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SCA Weekly Report | March 22 - 26, 2021

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001



SCA Weekly Report | March 22 - 26, 2021





NSRIC 2021 Meeting Wrap Up


Thank you for attending the 2021 National Ship Repair Industry Conference (NSRIC) earlier this week. We had a very successful meeting with over 200 people registering to attend from across the country.


In addition to SCA presentations, we had a great lineup of speakers including:

  • A message from CNO Gilday
  • VADM Galinis
  • VADM Kitchener
  • RADM Wettlaufer
  • RDML Moore, USCG
  • RDML Ver Hage


We want to again thank American Ship Repair Company, Inc. and STI Marine Firestop for sponsoring the event.


As a follow up, below you will find the video from CNO Gilday and the slides from Paula Zorensky's SCA presentation.



Don't forget to mark your calendars for next year's National Ship Repair Industry Conference taking place on 21 – 24 March 2022 at The Westin Crystal City.




Biden to Unveil Skinny Budget in Coming Weeks  

President Joe Biden plans to unveil his initial 2022 spending requests next week to help shape congressional negotiations, and expects to release a full budget proposal in the coming months, the administration said this week. The document will include Biden’s discretionary funding priorities, broken down by agency with some additional details within them, the Office of Management and Budget said.  The scope of the Biden proposal will be closer to what former President Donald Trump released in March 2017 than to what previous administrations produced early in their first years in office. However, proposed spending increases are likely to get a frosty reception from GOP lawmakers.


Biden Eyes $3T Package for Infrastructure, Schools, Families

Fresh off passage of the COVID-19 relief bill, President Joe Biden is assembling the next big White House priority, a sweeping $3 trillion package of investments on infrastructure and domestic needs. Biden huddled privately late Monday with Senate Democrats as Congress has already begun laying the groundwork with legislation for developing roads, hospitals and green energy systems as part of Biden's “Build Back Better” campaign promise. Much like the $1.9 trillion virus rescue plan signed into law earlier this month, the new package would also include family-friendly policies, this time focusing on education and paid family leave. While the goal is a bipartisan package, Democrats in Congress have signaled a willingness to go it alone if they are blocked by Republicans.




Navy Looking to Accelerate Public Shipyard Recapitalization Efforts

The Navy is evaluating how it can speed up the timeline for its initiative to renovate aging public shipyards amid concern from lawmakers that the current 20-year timeframe is too long. As the service continues to work its way out of a years-long maintenance backlog and the nuclear-powered fleet is set to grow in the coming years with new ships that will strain outdated yard infrastructure, lawmakers argue the Navy should fast-track the timeline for the Shipyard Infrastructure Optimization Plan. While the service has previously said it must be able to renovate the yards, one of which is older than the Declaration of Independence, while still keeping submarine and aircraft carrier maintenance activities on schedule, the Navy is now assessing the potential for a 10-year and a 15-year timeframe for the $21 billion effort.




Offshore Drillers Noble and Pacific Drilling to Merge in All-Stock Deal

Offshore drilling contractors Noble Corporation and Pacific Drilling will combine in an all-stock transaction that will see Noble acquiring Pacific Drilling. A definitive merger agreement was unanimously approved by each company’s Board of Directors and announced Thursday.





IMO Publishes Greenhouse Gas Emissions Study's Highlights

The Fourth IMO Greenhouse Gas Study Executive Summary has been published. This study is the first iteration since the adoption of the "Initial IMO Strategy on Reduction of greenhouse gas (GHG) Emissions from Ships" in 2018, under which IMO Member States have pledged to cut GHG emissions from international shipping and to phase them out as soon as possible. The study estimates that total shipping emitted 1,056 million tons of CO2 in 2018, accounting for about 2.89% of the total global anthropogenic CO2 emissions for that year. The Executive Summary can be accessed HERE.


Giant Boxship, Ever Given, Could Block Suez Canal for "Weeks"

According to professional salvors, the 20,000 TEU container ship Ever Given may be stuck in the Suez Canal for days or weeks to come. Salvage experts say that the boxship's position - wedged between both of the canal's banks like a closed butterfly valve - will make this operation more complex than simply pulling a stranded vessel off a beach. The vessel ran aground and became lodged sideways across the waterway, blocking the path of dozens of other vessels. Reports indicate that as many as 100 ships were trapped in lines in both directions. An eight-tug refloat attempt on Thursday morning was not successful, according to the ship manager.


Cruise and Travel Leaders Call on CDC to Act to Resume Summer Cruises

After a year of having its operations paused due to the pandemic, the cruise industry is increasing its pressure on the US Centers for Disease Control and Prevention to lift the restrictions that continue to prevent large cruise ships from sailing from the US. The cruise line trade group, Cruise Lines International Association, called on the CDC to lift the Framework for the Conditional Sailing Order issued in October 2020 in order to allow a phased resumption of cruises from the US by the beginning of July. “The early-July timeframe is in line with President Biden’s forecast for when the United States will be ‘closer to normal,’” said CLIA. They cited the fact that the CDC’s October 2020 order called for further guidance which the CDC has yet to provide.


St. Lawrence Seaway Begins Navigation Season

On Monday, the U.S. Great Lakes St. Lawrence Seaway Development Corporation marked the opening of the Seaway’s 63rd navigation season. U.S. Secretary of Transportation, Pete Buttigieg, attend the event virtually. "Moving goods by water through the Seaway ensures trade is flowing freely between the U.S. and Canada while also reducing emissions,” said Buttigieg.



If you have any questions, please do not hesitate to contact Paula Zorensky on the SCA staff.