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7 - Economic Considerations

Published online by Cambridge University Press:  05 October 2015

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Summary

“What Price Speed?”

Giuseppe Gabrielli and Theodore von Kármán, 1950

Declining American Marine Industry

In the late 1950s and early 1960s, the American marine industry was in trouble. Nicolas Johnson1, US Maritime Administrator (1964–1965) discussed the problems of the high cost of shipping exports overseas which also meant an increase in the cost of American goods to the foreign consumer. In 1960, the US Share of world shipping was less than 10% despite a major shipbuilding program that had been underway in the US during World War II. Unfortunately, most of the shipbuilding in the US during WW II was embodied in the American Liberty Ship, a standard dry cargo vessel (approx 10,902 dwt) and the T2 tanker (16,543 dwt). The Liberty ship was a wide bodied, bulbous ship with a disappointing top speed of 11 knots. Most of the foreign ships at that time were designed for higher speeds (14 knots and more). This placed the US at a disadvantage in capturing any significant share of the world shipping trade.

This decline in the US share of world shipping, that continues to this day, is shown in Figure 7.1. In addition, there was the problem of high labor and high capital costs, which caused the US government to subsidize the shipbuilding industry at rates at different times through this period of 30% and 50%. The US Maritime Administration needed to find another solution. At that time, the only alternatives available to the shipper was “By Sea” or “By Air” with vastly different costs. The two choices available to the shipper, whether it be a manufacturer of say automobile parts in Detroit or a grain supplier in the mid-West; were to ship by air at 20 cents per ton mile and have his goods arrive within 24 hours, or ship by sea at 5 cents per ton mile and have his goods arrive say, 5 days later. Issues of weight and bulk (space) and needs of roll-on, roll-off capability also entered into the decision of which shipping method to use, but the cost was a significant driver.

As a further indication of the US Maritime Administration concern was the significant drop in the US shipbuilding construction.

Type
Chapter
Information
High-Speed Marine Craft
One Hundred Knots at Sea
, pp. 228 - 276
Publisher: Cambridge University Press
Print publication year: 2015

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References

1. Johnson, Nicolas, “The American Partnership: The US Merchant Marine”, speech given at the Mid-Gulf Conference on Transportation & Industrial Modernization for Profit and Growth, New Orleans, La., 9 February 1965
2. “Standard Method of Estimating Comparative Direct Operating Costs of Turbine Powered Transport Airplanes”, Revised version dated October 1967, Air Transportation Association, Washington, DC.
3. Mantle, Peter J. and Lavis, David R., “Domain of the Air Cushion Craft”, paper given at the Society of Automotive Engineers (SAE), New York, New York, 29 April 1968CrossRefGoogle Scholar
4. Mantle, Peter J.“Interface Craft for Future Transportation”, ASME, 1966 National Transportation Symposium, San Francisco, California, 1–6 May 1966
5. Mantle, Peter J., “Air Cushion Craft Development”, published by US Navy in 1980 (ISBN 008-047-00291-2)Google Scholar
6. Gabrielli, Giuseppe and von Karman, Theodore, “What price Speed?”, Mechanical Engineering, October 1950 Issue.Google Scholar
7. Mantle, Peter J.“Interface Craft for Future Transportation”, ASME, 1966 National Transportation Symposium, San Francisco, California, 1–6 May 1966
8. Mantle, Peter J.“Some Design Aspects of Air Cushion Craft”, International Congress of Subsonic Aeronautics, The New York Academy of Sciences, New York, N.Y., 3–6 April 1967Google Scholar
9. Mantle, Peter J.“Interface Craft for Future Transportation”, ASME, 1966 National Transportation Symposium, San Francisco, California, 1–6 May 1966
10. Mantle, Peter J.“Some Design Aspects of Air Cushion Craft”, International Congress of Subsonic Aeronautics, The New York Academy of Sciences, New York, N.Y., 3–6 April 1967Google Scholar
11. ibid
12. Meeks, Capt Tom and Mantle, Peter J., “The Advanced Naval Vehicle Concepts Evaluation”, AIAA/SNAME Advanced Marine Vehicles Conference, Arlington, Virginia, Paper No. 76–846, 20–22 September 1976
13. Mantle, Peter J., “Advanced Concepts for Sea Control”, Society of Automotive Engineers Aerospace Meeting, Paper No. 770966, Los Angeles, CA, 14–17 November 1977CrossRefGoogle Scholar
14. Dix, D.M. and Riddell, F.R., “Projecting Cost-Performance Trade-Offs for Military Vehicles”, Astronautics and Aeronautics magazine, September 1976Google Scholar
15. Mantle, Peter J., “Air Cushion Craft Development”, published by US Navy in 1980 (ISBN 008-047-00291-2)Google Scholar
16. US Bureau of Labor Statistics, http://www.bls.gov/data
17. “Ship Work Breakdown Structure”, Naval Ship Systems Command, NAVSHIPS 0900–039-9010, March 1973
18. Mantle, Peter J., “Air Cushion Craft Development”, published by US Navy in 1980 (ISBN 008-047-00291-2)Google Scholar
19. ibid
20. “PRICE”, Manual issued by RCA PRICE Systems, Edition, 1984
21. Salmon, C.L. and Locke, A.J., “The Application of PRICE to Ships and Other Large Structures”, paper presented at the PRICE Users Symposium, Munich, GE, 14–16 September 1982
22. Jones, R., Mayo, D.L. and Clark, D.J., “The Application of the RCA PRICE Parametric Cost Model to Air Cushion Vehicles”, paper presented to International Society of Parametric Analysts, Sixth Annual Conference, San Francisco, CA, 16 May 1984
23. Moy, James, “Ship Construction Cost Estimating Relationships for Advanced Naval Vehicle Concept Evaluation (ANVCE) Study”, Naval Ship Engineering Center, Report 6112DE-045–77, August 1977.
24. ibid
25. Wright, T.F., “Factors Affecting the Cost of Airplanes”, Journal of the Aeronautical Sciences, Vol 3, February 1936, pp122–128CrossRefGoogle Scholar
26. Moy, James, “Ship Construction Cost Estimating Relationships for Advanced Naval Vehicle Concept Evaluation (ANVCE) Study”, Naval Ship Engineering Center, Report 6112DE-045–77, August 1977.
27. ibid

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