U.S. Merchant Fleet Development
Urged By Shipping Executive
At New Orleans Conference
Philip Shapiro, president and
CEO of Liberty Maritime Corp. and
Liberty Shipping Group, New York,
offered a number of prescriptions to
modernize and strengthen the U.S.-
flag liquid and dry bulk fleet when
speaking recently at a maritime con-
ference in New Orleans, La.
"U.S.-flag shipping can once
again become a dominant force on
the world's oceans within today's
fiscal constraints,"Mr.Shapiro
contended, "[and] this can be ac-
complished only as long as realistic
and politically achievable goals are
pursued."
One mechanism Mr. Shapiro
recommended to encourage mod-
ernization and expansion of the
fleet is to lower capital cost. He
remarked, "The U.S.-flag fleet can-
not at this time compete in a com-
pletely free and open system—U.S.
costs will necessarily be higher than
our foreign competitors. However,
given productivity levels, currency
devaluations, state-of-the-art ves-
sels, and union cooperation, crew
costs are really not much higher in
the United States now than in many
other countries, albeit that there
remain certain foreign crews that we
will never be able to compete
with."
To strengthen the U.S. merchant
fleet, Mr. Shapiro suggested in-
creasing to 100 percent U.S.-flag
cargo preference requirements, cur-
rently at 75 percent for agriculture
cargoes, such as P.L. 480/Food for
Peace.
"The International bulk fleet cur-
rently contains some 4,700 dry bulk
ships. The U.S. is the world's largest
bulk commodity trader and yet its
U.S.-flag dry bulk fleet numbers
barely 20 vessels. Cargo preference
is virtually the only remaining sup-
port program for U.S.-flag bulk
shipping. Without a necessary
stream of cargo to support those
ships, there is little doubt that we
would not have any dry bulk ves-
sels," he asserted.
Mr. Shapiro went on to note the
importance of a U.S.-flag fleet for
national security, stating that "the
primary requirement is that the ves-
sel be U.S. documented, and thus
U.S. manned and controlled.
"[Cargo preference] is a relatively
inexpensive method to insure a con-
stant replenishment of the fleet. I
would strictly enforce the cargo pre-
ference laws as they now exist and
would reverse the drain of prefer-
ence cargoes that have resulted from
the cash transfer program," he de-
clared.
Mr. Shapiro opposes the cash
transfer method of foreign aid to
needy countries because U.S. assist-
ance is given in cash, rather than
through the commodity import pro-
gram and project-type assistance.
He pointed out that "fundamen-
tal to giving project-type assistance
or providing aid-in-kind through
the commodity import program is
that the donating government ana-
lyzed the needs of the foreign recip-
ient ... [and] when the United States
provided the aid, the U.S. origin was
evident. The general populace in the
recipient country could see U.S. aid:
U.S.-built heavy equipment; bags of
grain with 'U.S.' stamped on it; and
commodities of all kinds arriving on
U.S.-flag ships."
He further noted that U.S. cash
assistance often enables recipient
nations to purchase foreign, rather
than American, agricultural com-
modities.
"Cash aid, with no 'buy Ameri-
can' requirement, generates no eco-
nomic activity or benefit to the
U.S.," he argued.
Tenth Maritime Seminar
Set For New Orleans,
January 10, 1991
The Tenth New Orleans Mari-
time Seminar is scheduled to be
held on January 10, 1991, at the
Bourbon Orleans Hotel, 717 Orleans
Street, New Orleans, La.
The seminar will focus on "The
Oil Pollution Act of 1990, Its Impact
Upon Underwriters and Marine
Operators in the Gulf of Mexico and
on the Inland Waterways."
Registration is scheduled for 8:00-
8:45 a.m. (fee is $250). Topics to be
discussed throughout the one-day
meeting are: "The Oil Pollution Act
of 1990" from 9:00-10:00; "Response
and Clean-Up Following an Oil Spill
Incident—Contingency Plans and
Effective Liaison with Federal and
State Agencies," 10:15-12:15; "Lia-
bility Under the Oil Pollution Act of
1990 and State Legislation," 1:30-
3:00 p.m.; "Insurance Coverage for
Oil Pollution Claims," 3:15-4:15;
and "Jurisdictional Issues Under
the Oil Pollution Act of 1990," 4:00-
5:00.
Tulane/AWO will host a cocktail
reception following the Maritime
Seminar from 6:00-8:00 at the Omni
Royal Orleans Hotel for all seminar
registrants.
The Tuiane/AWO New Orleans
Maritime Seminar will be held in
conjunction with the U.S. Coast
Guard Industry Day and the AWO
Regional Meeting in New Orleans.
The seminar is sponsored by Tulane
University Continuing Legal Educa-
tion and the American Waterways
Operators, Inc. in cooperation with
the U.S. Coast Guard.
Marine Training School
To Use S/S Annabella
As LNG/LPG Training Ship
Chemikalien Seetransport (CST)
of Hamburg, Germany, and Han-
seatic Shipping Co. Ltd. of Limas-
sol, Cyprus, have entered into a
joint venture to establish the LNG/
LPG carrier S/S Annabella as a
training ship for the training of
LNG/LPG seagoing personnel.
The joint venture stems from the
fact that the world's gas tanker fleet
is facing a dramatic shortage of
qualified seagoing personnel, both
in the officers and ratings categor-
ies. The two companies have a sub-
stantial interest in this type of ton-
nage and have decided to use the
expertise of the Hanseatic Marine
Training School in Cyprus, which
has previously conducted LPG
training courses.
It is the first time worldwide that
an active LNG/LPG carrier engaged
in shorthaul trading patterns will be
utilized as a training ship. The ves-
sel is capable of training 25 officers
and ratings accommodated in dou-
ble and single cabins at any one
course of approximately two
months' duration.
CST and HSC have agreed on a
cost-sharing formula of the consid-
erable initial and running costs.
The vessel will commence train-
ing activities in February 1991.
Zapata Gulf Names
Crawford President,
Quality Shipyards
Houston-Zapata Gulf Marine
Corporation has named James W.
Crawford president of Quality
Shipyards, Inc. in Houma, La.
As president, Mr. Crawford will
be responsible for the operation of
Quality's two shipyards, both lo-
cated in Houma. One yard special-
izes in construction and the other in
repairs.
Mr. Crawford comes to Zapata
Gulf after 24 years as vice president
and general manager of Fredeman
Shipyards in Lake Charles, La., fol-
lowed by three years as president
and CEO of its parent company,
Port Arthur Towing.
Quality Shipyards is a wholly
owned subsidiary of Zapata Gulf
Marine Corporation, one of the
world's largest international marine
offshore support companies, whose
headquarters are in Houston, Tex-
as.
ACL Appoints Butler
Chief Operating Officer
Olav Rakkenes, chairman and
chief executive officer of ACL, re-
cently announced the appointment
of Tom Butler as chief operating
officer effective January 1, 1991.
In his new capacity, Mr. Butler
will be responsible for overseeing
the day-to-day management of
ACL, ensuring budget goals, and
improving the operating and busi-
ness systems for the company.
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