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SCA Weekly Report | February 28 - March 4, 2022

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001




SCA Weekly Report | February 28 - March 4, 2022





Registration Now Open: 2022 National Ship Repair Industry Conference (NSRIC)


March 21-24, 2022

The Westin Crystal City

Arlington, VA


The 2022 National Ship Repair Industry Conference (NSRIC) will be held in-person on March 21-24, 2022.The cost to attend the meeting is $550.


NSRIC 2022 is only open to SCA members and Ship Repair Association Members and is closed to the press.


Confirmed Government Speakers for Tuesday Include:


  • Vice Chief of Naval Operations, Admiral William Lescher
  • Vice Admiral Roy Kitchener
  • Vice Admiral William Galinis
  • Rear Admiral Eric Ver Hage
  • Rear Admiral Carola List, USCG
  • ASN RDA, Frederick (Jay) Stefany




SCA Industry Impacts Survey


At the SCA 2022 Winter Meeting, the Industry Partners Committee recommended, and the SCA Board of Directors approved, a survey to solicit input from SCA members on the various impacts on the shipyard industrial base including resulting lingering COVID issues, supply chain disruptions, inflationary costs and federal budget uncertainty, among other industry concerns. 


Member participation in this survey is critical to conveying these adverse impacts on shipbuilding, ship repairing, and the businesses that support and supply the shipyard industry. The results of the survey will be aggregated industry data points to assist SCA's efforts to advocate for the shipyard industrial base to the Pentagon, Administration, and Congress.


The survey should not take any longer than 5-10 minutes to complete, and all results will be blinded and aggregated. This means that all company information will remain anonymous and only viewed by the SCA team.





Wicker Says He'll Seek Armed Services Post Over Commerce

Senate Commerce Committee ranking Republican Sen. Roger Wicker (R-MS) said Wednesday he'll seek the top GOP spot on the Senate Armed Services Committee next year after current ranking member Sen. Jim Inhofe (R-OK) retires.


"I think Jim Inhofe is going to be a great leader for our side and a great teammate for chairman Reed for the rest of the Congress," Wicker said in an interview with POLITICO. "I think most people would assume correctly that someone in my situation, given that choice, would take the leadership position on Armed Services. I look forward to working with Jim Inhofe until the very end."


HASC Chair: DOD Budget Going to Go Up

House Armed Services Committee Chairman Adam Smith (D-WA), who in the past has been critical of Congress' willingness to increase the U.S. defense budget, said today the Russian invasion of Ukraine has provided a new moment of "clarity" for the Washington national security establishment that will likely lead to increased defense spending.


“The Russian invasion of Ukraine fundamentally altered what our national security posture and what our defense posture needs to be,” he continued. “It made it more complicated, and it made it more expensive.”


Smith said bipartisanship on the House Armed Services Committee, which has a tradition of bipartisan success, has surged even more since the Russian invasion of Ukraine. Prior to Russia’s invasion of Ukraine, previous reports indicated the White House would seek about $800 billion in total national defense spending for fiscal year 2023, about 95% of which would be solely for the Pentagon.


Smith, however, said the invasion would certainly change the defense topline. “The decision to invade Ukraine by Russia changes it and it’s going to go up, no doubt about it,” he said.


Lawmakers Examine Navy’s Surface Ship Maintenance and Readiness Issues

Congressional leaders worry the Navy hasn't made enough progress with surface ship maintenance, while service officials pointed to hurdles with the continuing resolution during a joint hearing today with House Armed Services seapower and projection forces and readiness subcommittees.


There is a disconnect between initiatives the Navy has introduced and problems sailors are reporting, according to readiness subcommittee Ranking Member Michael Waltz (R-FL).


Waltz discussed a Government Accountability Office report released last month that found the Navy has struggled to adequately perform intermediate ship maintenance periods and record and analyze data associated with those periods.


Vice Chief of Naval Operations Adm. William Lescher said he was not surprised to hear about these issues because the Navy has been taking a “hard look at the systemically weak performance” on shipyards and maintenance. You can view the hearing HERE.


House Committee Advances Coast Guard Authorization Bill

This week, the House Transportation and Infrastructure Committee marked up the Coast Guard Reauthorization bill. In addition to authorizing appropriations for key shipbuilding programs, the committee considered several amendments that would impact the shipyard industry.


The committee adopted an amendment supported by SCA and the Offshore Marine Services Association (OMSA) that was offered by Congressman Garret Graves (R-LA) and Congressman John Garamendi (D-CA) was adopted by a vote of 59-2 by the committee. While this is an overwhelming show of huge bipartisan support for the amendment, it would have never received a voice-vote if it were not for Congressman Jake Auchincloss (D-MA) opposing the provision and demanding the committee vote. The only other committee member to vote against the amendment was Congressman Thomas Massie (R-KY). There was strong industry support for the legislation – an industry coalition letter can be found HERE.


Commerce Committee Holds Hearing on Ocean Shipping Reforms

Senators from both parties have now lined up behind a bill, S. 3580 , that would give Federal Maritime Commission more power to regulate large container ships and prevent ocean carriers from rejecting U.S. exports in favor of hauling empty containers. Senate Commerce Chair Maria Cantwell (D-Wash.) also appears to be pushing to fast-track floor consideration of the measure, after President Joe Biden called out ocean carriers during Tuesday’s State of the Union speech . Cantwell on Thursday suggested an aggressive timeframe, saying she'd like to see it brought up "next week if we can get there." Technically the next step is a markup, but the Senate can dispense with that and bring the bill directly to the floor if leadership really wants to.







Plan for New York Offshore Wind Port Hits Major Milestone

Equinor and BP have announced an agreement to turn a historic marine terminal in Brooklyn, New York into a major regional hub for offshore wind. Under the agreement, the South Brooklyn Marine Terminal (SBMT) will be transformed into an offshore wind port capable of staging and assembling the largest and most sophisticated offshore wind components for the Empire Wind and Beacon Wind projects, along with other projects planned for the East Coast.




DOT Announces New Funding for America’s Marine Highway Program to Strengthen Supply Chains

Today, the U.S. Department of Transportation’s Maritime Administration (MARAD) announced the availability of $25 million in funding for the America’s Marine Highway Program (AMHP), which supports the development and expanded use of America’s navigable waterways and will help improve our nation’s supply chains and the movement of goods throughout the country.  


The America’s Marine Highway Program supports the increased use of the Nation’s navigable waterways to relieve landside congestion, provide new and efficient transportation options, and increase the productivity of the surface transportation system. By working closely with public and private organizations, the AMHP helps create and sustain American jobs in U.S. ports, on vessels, and at shipyards, while also improving our supply chains.


Edison Chouest Offshore Wind Service Vessel Construction Underway

The vessel, ECO Edison, is being built at multiple Edison Chouest Offshore (ECO) shipyards located in Louisiana, Mississippi, and Florida, creating well over 300 new jobs, with components of the vessel being manufactured across 12 states including Alabama, Florida, Illinois, Indiana, Louisiana, Michigan, North Carolina, Ohio, Texas, Washington, West Virginia, and Wisconsin. ECO Edison will be delivered in 2024 and will immediately provide operational support out of Port Jefferson, N.Y. for Ørsted and Eversource’s joint venture offshore wind portfolio, which includes South Fork Wind, Revolution Wind, and Sunrise Wind. Once complete, South Fork Wind, Sunrise Wind and Revolution Wind will generate approximately 1.8 GW of offshore wind power, enough to power over a million homes.


West Coast Dockworkers to Refuse Russian Cargo Effective Immediately

The International Longshore and Warehouse Union’s, Coast Longshore Division, made an announcement on Thursday that U.S. West Coast dockworkers will refuse to work any Russian cargo in solidarity with Ukraine. The union represents over 22,000 longshore workers at 29 ports on the U.S. West Coast from San Diego, California to Bellingham, Washington. Its members are responsible for moving over 16 million containers annually (as of 2019), as well as bulk cargo and in some cases tankers. The action is effective immediately and applies to “any Russian cargo coming into or going out.”




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