Birthplace of USS New Jersey Saved by Shale Production

Kinja'd!!! "FJ80WaitinForaLSV8" (fj80waitinforalsv8)
05/29/2014 at 10:58 • Filed to: None

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!!!error: Indecipherable SUB-paragraph formatting!!! on U.S. shipbuilding. Thank god for the Jones act.

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DISCUSSION (5)


Kinja'd!!! Cé hé sin > FJ80WaitinForaLSV8
05/29/2014 at 14:35

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This place isn't exactly competing on the open market though is it? If it wasn't for protectionism it wouldn't exist.


Kinja'd!!! FJ80WaitinForaLSV8 > Cé hé sin
05/29/2014 at 14:42

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I would disagree with you there. Japan, South Korea, and China all have a massive shipbuilding industry in their country due to large amounts of government interference in the market through non-tariff barriers. The U.S. is simply playing the same game (albeit worse since we don't have a cohesive industrial policy) that other nations are playing.


Kinja'd!!! Cé hé sin > FJ80WaitinForaLSV8
05/29/2014 at 16:00

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Indeed, half the world seems eager to protect their ship building industries. In your case you wind up with an industry that can only compete in its captive market. Take the Caribbean - full of expensive cruise liners but none of them made in the US that I know of. Surprisingly they're made in high labour cost Finland, Italy and Germany rather than the seemingly more logical Korea or China.


Kinja'd!!! FJ80WaitinForaLSV8 > Cé hé sin
05/29/2014 at 16:04

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I completely understand why people want to protect ship building for national defense reasons. I would like to read up on it more regarding the cruise ships and why they are still built in europe by and large. And you are correct exceedingly few are built in the states. The Jones act makes it difficult for cruise companies to plan routes around the US.

of interest - http://en.wikipedia.org/wiki/Pride_of_…


Kinja'd!!! Cé hé sin > FJ80WaitinForaLSV8
05/30/2014 at 04:39

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Until recently there've been only four companies with the ability to build large cruise ships - one each in France, Finland, Italy and Germany. However the French and the Finnish yards are both owned by STX in Korea who intend transferring all of the technology to their home yards - which have financial difficulties of their own - and then disposing of their European subsidiaries. They have already obtained an order for a Korean build, the first of its kind. Mitsubishi in Japan are also entering the market and have a large order for a series of ships. As to why these four builders have up till now cornered the whole market, I guess it's down to sticking to something you're good at and building up a level of expertise which is sufficiently difficult to obtain as to discourage new entrants. That and probably government handouts - the yard in St Nazaire in France has been in trouble for years and the government don't want the consequences of closure and unemployment.

There's much more of this here .