down the Ohio in addition to grain. Many years ago barges were small barges manned by a few men who polled them along. They went down the Ohio, Mississippi, to New Orleans where the barges were taken apart and sold as prime lumber. Today whole strings of barges, are towed (pushed) by a boat with maybe 12 hands. That is great for coal and grain except for one reason. Those steel barges have to go back upriver. That costs $$ to move empty barges and I suspect the charge for going downriver pays for the return of the barges upriver. BTW, the river south of the confluence of the Mississippi and the Ohio was misnamed. The Ohio is the greater of the 2 rivers in most categories so it should be the Ohio all the way to the Gulf of Mexico. One sees why it is called the Muddy Mississippi when at the confluence at the south tip of Illinois. Much of the upper mid-west farmlands come down the Muddy Miss.
While I have strong feelings about the Jones Act, I dont have trouble with keeping the current regulations on inland waterways, but it makes thing more expensive for places outside the lower 48. Can we kill it for Hawaii, Puerto Rico, and other island territories? It would be betrer to directly subsidze shipyards and cargo carriers for US built and crewed vessels.
Sal, Fincantieri has two shipyards on the Great Lakes. One in Marinette, MI builds Navy ships like the LCS and the Constellation frigate. The other shipyard is across Green Bay in Sturgeon Bay, WI it builds and repairs merchant ships. It built the Mark W. Barker.
Hi Sal, Thank you for a very informative video! I hope the secretary of transportation will acknowledge your ideas and put them into action with the help of Congress if need be.
On Matson ships there are 5 unions. MM&P, MEBA, MFOW, SUP and SIU. Most everyone understand what is your responsibilities are and what theirs are. The only problems we had, was with ILWU.
European observer here, can't agree more that restrictions on trucking are a must for moving cargo onto other modes. Our roads here are also jam packed with long distance freight, but the combination of low cost (costs for the roads are basically forked over to the taxpayer) and convenience of road haul means that other modes are languishing and there is no incentive for much needed infrastructure upgrades.
@@wewillrockyou1986 I can’t see the Trump administration supporting this. Certainly not Musk. They will be lying to cut expenses unless it is the border wall.
Thanks for the great video. Learned a great deal about the sate of shipping in the US. How the US has allowed our industrial might go to rust is heart breaking.
two days after the opening of WW2 in the pacific, my uncle was on a small tanker on the west coast that was attacked by a Japanese submarine the first shot was to shoot down the radio mast to keep the ship from calling out, and the first mate and my uncle together restrung a radio antenna and received a medal for that, and also saving some of his shipmates when they abandoned the ship. I was in the Navy at sea, and navy, merchant marine, coast guard, we are all the same, and learn the beauty and danger of being at sea. bless the veterans.
As an ex ships engineer I can assure you that the U.K. which used to have the second biggest Merchant Navy and a huge Royal Navy now struggles to crew ships. I’m not surprised modern container and oil tankers are in and out of port in around twenty four to thirty six hours. You never break watch. In the day I done a nominal six month trips and at its worst was off the ship for three hours in the six months. I was with Shell.
Man are you ever correct about some of these issues. Our company was full of Naval veterans, and almost all of them were stolen by the Oil & Gas Industry. We were on the west coast, so they all went into Indonesia or Alaska. This will be a continuing problem, and unless the unions can compete with the foreigners, the offshore ships will still be under-competitive.
16:50 interesting. I travel this route routinely. I never noticed no container trucks. I do notice the port of richmond seems pretty busy. Now rt 460 from HR westbound...that's container traffic heavy!
@@bmitch3020 non-hazard material trucks can transit the tunnels, height clearance apply (e.g., 13 feet 6 inches height limit at the Hampton Roads Bridge-Tunnel)
Great job. Thank you. Very informative. How about this idea? Let's lobby both major parties to help start these ideas by showing how each state benefits from the economic and job benefits of economic growth. So both senators can co-sponser bills, and Congressmen and women can illustrate how their districts benefit using both major parties. Bipartisan efforts where everybody gets support from voters and politicians. A little Old School Idea of mutual benefits for all. Americans for America!
I love this, every election is an opportunity and I'd love to see almost everything here put in motion. How can we float Sal to the surface in the right way? I'd also love to see a retrospective on the Biden admin, an executive on it's successes and failures to better understand what we can build off of.
Sal, Good video. I agree with many of your ideas, and I have problems with others. I am a fan of the Jones Act in that I spent the majority of my career dealing with Jones Act tankers. A few key points, first the shipyards that built LNG carriers in the US are no longer in the business of commercial shipbuilding, or out of business altogether. Next, I am not convinced commercial shipbuilding for large commercial vessels in the US is viable. If you look at the major shipyards that no longer build large commercial vessels, you have Ingalls and Newport News. If you look at the shipyards that built seagoing commercial that are no longer in business you have Avondale, Bethlehem Steel, Quincy, Sun, and Todd. Today you have two commercial builders in NASSCO and Philly. I am surprised that you overlooked bulk carriers as potential US flag vessels. We export grain, fertilizer, coal, and scrap metal. I don't think too many US bulk carriers. One area that was missing from your list was the role and responsibilities of the USCG. It is asking a lot of them to protect our coastlines, license and inspect vessels, enforce immigration, handle aids to navigation, manage vessel traffic, participate in the IMO, manage spill response, search and rescue, and protect the north and south poles. Bob
At 10 minutes, 30csecond point, you stated that "you don't tend to see foreign truck drivers in the United States." This is disputable. I work EMS in a district with a major US Interstate route running through, al9ng with several truck stops AND rest areas. Many foreign drivers traverse pur country, with many relying on Google translate to communicate.
How many are Sikhs from India? In Canada our trucking industry has come to be dominated by them, because we have this "Temporary Foreign Worker" program (to alleviate labour shortages in certain industries) and almost all the TFW's doing trucking are sourced from there. It's not like they are especially keen on it or good at it (some are terrible drivers, tbh), but immigration connections being what they are, it started small then got huge. Perhaps the US has something similar, or perhaps a portion of the Canadian TFW truckers are also able to do cross-border trucking into the US.
“Not an expert by any means!” Is a sailor. Is a prolific commentator in this arena. Is a PhD. and professor. Sal, if you’re not an expert, who is? 😂 Love the content - keep it up! Always learn a ton from your work.
The US currently has the largest LNG export capacity in the world. Currently permitted, we're slated to double our capacity with the starting point of the highest in the world. Continuing to permit more LNG export is just a silly way to create stranded assets, building and crewing ships makes much more sense. US gas production is near peak, fracking has become more efficient but we're drilling risers closer together and wells suffer diminishing returns after 50% depletion. CH4 is ultimately a limited resource and currently permitted export terminals would require the US to reduce gas use at home. In August 2024, the US consumed 84.9% of its production, exported 20%, and imported 8.1%. We're already importing gas to meet demand, drill baby drill is great, you can extract more methane by investing more capital. That raises the price of gas extracted to offset the cost of capital and decreases the output of nearby wells - gas between 2 pipes is pulled in both directions and extracts more slowly. To export it, we need to spend energy to liquefy the gas and then load it. Liquefying costs a huge amount of energy, 43.1% of which comes from natural gas. To fill the currently permitted export terminals, the US needs to remove 3/4 of natural gas power plants (or just remove a 2/3 and completely ban gas heating of homes and commercial businesses). To fill the possible permitted projects that have been currently rejected - another doubling of current capacity, for a total of triple if you include already permitted - the US needs to completely eliminate gas from electricity consumption and all homes/businesses (and/or cut some going to industrial production). This is massively impractical. I want a mass scale nuclear buildout combined with wind, solar, and limited storage (turbine, pumped hydro, and battery) for the purposes of decarbonizing. I acknowledge that's not going to happen under Trump, unfortunate. But it also means the LNG export boom will top out at roughly double current capacity. Again, this is from the starting point of highest LNG export capacity in the world. It makes no sense to approve further permits.
@wgowshipping Great points, as usual. I do have a quibble regarding your remark at 10:19 that we have foreign-built trucks operating on US highways. For the most part, the foreign brands found on US roads (e.g. Volvo) actually are built in the US, or Canada/Mexico under the USMCA. As far as I can tell there is virtually no volume importation of heavy semi trucks or straight trucks (Class 7/8) from outside the USMCA. Most of the commercial trucks imported are in Class 4-5-6--think Ford F450/550 size trucks, not Kenworth/Peterbilt over the road trucks.
Great ideas. Hope they will be acted on. I always told my union that I was available after I retired, but my license expired and trying to get it renewed by USCG is a horrific night mare. .
As a boat nerd, the great lakes bulk vessels are very long lived by comparison to ocean vessels. Some of them are easily 60 years old and going strong! It's incredible actually! I'd love to see more vessels built but I don't think there's a need; there are several laid up long term as there aren't enough cargo runs to make it worthwhile to get them out of storage.
During WW2 I believe much of the non-military shipbuilding was out west. Even managing to out build the east in ship tons built, just they weren't fighting ships. Compound that with the aircraft industry, agriculture, and extensive military... No, a decision was made, all federal support and funding was to be distributed outside of the West. All military spending preferential East and base closures preferentially West. No federal loan deals for California or any special tax treatment. Special tax breaks and loans would be made for relocating businesses outside of California. The effort was to redistribute the jobs and economy of the west coast wherever possible. You could combine that with the glut of ships available after the war. It would be years before more tonnage was needed, so the extensive shipyards were not required and the west could be wound down. Shipyards that built warships were to be protected where possible. A strategic requirement. You might be able to refurbish something on the Great Lakes or expand something in Texas to build ships. The west would be an uphill fight with Federal resistance, not just the lack of funding as only the history and some dry docks remain. The military "cost plus" yards very impractical adding their 3X+ to total build costs. -- On pondering a US ship servicing US Islands and Alaska. The mix of items.... Containers yes, but they need a roll-on/off that can handle big trucks, farm tractors, heavy equipment, and cars, add some extra cabins for passengers, and decks that could handle either forklifted items or livestock. It would be an interesting study to design a such a mixed up ship but it would be also something that could also respond at need with a number of build changes. If the kitchen, meal service area, medical bay, fresh water, power generation, and machine shop were oversized and better electronics fitted, either military needs or a natural disaster could be responded to just by a change in load. Logistics, when not everything in a load has to fit any one set standard... It would find regular work and some profit, but not lots. One of those "more could be made if" problems. That investing in this could make OK money, provide needed jobs, and be the right thing to do. Other things you could invest the same money in would make more, so it does seem unlikely. Be an very interesting person that could get investors, banks, trade unions, and the government to agree on and then do it to a sensible budget. More unusual even that such a ship IMO.
Not quite what I was thinking but the French have the Aranui 5 mixed passenger/cargo ship for island hopping. No Ro-Ro or specialized container section but it does have cargo and those specialized passengers referred to as tourists. So, tourists are flown in and shipping cost between islands is partially subsidized. Was thinking of something more utilitarian but needs for the different routes, financing, and government backing seems to have produced their own unique spin.
Sal, here in South Africa we have our own version of localisation legislation (Broad-based Black Economic Empowerment) which applies to all businesses who wants to do business with government and/or requires a government issued licence to operate such as mining. Though the rationale behind this is different to that for the Jones act, it has similar economic effect of being a sort-of tax on doing business in SA. But unlike the Jones Act which apply absolutes (either your 100% US in everything or your not - no 90% or 80% US made/operated), It uses sophisticated grading system to score each business, and this grading is done every year or two, gets audited regularly etc. Other countries have their own laws & systems to prioritise, protect &/ develop their own industries but being mindful of the costs & unintended consequences.
This was profoundly interesting and completely absorbing. I know nothing about maritime shipping and have never even been on a boat other than a rowboat. I watch this channel because it seems to me I should have a cursory knowledge of what is discussed here. I've heard radio talk show Hugh Hewitt discuss some of what was covered in this video with Congressman Mike Waltz.
Thanks for the video Sal. All great recommendations. A few things you didn't cover that I think the new administration needs to tackle: 1. USMMA has got to get its house in order. the issues with sea year are destroying its reputation (as an aside, I've never understood why USMMA didn't get a National Security Multi-Mission Vessel) 2. recapitalizing the MSC fleet, which could help revive shipbuilding 3. Not civilian maritime, but worth saying, the Coast Guard needs some icebreakers!
Since I subscribed to "What' Is Going On With Shipping", I get a bunch of Hawaiian Shirt adds.
I get regular Bab al-Mandeb brandy ads..... all those sailors needing liquid courage?
There are ads on YT?
😂
Aloha Shirts my tourists friends. Aloha Shirts...not Hawaiian Shirts. Lol...Aloha nui.
Go for it...
"I'm not an expert by any means" then proceeds to be an expert on global maritime transportation,,, you can never fool us, Sal
Yes, he merely has 30 or 40 years experience of practical experience and teaching. Amateur ! 😂
@@wyldhowl2821 Ah yes the classic appeal to authority. Ignore what all the economists say about the negative effects of the Jones Act. Honestly he lost me the moment he compared coastal shipping to trucking....
Make Ship Building in America Great Again...
Excellent content!!
Somehow, I can not envision such an ideas! Can anyone? 🤣 Sad, not laughable, sorry. 😒
I propose "Make Living in the U.S.A. Great Again"
(there is more to life than Empire Building)
tariffs are IMO not the way to go about it. Automation and union power breaking probably are.
The US shipbuilding industry is pretty much propped up by military construction and repair. The civilian shipbuilding industry hasn't been great since WW2.
@@seeking70 Because of lack of U.S. government subsidies. Which China does strongly subsidize.
Sal for Transportation Secretary !!!!
That's not a bad idea!!
Amen 🙏
That's the best idea I've seen posted on-line this week...which is why it'll never happen.
Or the MARAD, although the mayor of South Bend, Indiana managed to be the Secretary of Transportation.
I still nominate Sal for Maritime Secretary, any seconds?
Going by the first term Trump only hired rich people or attractive women. I dont see how Sal qualifies for either one?
@@brianjonker510 In the first term Trump did hire some competent people- Sal would definitely be in that group! But Most were fired or left. This time it will all be yes men or really YES women.
Taking politics out of it I would suggest the new administration to seriously look at Sal as either our consultant or a position somewhere.
No. you need a political animal on that spot, one who can move the laws trough the bureaucratic mazes, know how to play the Game of Thro... Lawmaking. but they need people like Sal as their advisers. people who will be advising without having to leave after 4 years. ;)
I think you mean Transportation Secretary...that said it would be a mixed blessing. Sal probably excellent in that position but that means the channel tanks which means that his voice would be lost as an honest critic of the administration's policies. That said it would be great to see him in the White House wearing the Hawaiian shirt of the day.
One thing I struggle with, is, why do elected officials do not see the strategic importance of US shipbuilding.
Congress people tend to focus on their District's or State's local affairs. Maybe that's why they just give it over to the Navy with its national focus to do many things in this area.
They just follow a script...it takes a certain type of person who wants the security of the US Government behind them.
You mean someone like the lovable Ms Victoria Nuland?
@@user-mp3eq6ir5b to be honest, I'd rather someone like her, who is passionate about her love of country, than someone who is selfish and only wants to line their own pockets.
Elected officials is a very broad term.
Your right about the political adds thank goodness they are GONE.
With conections in the American TV/Radio spear:
A lot of TV/radio stations are built around election adverts becuse otherwise they all go bust otherwise - TV and esp Radio margines are so thin and adverts outside election times pay so little they use the bump from election adverts to stay in business or even invest/pay off debt - A lot of radio station get brought sold with the year up to the mid terms.
I sure hope.
I could cry from relief.
IF you think only Americans get political ads, you;d be mistaken. Here in Canada we get them too, and they are for our politics. Some of them for people I fucking HATE, and there is no way to get rid of them. If only one could click "do not recommend" on the ads as well as the videos !
You are a great presenter. I enjoy watching you. You are interesting and no bs shows. Thank you for all you do
Yes, this topic is fascinating. Sal is Fabulous. 🤩 No one else informs us of critical shipping information.
A great podcast! I learned more from this podcast about American shipping and trandport of goods than I have seen or read in the last 40 years. (I am 76)
We are all lucky to have you Sal. You are a giant asset to the world. I hope your recommendations are welcomed and appreciated. ….Tom
One of the big troubles is not enough information for younger folks so many don't even know seafairing is an option. I also agree that these cruise lines that make so much money of this nation but they employ almost no USA mariners the skilled positions officers, engine room crew, they profit so much of us they should be made to employ our folks for good wages.
As a cal maritime cadet they are definitely starting to see the benefits of having American seafarers. They are showing their face a lot more recently.
A rule the Cruise companies would like to see go away is the one where a ship has to visit a foreign port before a us port, I E. Cruise out of seattle, the ships have to go to a Canadian port before a U.S. port. Usually on the return leg they go into Victoria before going back to Seattle.
If US ships no longer had to make stops at our Canadian ports on the way to Alaska, why would we in BC then allow them to use our very scenic inside passage route to go there at all? We have sovereignty over our own waters and could just say "ships that do not stop in Canada have to go out the Strait of Juan De Fuca to the open Pacific ocean, and then travel north only outside our 12 nm limit" - going way out to sea like that would make the journey between Seattle & Alaska a lot less appealing. Plus the cargo haulers who also wind the same route carrying things like vehicles and towed barges full of fuel would not be happy having to take the outside route as well.
@@wyldhowl2821 always good to know an unintended consequence.
@@wyldhowl2821wouldn’t this violate Innocent Passage treaties though?
@@justinaubin5174 Not knowing the exact text of those treaties, I have no idea. However, as all the cruise ships and definitely things like towed fuel barges pose a pollution risk in the narrow waters, in the name of risk reduction (risk vs. benefit analysis) one could still probably do it. The waters of BC are Canadian, we have the sovereign right to direct ship traffic where we wish, and it is not like it would result in Alaska being inaccessible, therefore not like a blockade.
@@justinaubin5174 "violate treaties" are you for real, what do you think the next 4 years will look like?
I would like to see Sal as the US Transportation Secretary.
Sal, this is excellent. I would be very happy (and not surprised) if you found yourself in a position in the administration.
Those shipbuilding stats are especially frightening.
More like revealing!
I’d be surprised. Politicians in general do not look around for good advice.
@@russbell6418 Especially the incoming one; loyalty is the top prerequisite.
One advantage of increased ship building in the US is that it would make the maritime steel production companies viable. Those semi-specialized steel works that make the steel for ships are barely viable. Trump noted this as he banned the substandard steel coming in from China first directly and then via Canada, Mexico and Brazil.
I read in G Captain that our Navy also needs help badly, as well as our CG.
I look forward to the changes. Thank You for your videos.
just remember the definition of an expert is as follows: x is an unknown quantity and a spurt is a drip under pressure
"Ex is a has been and spurt a little drip" is how I heard it.
Ha ha!😊
The USA should change the laws to prefer its own shipping. And it should not disadvantage water shipping over road, rail, or air.
It's already using its own shipping for coastal and domestic traffic and between Hawaii and Puerto Rico. There's not enough to sustain international trade.
@ I think we should up the ante. If the world wants to use the USA as an export market, they should be forced to use our shipping.
@blafonovision4342 the US doesn't have shipping to offer.
@ well then, we have a problem.
@@blafonovision4342and the American consumers will pay for that ?
I think the biggest obstacle to overcome with all you great ideas is : Where are we going to get the labor to do all this? As you said , not enough is being done in our school systems to promote a career in maritime. Most US kids today are under the impression that they will be able to sustain a livelihood by simply sitting at their keyboards making YT videos ( no pun intended ) or door dash meals and magically earn an income that will make them rich. I'm willing to bet that many high school graduates don't even know what maritime is.........A time to get married, or what? Let's all sign up for MAMGA movement. ( Make American Maritime Great Again ) 😁 Great video as always Sal.
A river cruise on the Mississippi costs twice as much as a river cruise in Europe. Jones Act. Fine, don't throw the whole thing out but we have to loosen the grip...At least allow foreign manufactured ships...they can still be US owned and operated.
I'll admit that I wrote this before watching the whole video and Sal mentioned the same idea...if only....it sure would be nice. That can even potentially help the us industry by strengthening the ship owning companies. More and bigger customers might start looking at domestically produced ships if a legitimate advantage can be found, not just legal compliance.
Mahalo to SM for giving us some constructive election related content.
I am definitely in favor of modifying the Jones act to amend the US Built requirement. We can even compromise like you suggested and only include ships manufactured in certain countries.
Thanks for brining up the importance and opportunities of “coastal freight” and “shipbuilding” to Hawaii and Alaska.
I would have never thought I would be able to understand and follow someone so intellectual. You make it easy and help me feel smarter than I am.
I appreciate it.
IMO You deserve to be an advisor.
I am relieved the election was decisive. Otherwise it would be chaos.
It delays the chaos for a few weeks.
Prepare for the worst!
@@blaydCA Dems said this morning they have eight impeachments ready to go.
@@poowg2657 it's all about unity, huh? 🙄
@@poowg2657
I'll be stocking up on coffee, toilet paper, chocolate and seeds for a vegetable garden while I can. LoL
Enjoy the honeymoon. I hope it lasts!
You’d make a great Secretary of Transportation!
I dig listening to you to get the picture of commerce I’ve known little about
My Dad left working at Bethlehem Steel shipyards at the end of WWII and moved to Detroit in the Auto industry.
Your name needs to be on the list for a Trump cabinet maritime trade position! Let’s make it happen!
After his last cabinet, I wouldn't wish that on Sal. But he is needed.
That is such a tough call- the country needs Sal, but we are asking him to make the ultimate sacrifice of his reputation!
Sal for president 2028 !!
Oh spare me, puhh-leeze!🙄Sal is smart. If you honestly think that he voted for that empty, < 60 IQ, kackling nasaly pantsuit for POTUS... I've got a bridge to sell you!🤦🏼♂️
The cabinet is full of people who have no idea what they're doing, he's disqualified for being qualified
Sal, I feel that just like the auto industry if we didn't want change we would still driving a Model A. If we want to be a player in the maritime industry we need to address the handling of ships cargo problems. There has to be changes in the industry and ship building. I understand much of the information that your videos tell, thank you for the work that you do.
11:02 Who am I to disagree with a guy who uses "canard" in his proposition? 🦆 Thanks, Sal!
This was a good little dig into the jones act, but I'm still looking out for that full video of your jones act reform proposals!
We have a ton of sailors experienced in running shipboard reactors, but they're all on Aircraft Carriers and Submarines. To get seafarers, get the Coast Guard to start recognizing the relevance of Naval Service and Sea Time...
In general Navy people do not work with Commercial Vessels.
@@bobcornford3637 please explain what you mean. Navy people sail on Navy ships, but sea time is sea time, and experience is experience.
As one who spent 4.5 years as a naval officer, then another 33 years in the Merchant Marine, I can attest that Navy and Coast Guard sailors are woefully unprepared to work aboard merchant ships, at least on the deck side. They have zero experience working cargo and anyone above E-4 becomes a supervisor and no longer does any actual work.
@JoeSmith-op6qf as an engineering guy, I think the job is pretty much the same...screw turning, lights burning..
@@michaelmeehan9083 I agree.
It is absolutely idiotic that it is so expensive to ship between the west coast and Alaska. It would change the world if we could get shipping costs to Alaska under control. It would also really change things if we could ship oil to our own refineries. None of this makes any sense. I understand that the point of the Jones act was to protect US ship building but it obviously failed in that regard. I agree. We need to fix the problem. The first step is for everybody to agree that there is a huge damn problem.
What do you think about the potential of developing the Red River to transport bulk cargo from the I-35 Corridor north of DFW to the Mississippi? That would open up North Texas, Oklahoma etc.
They could build another pipeline for a fraction of the cost of dredging the Red River to navigable depth.
Sal, thank you for your service. This is excellent.
The Puerto Rican stop can be one of many .
All those islands can benefit from cheap , clean LNG for their power plants .
Brilliant episode 👍👍🇺🇸🇺🇸
Great stuff to watch while having my Saturday morning breakfast.
Spent yesterday further refining our "Trump contingency plan" and shelving the "Harris contingency plan".
You've got a scant few weeks to complete your bunker and provision it properly.
@@blaydCA Not not really. These are slightly more official than redneck backyard plans. We develop them based on the global implications of one day in November.
Which was longer? !!!
Thanks for the broad view of shipping. Esp the travails of USCG licensing for mariners. Go Sal!
WOW!. Superb episode. I learned so much about world and US shipping watching this one. Even landlocked Edmonton Canada is parts of this topic!!.
Thanks ; that's why we love you, you've been on DECK !
I learn more than I ever thought about before from your channel. As an accountant of many decades I find learning about issues of global transportation via shipping to be fascinating. The subject has more facets than a brilliant cut diamond and apparently just as expensive.
An idea to help kickstart shipbuilding in the US again. First is subsidize, but second: the US government orders a variety of cargo vessels from US shipbuilders, enough to bring prices down and even spur shipyard growth, then leases or lease-to-owns them to US based shipping firms. The cost to the government gets recouped during the lease and the cost to the shipping firms gets spread out over the lease payments, if the vessels aren't picked up by shipping firms then they can be transferred to the navy or naval reserve as logistics vessels
(I just finished this before hearing you suggest something very similar....lol)
It’s time to bring back. The merchants marine is a profession along with aviation as well.
I do really like what you have to say. I think you are very knowledgeable. We need 1000 just like you to fix our maratime problems.🤩🤩
I think nuclear-powered shipping is a great idea, but it does have one serious political problem, a lot of countries still don't allow nuclear-powered ships in their ports.
I think nuclear power actually makes more sense in the US coastal trade in the short term because nuclear technicians and infrastructure are pretty expensive, but the cost differential isn't going to be as big in the US as it would be internationally, and smaller ships would benefit more because they use way more fuel per ton-mile.
also maybe having nuclear-powered commercial ships would bring back nuclear-powered surface combatants and icebreakers, both of which would be extremely valuable.
I think the ban mostly had to do with military/naval ships carrying nuclear weapons~ as they could never cobfirm or feny.
Leasing out Nuclear mini-reactors . Turbine driven ships tend to be faster ships of the 18-25 knot range for best efficiency and best demonstrated, what now are considered the smaller type cargo ships 12-45k ton range. Quad expansion is just about as efficient in the lower range of 12-17 knots.
I'd love to put my steam license back to work. Hate the rattling noisy dirty PITA boring labor intensive diesel fuel squisher ships.
Jobs, Jobs, Jobs !
Steamfitters, Welders, PipeFitters, Carpenters, BoilerMakers, Electricians, Navigation Electronics, Propulsion, Fire Remediation, Merchant Marine Officers & Crew, etc…
Living in the mid-west just off of the Ohio River where a huge amount of grain gets loaded onto barges in the Evansville, IN area. Every midsize farmer has 3 or more semi-trucks hauling their grain there because the price they get is much more than local area elevators. There is coal going down the Ohio in addition to grain.
Many years ago barges were small barges manned by a few men who polled them along. They went down the Ohio, Mississippi, to New Orleans where the barges were taken apart and sold as prime lumber. Today whole strings of barges, are towed (pushed) by a boat with maybe 12 hands. That is great for coal and grain except for one reason. Those steel barges have to go back upriver. That costs $$ to move empty barges and I suspect the charge for going downriver pays for the return of the barges upriver.
BTW, the river south of the confluence of the Mississippi and the Ohio was misnamed. The Ohio is the greater of the 2 rivers in most categories so it should be the Ohio all the way to the Gulf of Mexico. One sees why it is called the Muddy Mississippi when at the confluence at the south tip of Illinois. Much of the upper mid-west farmlands come down the Muddy Miss.
While I have strong feelings about the Jones Act, I dont have trouble with keeping the current regulations on inland waterways, but it makes thing more expensive for places outside the lower 48. Can we kill it for Hawaii, Puerto Rico, and other island territories?
It would be betrer to directly subsidze shipyards and cargo carriers for US built and crewed vessels.
Sal, Fincantieri has two shipyards on the Great Lakes. One in Marinette, MI builds Navy ships like the LCS and the Constellation frigate.
The other shipyard is across Green Bay in Sturgeon Bay, WI it builds and repairs merchant ships. It built the Mark W. Barker.
Hi Sal, Thank you for a very informative video! I hope the secretary of transportation will acknowledge your ideas and put them into action with the help of Congress if need be.
On Matson ships there are 5 unions. MM&P, MEBA, MFOW, SUP and SIU. Most everyone understand what is your responsibilities are and what theirs are.
The only problems we had, was with ILWU.
Great presentation. Thank you we want and need jobs, we want to be independantly sustanable however possible. Well worth looking at carefully.
European observer here, can't agree more that restrictions on trucking are a must for moving cargo onto other modes. Our roads here are also jam packed with long distance freight, but the combination of low cost (costs for the roads are basically forked over to the taxpayer) and convenience of road haul means that other modes are languishing and there is no incentive for much needed infrastructure upgrades.
@@wewillrockyou1986 I can’t see the Trump administration supporting this. Certainly not Musk. They will be lying to cut expenses unless it is the border wall.
Really good talk…… thank you. I hope the right people listen……
YOU the man Sal . Cheers and God bless .
Thanks for the great video. Learned a great deal about the sate of shipping in the US. How the US has allowed our industrial might go to rust is heart breaking.
two days after the opening of WW2 in the pacific, my uncle was on a small tanker on the west coast that was attacked by a Japanese submarine the first shot was to shoot down the radio mast to keep the ship from calling out, and the first mate and my uncle together restrung a radio antenna and received a medal for that, and also saving some of his shipmates when they abandoned the ship. I was in the Navy at sea, and navy, merchant marine, coast guard, we are all the same, and learn the beauty and danger of being at sea. bless the veterans.
Excellent points.. I forwarded this to my boss who is a small, family owned shipbuilding company on the FL Gulf Coast
As an ex ships engineer I can assure you that the U.K. which used to have the second biggest Merchant Navy and a huge Royal Navy now struggles to crew ships. I’m not surprised modern container and oil tankers are in and out of port in around twenty four to thirty six hours. You never break watch. In the day I done a nominal six month trips and at its worst was off the ship for three hours in the six months. I was with Shell.
Man are you ever correct about some of these issues. Our company was full of Naval veterans, and almost all of them were stolen by the Oil & Gas Industry. We were on the west coast, so they all went into Indonesia or Alaska. This will be a continuing problem, and unless the unions can compete with the foreigners, the offshore ships will still be under-competitive.
You are an amazing resource sir, I'm hooked on your channel. So informative.
Thankyou.
16:50 interesting. I travel this route routinely. I never noticed no container trucks. I do notice the port of richmond seems pretty busy. Now rt 460 from HR westbound...that's container traffic heavy!
That confused me too. Pretty sure tractor trailers on I64 are allowed, but maybe not through the tunnels.
@@bmitch3020 non-hazard material trucks can transit the tunnels, height clearance apply (e.g., 13 feet 6 inches height limit at the Hampton Roads Bridge-Tunnel)
Hope you get the job Sal!
Great job. Thank you. Very informative. How about this idea? Let's lobby both major parties to help start these ideas by showing how each state benefits from the economic and job benefits of economic growth. So both senators can co-sponser bills, and Congressmen and women can illustrate how their districts benefit using both major parties. Bipartisan efforts where everybody gets support from voters and politicians. A little Old School Idea of mutual benefits for all. Americans for America!
I love this, every election is an opportunity and I'd love to see almost everything here put in motion. How can we float Sal to the surface in the right way?
I'd also love to see a retrospective on the Biden admin, an executive on it's successes and failures to better understand what we can build off of.
Great job Sal
You've packed sooo much in this video!
I'm watching it a second time.. and back and forth each segment to digest it..
Sal, whether you like it or not, you are an aknowledged subject matter expert (SME) in ship!
Sal,
Good video. I agree with many of your ideas, and I have problems with others. I am a fan of the Jones Act in that I spent the majority of my career dealing with Jones Act tankers.
A few key points, first the shipyards that built LNG carriers in the US are no longer in the business of commercial shipbuilding, or out of business altogether.
Next, I am not convinced commercial shipbuilding for large commercial vessels in the US is viable. If you look at the major shipyards that no longer build large commercial vessels, you have Ingalls and Newport News. If you look at the shipyards that built seagoing commercial that are no longer in business you have Avondale, Bethlehem Steel, Quincy, Sun, and Todd. Today you have two commercial builders in NASSCO and Philly.
I am surprised that you overlooked bulk carriers as potential US flag vessels. We export grain, fertilizer, coal, and scrap metal. I don't think too many US bulk carriers.
One area that was missing from your list was the role and responsibilities of the USCG. It is asking a lot of them to protect our coastlines, license and inspect vessels, enforce immigration, handle aids to navigation, manage vessel traffic, participate in the IMO, manage spill response, search and rescue, and protect the north and south poles.
Bob
Thank you, Sal.
Have a nice day.
Thanks Sal, I hope they take your advice.
Thanks for spending time on this channel i enjoy your information
At 10 minutes, 30csecond point, you stated that "you don't tend to see foreign truck drivers in the United States." This is disputable. I work EMS in a district with a major US Interstate route running through, al9ng with several truck stops AND rest areas. Many foreign drivers traverse pur country, with many relying on Google translate to communicate.
How many are Sikhs from India? In Canada our trucking industry has come to be dominated by them, because we have this "Temporary Foreign Worker" program (to alleviate labour shortages in certain industries) and almost all the TFW's doing trucking are sourced from there. It's not like they are especially keen on it or good at it (some are terrible drivers, tbh), but immigration connections being what they are, it started small then got huge. Perhaps the US has something similar, or perhaps a portion of the Canadian TFW truckers are also able to do cross-border trucking into the US.
“Not an expert by any means!”
Is a sailor.
Is a prolific commentator in this arena.
Is a PhD. and professor.
Sal, if you’re not an expert, who is? 😂
Love the content - keep it up! Always learn a ton from your work.
Thanks
Hey Sal. You make a lot of good points that a lot of of us would not understand without your input. Thank you.
I hope anyone that matters listens to you! Enjoyed the show, thanks
Comprehensive. Thanks.
Always get tingles when I hear Jones Act
Sal is a great candidate for MARAD Director
Sal..... your prostate is pretty.... 'important' (main cancer killing men). Have a yearly PSA test - it saved my dad.
The ads are for Prostate massagers.
The US currently has the largest LNG export capacity in the world. Currently permitted, we're slated to double our capacity with the starting point of the highest in the world. Continuing to permit more LNG export is just a silly way to create stranded assets, building and crewing ships makes much more sense. US gas production is near peak, fracking has become more efficient but we're drilling risers closer together and wells suffer diminishing returns after 50% depletion. CH4 is ultimately a limited resource and currently permitted export terminals would require the US to reduce gas use at home. In August 2024, the US consumed 84.9% of its production, exported 20%, and imported 8.1%.
We're already importing gas to meet demand, drill baby drill is great, you can extract more methane by investing more capital. That raises the price of gas extracted to offset the cost of capital and decreases the output of nearby wells - gas between 2 pipes is pulled in both directions and extracts more slowly. To export it, we need to spend energy to liquefy the gas and then load it. Liquefying costs a huge amount of energy, 43.1% of which comes from natural gas.
To fill the currently permitted export terminals, the US needs to remove 3/4 of natural gas power plants (or just remove a 2/3 and completely ban gas heating of homes and commercial businesses). To fill the possible permitted projects that have been currently rejected - another doubling of current capacity, for a total of triple if you include already permitted - the US needs to completely eliminate gas from electricity consumption and all homes/businesses (and/or cut some going to industrial production).
This is massively impractical.
I want a mass scale nuclear buildout combined with wind, solar, and limited storage (turbine, pumped hydro, and battery) for the purposes of decarbonizing. I acknowledge that's not going to happen under Trump, unfortunate. But it also means the LNG export boom will top out at roughly double current capacity.
Again, this is from the starting point of highest LNG export capacity in the world. It makes no sense to approve further permits.
Thanks Sal
Great information Sal. Many thanks
I got a scholarship to SUNY Maritime Academy but sadly decided to go a different direction.
Great school though.
@wgowshipping Great points, as usual. I do have a quibble regarding your remark at 10:19 that we have foreign-built trucks operating on US highways. For the most part, the foreign brands found on US roads (e.g. Volvo) actually are built in the US, or Canada/Mexico under the USMCA. As far as I can tell there is virtually no volume importation of heavy semi trucks or straight trucks (Class 7/8) from outside the USMCA. Most of the commercial trucks imported are in Class 4-5-6--think Ford F450/550 size trucks, not Kenworth/Peterbilt over the road trucks.
Great ideas. Hope they will be acted on. I always told my union that I was available after I retired, but my license expired and trying to get it renewed by USCG is a horrific night mare. .
As a boat nerd, the great lakes bulk vessels are very long lived by comparison to ocean vessels. Some of them are easily 60 years old and going strong! It's incredible actually! I'd love to see more vessels built but I don't think there's a need; there are several laid up long term as there aren't enough cargo runs to make it worthwhile to get them out of storage.
Absolutely great stuff
Thanks Sal
Outstanding report and discussion.
Well done!
During WW2 I believe much of the non-military shipbuilding was out west. Even managing to out build the east in ship tons built, just they weren't fighting ships. Compound that with the aircraft industry, agriculture, and extensive military... No, a decision was made, all federal support and funding was to be distributed outside of the West. All military spending preferential East and base closures preferentially West. No federal loan deals for California or any special tax treatment. Special tax breaks and loans would be made for relocating businesses outside of California. The effort was to redistribute the jobs and economy of the west coast wherever possible. You could combine that with the glut of ships available after the war. It would be years before more tonnage was needed, so the extensive shipyards were not required and the west could be wound down. Shipyards that built warships were to be protected where possible. A strategic requirement.
You might be able to refurbish something on the Great Lakes or expand something in Texas to build ships. The west would be an uphill fight with Federal resistance, not just the lack of funding as only the history and some dry docks remain. The military "cost plus" yards very impractical adding their 3X+ to total build costs.
--
On pondering a US ship servicing US Islands and Alaska. The mix of items.... Containers yes, but they need a roll-on/off that can handle big trucks, farm tractors, heavy equipment, and cars, add some extra cabins for passengers, and decks that could handle either forklifted items or livestock. It would be an interesting study to design a such a mixed up ship but it would be also something that could also respond at need with a number of build changes. If the kitchen, meal service area, medical bay, fresh water, power generation, and machine shop were oversized and better electronics fitted, either military needs or a natural disaster could be responded to just by a change in load. Logistics, when not everything in a load has to fit any one set standard... It would find regular work and some profit, but not lots. One of those "more could be made if" problems. That investing in this could make OK money, provide needed jobs, and be the right thing to do. Other things you could invest the same money in would make more, so it does seem unlikely. Be an very interesting person that could get investors, banks, trade unions, and the government to agree on and then do it to a sensible budget. More unusual even that such a ship IMO.
Not quite what I was thinking but the French have the Aranui 5 mixed passenger/cargo ship for island hopping. No Ro-Ro or specialized container section but it does have cargo and those specialized passengers referred to as tourists. So, tourists are flown in and shipping cost between islands is partially subsidized. Was thinking of something more utilitarian but needs for the different routes, financing, and government backing seems to have produced their own unique spin.
Sal, here in South Africa we have our own version of localisation legislation (Broad-based Black Economic Empowerment) which applies to all businesses who wants to do business with government and/or requires a government issued licence to operate such as mining.
Though the rationale behind this is different to that for the Jones act, it has similar economic effect of being a sort-of tax on doing business in SA.
But unlike the Jones Act which apply absolutes (either your 100% US in everything or your not - no 90% or 80% US made/operated), It uses sophisticated grading system to score each business, and this grading is done every year or two, gets audited regularly etc. Other countries have their own laws & systems to prioritise, protect &/ develop their own industries but being mindful of the costs & unintended consequences.
Total landlubber loving the explanations and the ideas!
President Trump should nominate Sal for a position in the Executive Branch ! He’s obviously well qualified.
This was profoundly interesting and completely absorbing. I know nothing about maritime shipping and have never even been on a boat other than a rowboat. I watch this channel because it seems to me I should have a cursory knowledge of what is discussed here.
I've heard radio talk show Hugh Hewitt discuss some of what was covered in this video with Congressman Mike Waltz.
Wow, great education resume', nice work ongoing ❤ thank you so much 😎
Establish the Merchant Marine as a cabinet position, and nominate Sal as the Secretary of the Merchant Marine.
Thanks for the video Sal. All great recommendations.
A few things you didn't cover that I think the new administration needs to tackle: 1. USMMA has got to get its house in order. the issues with sea year are destroying its reputation (as an aside, I've never understood why USMMA didn't get a National Security Multi-Mission Vessel) 2. recapitalizing the MSC fleet, which could help revive shipbuilding 3. Not civilian maritime, but worth saying, the Coast Guard needs some icebreakers!
I love your ‘think tank’ comment!