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A Re-emerging Market

RICHARD C. BARNARD, Editor in Chief

Westwood Shipping Line, a subsidiary of the forest products giant Weyerhaeuser Co., of Federal Way, Wash., believes it is an early entrant in a re-emerging market. This month, the freighter Westwood Pomona embarks from British Columbia for what many believe may be a pioneering voyage down the coast to the Port of Long Beach, Calif. Westwood will regularly ferry goods between the two locales in the belief that the stage has been set for a comeback of short-sea shipping.

The use of ships on short coastal routes was once a primary means of getting America’s goods to market. But shipping declined as technological advances and the advent of a national highway system enabled trucking, railroad and aviation companies to dominate the transport business.

Today, trade is increasing, clogged highways are barriers to success for many companies and rising fuel costs are changing the pricing equation. And a 2004 agreement between Mexico, the United States and Canada to foster short-sea shipping among their ports buoys the hopes of shipping advocates that their day is finally coming. Associate Editor Matt Hilburn reports (p. 10) that smaller ports are being refurbished in a few locales and even some truckers now view short-sea shipping as a bridge to new business rather than a competitor.

The comeback of this segment of the shipping industry — if it happens — must be accompanied by improvements to the nation’s infrastructure. In a blistering commentary on page 3, Navy League National President John Panneton maintains the status of America’s Marine Transportation System (MTS) “is a disaster in the making.”

The sad part of that story: there is nothing new about the deteriorating condition of U.S. harbor channels, waterways, ports and terminals. Seven years ago, a seminal assessment of the MTS by a federal task force forewarned of a looming crisis. Demands on it are rising, capacity is declining and the MTS lacks the funding mechanisms that buttress the nation’s highway and aviation systems.

Also in this issue, Seapower Correspondent Megan Scully reports (p. 6) that some on Capitol Hill want to pay U.S. war costs out of the regular defense budget rather than supplemental bills, a switch that promises to bolster defense funding but could backfire given a change in the political winds. On page 38, we have an extensive look at the Navy’s efforts to push costs out of its acquisition processes.

Enjoy.

We are eager to get your feedback. Contact me at rbarnard@navyleague.org or by mail at Seapower, 2300 Wilson Blvd., Arlington, VA 22201-3308. 

 

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