Page 29: of Maritime Reporter Magazine (April 1973)

E.M. Hood Reports

Record Backlog

For U.S. Shipyards

The backlog of work in American shipyards is today at a record peace- time level.

Included in a report at the 52nd

Annual Meeting of the Shipbuilders

Council of America, in Washington,

D.C., on March 7, Council president

Edwin M. Hood summarized the pattern of activity in 1972 as follows : "More than $3 billion in new con- tracts for the construction of mer- chant and naval vessels were placed with American shipyards in 1972, and at year end, the combined in- dustry backlog was estimated at $5.7 billion—a record peacetime high. The aggregate value of shipbuilding and ship repairing performed by private- ly owned and commercially operated shipyards during 1972 approximated $3 billion. Another $1.1 billion in

U.S. Navy shipwork was done in

Government-owned and operated na- val shipyards."

However, he cautioned, "these sat- isfying developments do not neces- sarily suggest an enduring boom.

Requirements for new ships, and thus prospects for shipbuilding in the im- mediate years ahead, are increasingly difficult to forecast, and will be large- ly determined by capital costs, cargo movements, national policies, budg- etary considerations, labor-manage- ment stability, shipper confidence in

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U.S.-flag shipping, and investor in- terest."

With regard to prospects for the construction of tankers for the im- portation of oil and liquefied natural gas to supplement domestic resources,

Mr. Hood spoke of "related prob- lems" : "The scope of national policy; the adequacy of existing port facili- ties; the feasibility of offshore deep- water terminals; the effects of pollu- tion control, and the share to be transported in U.S.-flag U.S.-built vessels. Answers may not be easy, nor prompt, just as a final decision pertaining to the Trans-Alaskan Pipe- line System (TAPS) has been vir- tually in a comatose state for more than two years."

Meanwhile, he said: "The econom- ics of shipbuilding and ship repairing in the United States are undergoing change. The impact of inflation is universal—costs for wages, materials and services continue upward. Profits continue to leave much to be desired.

Controversy continues to surround the final pricing of many contracts.

In addition, the continual impact of new occupational health and safety requirements, shipyard workmen's compensation rates and environmental standards is expected to further dis- tort the differential between U.S. and foreign costs. "Despite ponderables and impon- derables in the present situation," Mr.

Hood added, "U.S. shipbuilders none- theless remain optimistic about the future. Investments in capital im- provements have continued, and more are planned. Improvements in man- agement, marketing, personnel and production techniques have been dili- gently pursued, and gains in produc- tivity have been accomplished."

Commercial Transport

Affiliate Of ACBL

Elects Carl Olson VP

The election of Carl Olson as vice president of 'Commercial

Transport Corporation, an affiliate of American 'Commercial Barge

Line Company, has been an- nounced at the companies' general offices in Jeffersonville, Ind.

The announcement was made by

Floyd H. Blaske, chief executive officer of the Inland Waterways

Services Division of Texas Gas

Transmission Corporation, of which

American Commercial Barge Line

Company (ACBL) and Commerci- al Transport Corporation (CT'C) are parts.

As vice president, Mr. Olson has executive responsibility for CTC's dry bulk sales. He formerly was director of dry bulk sales. The dry bulk sales operation has to do with producing for his company af- freightment of dry bulk commodi- ties other than coal and grain. In- cluded are ores, minerals, fertilizers and other commodities

A native of Marion, 111., Mr. Ol- son has been with ACBL and CTC the last two years. He has been engaged in barging operations since 1956, first with A.L. Mechling

Barge Line, and from 1967 until 1971 with Mid Valley Towing

Company.

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April 1, 1973 31