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SCA Weekly Report | August 8-12, 2022

Shipbuilders Council of America

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Washington, DC 20001




SCA Weekly Report | August 8-12, 2022







Registration for the 2022 SCA Fall Membership Meeting is now open. The meeting will be held at the Warwick Rittenhouse Square in Philadelphia, PA on October 12-13, 2022. 





Download a schedule of events HERE.





The SCA has reserved rooms at the Warwick Rittenhouse Square at a preferred room rate of $349 per night. CLICK HERE TO BOOK YOUR ROOM




The exhibition hall encourages greater interaction between SCA shipyard and partner members, offering the opportunity for members to demonstrate their product or services directly to potential customers.


If you are interested in exhibiting at this event, please review the Exhibitor Packet HERE.




House Poised to Send Inflation Reduction Act to Biden for his Signature

Today, the House returns to Washington for the expected passage of the Inflation Reduction Act, a sweeping package that aims to lower health-care costs, combat climate change, raise taxes on some large companies and reduce the deficit. Speaker Nancy Pelosi (D-Calif.) told reporters earlier this week that she expects the chamber to clear the budget reconciliation legislation (H.R. 5376), sending it to President Joe Biden.


The measure would impose a 15% minimum corporate levy on the “book income” of many companies, direct the government to negotiate a maximum price for high-cost Medicare prescription drugs, provide funding and tax credits for green energy, and extend subsidies under the Affordable Care Act.


The Senate-passed bill dubbed the “Inflation Reduction Act” — though that title was stripped during Senate debate — has gotten a positive reception among House Democrats. That includes members who previously pushed for a measure to lift the cap on state and local tax (SALT) deductions, which wasn’t included in the package.




Navy to Put $14.9 Million Toward Hawaii Watershed Protection After Red Hill Leak

The Navy plans to put $14.9 million toward helping the Pearl Harbor Aquifer, the most recent effort in the sea service’s steps to regain the trust of the Hawaiian people after a leak at the Red Hill Fuel Facility polluted drinking water. The funds will go toward creating watershed protection and restoring native forests. The goal is to address the drinking water supplies at Joint Base Pearl Harbor, according to a press release.


The announcement of the funding comes just over a month after the Navy released its Red Hill report, first leaked by the Hawaii Department of Health. In the report, the Navy said the fuel leak, which led to the contamination of drinking water, was the result of human error. 




Largest Offshore Wind Farm in U.S. Wins State Approval

The State of Virginia has given the go-ahead for Dominion Energy’s 2.6-gigawatt (GW) Coastal Virginia Offshore Wind (CVOW) farm, the largest offshore wind project currently planned for U.S. waters. CVOW will consist of 176 wind turbines to be constructed 27 miles off the coast of Virginia Beach, generating enough energy to power up to 660,000 homes starting in 2026.


The project has now received the approval of the Virginia State Corporation Commission (SCC), affirming the project meets all Virginia statutory requirements for rider cost recovery and the issuance of a Certificate of Public Convenience and Necessity for the onshore infrastructure. The order also includes a performance requirement but does not outline the details.


California Sets Big Offshore Wind Target

Earlier this week, the State of California set ambitious new targets for offshore wind development, saying turbines along its storied coastline would power some 25 million homes by 2050. In a unanimous vote, the five-member California Energy Commission (CEC) adopted a goal of 3,000 to 5,000 megawatts (MW) of offshore wind by 2030 and 25,000 MW by 2045, the agency said in a statement.


California has among the most aggressive climate change goals in the country, but its foray into offshore wind has lagged that of East Coast states like New York, New Jersey and Massachusetts, where the industry is more mature. Projects off the California coast would require using floating turbines, an emerging technology, because of the depth of the outer continental shelf in the Pacific Ocean.




Gas Prices Fall Below $4 for First Time Since March

The national average price for a gallon of gas fell below $4 on Thursday for the first time since early March, according to AAA data. The milestone was reached after more than 55 consecutive days of declining prices at the pump. The national average price for a gallon of gas, which stands at $3.99, has fallen more than 20% since it reached a peak of $5.01 in mid-June, according to data from AAA.


In California, the state with the highest average price, a gallon of gas costs $5.38, though that price has fallen more than 11% over the past month. In Texas, the state with the lowest average gas price, a gallon costs $3.49, data showed. Despite the recent price dip, the cost of gas remains elevated, standing roughly 25% above a $3.18 national average one year ago.


White House Port Envoy Says Nation’s Entire Supply Chains Need 24/7 Operations, Not Just Ports

All parts of the US supply chain — not just its ports — need to move to round-the-clock operations to alleviate snarl-ups and reduce overall costs, President Joe Biden’s supply-chain czar said.


“If only you or only a terminal goes to 24/7, that’s interesting,” Stephen Lyons told Port of Long Beach Executive Mario Cordero in an interview Tuesday. “But if everybody — including the warehousing community, all the other modes of transport — moved to 24/7, or something more than today, that makes logical sense that you could move much more cargo in the same period of time.”


During the height of the supply-chain crisis last year, California’s twin ports of Los Angeles and Long Beach announced 24-hour longshore operations and extended gate hours for truckers. But even as backlogs have eased somewhat, round-the-clock operations at terminals remain scarce, making US maritime locations less efficient than many others worldwide.


Lyons said more fluidity is key to improving the movement of cargo. “It’s all about restoring consumer confidence and bringing costs down.”


Tankers See Strongest Market in 25 Years

Tankers hauling everything from diesel to gasoline are experiencing a period of strength not seen in at least 25 years, buoyed by robust demand for fuels and stretched sailing distances after Russia’s invasion of Ukraine. So-called product tankers have earned more than $40,000 a day for the past 14 weeks, according to figures from Clarkson Research Services Ltd., a unit of the world’s largest shipbroker.


Disruption to trading routes since Russian forces attacked Ukraine in late February caused oil prices to soar this year. While crude prices have begun to fall back amid growing fears of a recession, for now, fuel tankers have benefited from one of the tightest refined product markets on record. Analysts say a further warping of Russian flows could add to the surge later this year.




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