Repeal the Foreign Dredge Act of 1906
thezvi.substack.com
thezvi.substack.com
The Ever Forward spent a few days in Baltimore being unloaded and repaired, and then went on to Norfolk, then New York, and is now waiting to transit the Panama Canal.
The US doesn't have huge dredging capacity because it has good deepwater ports. Compare the Port of Shanghai, where 32 km of bridges, artificial islands, and extensive dredging were needed just to get to deep water.
I suggest reading the article. Dredging the Mississippi five inches deeper would increase profits of the soybean industry alone by over $2 billion a year, IIRC. There’s a lot more than soybeans that travels on the Mississippi and reducing carrying costs would make all kinds of freight cheaper.
The big holdup on that was a deal which exempted Louisiana from the usual requirement that the state pay half the cost. Now, the Federal government is paying three-quarters of the cost.
There's a big barge lobby. Barges don't pay for US waterway use. There's a tax on fuel, but it pays maybe 10% of the cost of maintaining waterways.
[1] https://garretgraves.house.gov/media-center/in-the-news/dred...
Barges are just another way to move cargo, if lower shipping costs are worth the investment they can pay for the majority of it.
Source? The US has a massive freight train industry. We have more railroad than any other country - and almost double second place (China). I guess "overuses" is subjective, but we use commercial freight way more than anyone else.
[1] https://en.m.wikipedia.org/wiki/List_of_countries_by_rail_tr...
We don’t rank #1 by total freight, total fright miles, either of those per citizen, or percentage of fright carried by rail. We rank much worse in terms of passenger rail, or electrified rail.
Number of rail miles only really shows the size of the US not the utility of it’s rail network as we also have the largest road network. The relative lack of electrified rail demonstrates the issue, the US network is mostly single tracked which causes a lot of problems even with the total number of miles the utility of any given mile of track tends to be low.
That's always the big question though - where are we going to get the tax from. When we have a deficit and increasing debt, there using exactly extra money laying around to pay for this. Taxes need to be increased somewhere, but where depends on who you talk to.
Do you have a citation for this 10%?
I operate a tugboat company. We move barges. We currently pay an excise tax of $0.29/gallon of fuel burned on inland routes. There is no good tracking or enforcement, but the tax is there.
The Waterways Council (the barge industry's lobby) talks a lot about cost-benefit ratios of barge operations and why their infrastructure should be subsidized.[2] They argue that lower pollution and less infrastructure cost per ton mile justifies Federal spending. They're probably not wrong.
[1] https://www.cbo.gov/sites/default/files/98th-congress-1983-1...
There are some perverse outcomes. In South Florida, I see boats doing nothing but advertising, floating billboards, causing drawbridges to open. I have no idea if they are paying the excise tax.
Because growing the economy by $461 million a year grows the economy and hence tax receipts, which then can be spent on good things or on reducing taxes. Note that that’s $461 million for one industry. Reducing shipping costs has benefits that accrue to everyone who uses goods that are shipped on internal waterways or sells them, i.e. everybody. Doing things that benefit everyone is very much in the bailiwick of the government.
Growing the economy by $461M grows tax receipts by significantly less than $461M.
https://www.vox.com/platform/amp/policy-and-politics/2017/9/...
As a Houstonian, I was shocked to learn that the Port of Houston is being hobbled by our inability to dredge properly, limiting container vessels to once a week, and slowing down oil tanker shipments. There is currently only one narrow lane that is dredged, and opening a second lane would improve traffic flow quadratically.
Fact: a huge dredge ship might cost $250-300 million or more.
Problem: then buying one to do the project and then throwing it away would save money. But this isn’t being done.
I have my suspicions about how much money would actively be saved, and note a bunch of “remove any and all safeguards”.
I suggest reading the article. Under the Act all US dredges must be built in the US. A US entity buying one doesn’t make using it in the US legal.
If the savings would really be so high someone would do it.
I suspect that even with a max size dredger the savings would be minimal, if any.
American labor hours are more expensive. You can’t just import the Belgian and Dutch workers building the world class dredges at their salaries for the purpose of supplanting domestic workers.
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According to Reuters, the ports of Rotterdam & Shanghai use 5 workers to do what 20 do in US ports, which is a contributing factor to American supply chain disruption. [1] Automation & productivity gain is an increasing source of labor strife at US ports.
[1]: https://www.reuters.com/article/us-usa-ports-labor/analysis-...
Meanwhile the current US dredging companies are raking in fat profits from operating cheap low capacity ships, so they have no incentive. If you want to get in on the business the low risk high reward approach is to build a low capacity dredger, or adapt an existing vessel, so that’s what people do.
Edit: why disagree without a response? I never said it was right. I'm saying it's not impossible and has been done in the past.
FACT: I make $66K as the Assistant Foreman of the Inside Machine Shop.
I run a busy shipyard repair yard shop for Tugs and larger.
6 employees and my boss.
I make $31 dollars an hour in Norfolk Virginia USA. My salary is similar to most all shipyards in the region. I have 37 years experience in the marine environment.
Here's some more info.
https://www.payscale.com/research/US/Industry=Ship_Building/...
It'll be pretty cool if an online group of observant people manage to change this law.
A few years ago there was strong rain, and they started to flood.
The city usually opens a lock, to let a larger lake drain into a smaller lake.
Only, there was so much sediment, it clogged up the lock!
Now the city needs to spend 10s of millions on dollars to drudge the lakes.
That does seem likely to reduce bureaucracy, with likely reductions in project approval costs and potential speed-ups in environmental approval timelines. Would it have an environmental cost? I don't know. I suppose, it is possible (maybe) that USACE is more lenient than the EPA, and hence giving USACE exclusive federal environmental jurisdiction would result in more lenient environmental protection conditions and mitigations for dredging projects, resulting in greater environmental harm overall. But I don't know if that is actually true. And even if it is actually true, I'm not sure how big the quantum of additional environmental harm is going to be, or even how one could go about estimating that.
It was deliberately farmed out to private companies.
On the East Coast We keep the dredge McFarland for the crucial work. That is it..
I hear the Mississippi River has quite a few still.
> We must repeal the Foreign Dredge Act of 1906. It says, to paraphrase, no underwater digging - to repair ports, or build bigger ones, or fix waterways - unless the boat doing the digging was built in the US, and is owned and operated by Americans.
…
> The direct cost savings (as in, if we did the current set of jobs cheaper and faster) depends on the current size of the market. If we take the 5% at face value and the 11 billion worldwide size estimate here, and assume roughly 50% cost savings, we get $250 million/year. At a 5% discount rate we can value that at about $5 billion, plus the benefits of getting projects done faster, and doing more projects. Already this seems to be approaching the 1000:1 ratio where economic interventions make sense, but the real benefits are in what you do with the jobs you wouldn’t have otherwise done.
> If the estimate of 1.6 million jobs checks out, we are already talking about single digit costs per job created, which should already compare favorably with third-world interventions even without any of the additional indirect benefits, of which there are many. The impact on inflation could be substantial even within a few years.
This is a recurring pattern, and once you start paying attention, you see it everywhere. Everyone pays more for goods, so that longshoremen can enjoy union rates. Everyone commutes 10 minutes more, so that the lucky few get to live in a non-densified neighborhood next to downtown core.
I don’t ever see that happening unless Republicans control both houses of Congress and the Presidency.
This alone tends to make the rest of the article irrelevant. Not that it’s wrong, just that this is a major blocker that turns the rest of the discussion into a thought experiment instead of an action plan.
The dredge act (as linked to by the author) is short enough I will quote it here[1]:
§55109. Dredging
(a) In General.-Except as provided in subsection (b), a vessel may engage in dredging in the navigable waters of the United States only if-
(1) the vessel is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade;
(2) the charterer, if any, is a citizen of the United States for purposes of engaging in the coastwise trade; and
(3) the vessel has been issued a certificate of documentation with a coastwise endorsement under chapter 121 of this title or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement.
(b) Dredging of Gold in Alaska.-A documented vessel with a registry endorsement may engage in the dredging of gold in Alaska.
(c) Penalty.-If a vessel is operated in knowing violation of this section, the vessel and its equipment are liable to seizure by and forfeiture to the United States Government.
[1]:https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim...
Taken from the page you linked. Emphasis not in original but you’re still wrong.
Nowhere in the article does he prove this. It is just a guess from somebody who has ZERO marine experience.
He thinks he can change the world. Please work in a field before posting stupid opinions.
This article is more confident than seems warranted, but that's more tone than substance. It does seem to be based on a lot of reading, which isn't a bad way to get started at learning about new things.
(Talking excessively confidently about things you just learned something about is very common on the social media. It's kind of the house style.)
It has nothing to do with 'Labor Costs'.
Jones Act is used very liberally in lawsuits to protect ship owners against worker injury.
Dredging is not a bottleneck. Money is. You can't throw a bigger dredge at the problem. Dredges rotate between contracts. Some cities might need deeper channels other might want a wider beach.
Sand shifts on the sea floor. It is highly unpredictable. Mother nature will put sand where she wants.
Most people have no idea how abrasive sand is. Imagine sandblasting the inside of your dredge pump while its running.
That is what happens. The thing is most dredge pumps have an impeller casing of 8 foot diameter. It is a huge pump on the scale of hydroelectric pumps. But it pumps a slurry of sand. Very maintenance intensive even with hardfacing interior surfaces..
Sorry, I can't imagine sandblasting because I have no idea how abrasive sand is.
Exclusion of the US from the AsiaPac trade round made everyone else better off! The US basically screws everyone: no Australian US trade agreement in recent history has been BOOT for Australia, US states also apply random rules which nullify much Australian trade advantages: BHP was blocked from building some minerals processing in California IIRC.
A rather anti US subtext in "love actually" is based on populist common belief: in trade negotiations cross administration the US is a 900lb gorilla bully.
The push back by farming lobbies in the UK to US chicken is an unusual example of holding ground. Consumer sentiment lined-up for once. Undoubtedly ammonia rinsed chicken would be cheaper.
On food security
> not everything that Australians like to eat is produced here. So we import about 11% of the food and beverages we consume by value.
> The imports are mainly processed products (including coffee beans, frozen vegetables, seafood products, and beverages), along with small amounts of out-of-season fresh food.
https://theconversation.com/dont-panic-australia-has-truly-e...
We had local canneries for pineapple and tinned fruit, we now import delmonte and dole pineapple and soft fruit in tins. It's a significant issue. The dairy sector is concerned over concentration on the China market has meant they ignored the local market and were now importing some dairy. Potato deregulation has caused significant worsening in the sector. We do supply an awful lot of Macca's chips so there's that. Most bacon is Canadian, however we export a huge amount of pork meat to the world. Ironically we produce the wrong ratio of fat to meat for bacon and cured meat products.
That conversation article is not wrong, but it's not impartial. ABERE's main focus is food export and industrial scale agriculture, we supply a huge amount of millet and soy to worldwide markets, as well as cattle and sheep meat.
Covid cost us migrant labour and we've (thankfully) had to stop ruinously bad piecework rates and moved to income guarantees to attract longterm labour from developing economies, replacing tourism and backpacker temporary labour. It's contributed to the huge CPI price increases we're now seeing.
It might be a good time, for the US agricultural sector to seek a bilat if they argue cheaper food, but the longterm consequences would make ABERE quake in their shoes.
25% of the Australian slaughterhouses are owned by JBS, a Brazilian company.
They normally stock two different brands of Dolmades. I find it amusing that their cheap store brand is made in Greece, while the more expensive "named brand" is made in China.
I am going back tomorrow morning, to buy bacon. Now I feel the urge to check how true your "Most bacon is Canadian" statement is.
Is the overseas content Canadian? Alas, the product packaging doesn’t say. I’d think, for something like bacon, they should have to state the country of origin of the major ingredient (which for bacon is obviously pork)
One other factor that article mentioned – Australian pork is more expensive than imported pork, in part due to tougher animal welfare standards driving up production costs. The article says Australian pork farmers hope the government might change the labelling laws, to make it harder to present foreign pork as being "Made in Australia". Maybe one day it will happen.
> That doesn’t rule out a position of roughly ‘yes this is a no-good-very-bad way of limiting how much we dredge but it does limit it and that is what matters.’
> I don’t know how to engage with that perspective as anything but opposition to civilization. If you don’t think we should maintain or create ports, make it possible to navigate rivers or free ships that get stuck - which are the primary reasons people dredge - then that’s not compatible with having a technological civilization. Perhaps there are other ways to work around that and still have a technological civilization, but they are orders of magnitude worse in terms of their consequences for the Earth.
I'm of the opinion that we should learn to use our sprawling ports in the United States more efficiently rather than stacking more inefficient ports[0] across all of our coast -- especially given the tremendous ecological cost of what we already have -- and apparently that stance is defined by the author as 'opposition to civilization' and not even worthy of rebuttal.
Hard disagree.
Look around the U.S. ports and identify the bottlenecks mentioned; it's rarely marine-space related -- it's almost entirely logistical or occupational related -- bigger ports will require more employees that don't even exist in large enough quantity now to fill the roles needed even today -- and this is aside from the additional employees needed for the larger dredging operations.
"jobs created" means precisely zero in skilled trades without a captive and waiting audience -- these people will need to be trained and placed -- it can't just be spun from nothing over-night.
(I have lived in Wilmington, the number one port in the U.S. in commerce value)
tl;dr : let's fix ports rather than making more broken ports and ruining our seas.
[0]: https://www.reuters.com/world/us/california-ports-key-us-sup...
TFA is probably just part of the campaign.
I apologize in advance for this rant. My alternative idea is going to be unpopular. How about we take what we've figured our about what's causing Climate Change, where all those things actually are, and stop it all immediately, by force if necessary, and just deal with the interruption in luxury. And then we immediately figure out another way for all the things. And make the uber rich pay for it all. I mean... would it take more than 10 years to get back to where we were without killing the planet and everything on it? I could go 10 years without electricity, nearly everybody could, but it wouldn't even be remotely like that, we'd just have a lot less power for a while. Really, I feel like if the air was right now actually smokey everywhere from pollution from burning bunker fuel, and temperatures were insane, shippers would still want to dredge because they are losing money. I think the author has great points, and I like his style, I just don't give a damn about... Goddamn ships. Oh, those poor shipping companies, and those poor poor consumers.
I’m still waiting for the earth to freeze over according to the “agreed science” from the 1970s-80s.
I think that occurs immediately after fresh water dilutes the oceans and shuts down the Thermohaline circulation. Europe freezes, then everything else freezes. [1]
[1] https://en.wikipedia.org/wiki/Atlantic_meridional_overturnin...
Instead you end up with hypocritical rules against normal people like in the lockdowns where you could still travel abroad if owned multiple houses, etc. - like now how the EU has introduced fuel duty on airlines, but not on private jets.
And reducing supply lines leads to supply-side inflation like we're seeing in Europe now - 10+% inflation, interest rates going up, possible rationing coming in winter, etc. - no-one wants that.
I'd just try not to worry about it, we can't change anything anyway. Just focus on what you can do yourself, like trying to work remotely to buy a house in a less affected area, etc.
During the power crisis in Texas in February 2021 some homes and businesses were without power for several days, resulting in at least 246 deaths, with some estimates as high as 702 killed as a result of the crisis.[1]
Ah, righteo, a plan. You did write immeidately and by force, which sounded less like a plan.
In my case, that energy must be provided as electricity, or else I would starve.
Other people might be able to substitute something else for electricity, e.g. they might have access to a forest, to collect wood and burn it for cooking, and they might make food reserves that can be kept at the ambient temperature, e.g. pemmican.
Those people might not need electricity, but they are not less dependent of an energy source for staying alive, than the people who need electricity every day.
I certainly use less electrical energy every day (less than 200 W average power for the entire house) than the energy that would be consumed by someone burning wood for the same purpose.
The people who do not cook at home and are not less dependent on electricity or another source of energy for staying alive, they just pay someone else to cook for them, while consuming the same energy elsewhere.
Even if you someone magically found a way to harvest all the food by hand, How would you distribute to everyone? Without electricity our highly efficient distributions systems don't work.
I could make a plan to launch myself into outer space. Doesn't mean my plan will work. It also doesn't mean that the people that my plan will inconvenience are just okay with it.
Sorry neighbors I need to build a launch tower here I'm taking over your backyards, you can have them back in a few years its okay, its part of the plan.
Without sand suppletion some places (eg. parts of the netherlands below sea level) would not be able to protect their coastline, which can (worst case) lead to the loss of towns and cities.
A lot of operations involving the sea, coast, and sand are not one off operations. It's more a case of continuous maintenance and vigilence.