The folks at Seeking Alpha were kind enough to post my conversation starter on the state of shipbuilding in America, enfeebled as it is by external factors as well as the Jones Act.
Officially the Merchant Marine Act of 1920, it was implemented to protect US shipping interests. It prohibits, among other restrictions, foreign-flagged ships from transporting between US ports.
The Act has been a source of contention in large part because it raises the cost of both shipping and building vessels in American shipyards. Senator John McCain introduced legislation to repeal it, stating, essentially, that the Act may have served a purpose at one time but now only serves to raise costs, “The requirement that U.S. shippers must purchase vessels in the United States comes at a tremendous cost that is passed onto U.S. consumers.”
The origin of my piece was a Red Report issued by VesselsValue.com the UK-based company that is the primary source for commercial ship valuation in the world. For the complete post, click thru here.
If you’re feeling ambitious or simply seeking apha, you can read thru my take on La Quinta (NYSE:LQ) here. Spoiler; I think it’s a good long-term investment.
The statement from Senator McCain on the floor of the Senate: (video: YouTube, The Maritime Executive)