TYPES OF VESSELS IN OUR FOREIGN-TRADE FLEET A classification of vessels according to types that are engaged only in foreign trade is shown on table X. TABLE X.-United States foreign-trade fleet classified according to types of vessels, showing tonnage of steam and motor vessels each of 1,000 gross tons or over and excludes Great Lakes and river tonnage Source: United States Shipping Board Bureau, Department of Commerce. As shown by table X, over 50 percent of our foreign-trade tonnage consists of freighters. RATE OF OBSOLESCENCE OF OUR FOREIGN-TRADE FLEET It is well known that most of the vessels in our foreign-trade fleet were built during the World War period, and are rapidly nearing obsolescence. Chart 8 shows the cumulative percentage of American sea-going merchant tonnage in existence on December 31, 1933, which will become over 20 years old by the end of each year up to 1952. Separate diagrams have been prepared for passenger and combination vessels, freighters, tankers, and all types combined." In each diagram the heavy line represents the percentage of our tonnage on December 31, 1933, which will become obsolete by the end of each year shown on the base line. In the case of passenger and combination vessels the chart shows that over 25 percent of the tonnage is already over 20 years old. By the end of 1941, 61 percent of our passenger and combination tonnage will be out of date. By the end of 1941, 97 percent of our freighter tonnage will be obsolete. The facts shown as to the age of American tonnage in foreign trade emphasize the necessity for beginning at once a continuous annual building program to replace obsolete vessels if this country is to maintain its position on the seas in competition with the more modern vessels of its foreign rivals. Gross tonnage of various types of vessels which become obsolete (over 20 years old) at the end of each year up to 1953 Figures are for vessels each of 2,000 gross tons or over under American registry on Dec. 31, 1933. They exclude the Great Lakes fleet and the Shipping Boards' idle fleet] Source: United States Shipping Board Bureau, Department of Commerce. VESSELS CERTIFIED FOR OPERATION ON OCEAN-MAIL ROUTES Recently the United States Shipping Board Bureau of Research made an analysis of ocean-going passenger and combination vessels and freighters which were certified for operation on ocean-mail routes as of June 30, 1933. This analysis showed that at that time there were 302 vessles aggregating 2,071,836 gross tons certified for operation on ocean-mail routes, and 184 foreigntrade vessels aggregating 940,776 gross tons which were not certified to operate on ocean-mail routes. These figures show a total of 486 vessels of 3,012,612 gross tons registered for foreign trade at that time. They exclude tankers but include vessels that are temporarily laid up. While these foreign vessels may engage in foreign trade, many of them are at present in coastwise trade or are laid up because of the reduced volume of foreign trade resulting from the world business depression. Table XI shows an analysis of these vessels according to type and year built. TABLE XI.-Number of American vessels in foreign trade of the United States, excluding tankers, as of June 30, 1933 Source: United States Shipping Board Bureau, Department of Commerce. In the above figures regarding the age of our vessels it should also be noted that the war-time vessels were largely of pre-war design. This table is informative as it shows that only 57 of these vessels or about 12 percent of them have been built since 1922, whereas 365 or 75 percent of the total are war-time built vessels and average about 15 years of age. In the absence of further new construction nearly 90 percent of our tonnage will be obsolete by the end of 1941. EFFECT OF TECHNICAL PROGRESS ON OBSOLESCENCE While the average life of a vessel is generally accepted, the world over, to be 20 years, it cannot be denied that the rate of obsolescence has increased in recent years due to the very rapid progress which has been made in technical developments in shipbuilding. Present-day fuel consumption in modern vessels is from 30 percent to 40 percent less than it was in vessels built 12 years ago with a resultant increase in the economy of the operation of these vessels. Requirements of the International Convention of Safety of Life at Sea have outmoded vessels in existence as late as 1927. Recent requirements of the Bureau of Public Health have resulted in very appreciable alterations in the modernization of vessels. The introduction of fireproof materials and the use of high-tensile steel have made marked advances during the past few years. The rapidly expanding use of welding in ship construction has been a source of considerable improvement in fabrication. REPLACEMENT PROGRAM, A NECESSITY If the United States is to maintain its present position in the carriage of world trade, it is necessary to replace at least 3,000,000 gross tons of our vessels for foreign-trade services over a 20-year period. Nevertheless, it would be neither practicable nor desirable to modernize our entire fleet by the time it is obsolete in 1941. It is imperative, however, that a replacement program should be undertaken without delay. The replacement of 3,000,000 gross tons over a 20-year period would require the average construction of 150,000 gross tons of ships a year, as stated elsewhere. At the above rate it would be 1955 before our present foreign-trade fleet is entirely replaced, and many of our ships would be at that time 35 years old. It is inconceivable that the United States would attempt to operate ships of that age in competition with the much more modern ships of other nations. Whatever program of construction is adopted should begin with not less than 150,000 gross tons of ships a year and be gradually increased to provide for the replacement of our present fleet of war-time built vessels certainly not later than 1945. On the basis of replacing 150,000 gross tons a year, the average annual expenditure is estimated to be about $25,000,000 a year. If our merchant fleet is replaced over a shorter period than 20 years the annual cost would, of course, be correspondingly greater, but the total cost no more. The construction of 15,000 gross tons of ships a year would be the equivalent of 20 ships of 7,500 gross tons each, or 15 ships of 10,000 gross tons each. SHIPPING SERVES EVERY STATE IN THE NATION Charts 9 and 10 are introduced at this point to show that shipping is a matter of national interest and that it serves all sections of the country and probably directly or indirectly every industry. Chart 9 was prepared by the American Manufacturers' Export Association of New York City and shows the value and principal types of articles exported abroad which were produced by each and every State in the Union during 1929 and 1932. Records show that 80 percent of our export trade is carried to market by means of ships. The value of the chart lies partly in the fact that two sets of figures are given, one for a peak year and the other for a depression year. Even in a year of depression the extent of our export trade which originates in each of our States and which is carried abroad by means of ships is very considerable. Chart 10 has been prepared to give some idea of the very great variety of articles produced by each and every State in the Union which are exported largely by means of ships. Part IV, which follows, deals with shipbuilding and ship repairing in the United States. PART IV. AMERICAN SHIPBUILDING AND SHIPREPAIRING CHARACTERISTICS OF SHIPBUILDING INDUSTRY Shipbuilding is a highly specialized industry. A ship is built to order and must meet the requirements of the buyer. While the preliminary plans for a new vessel are generally supplied to the shipbuilder for estimate purposes the detailed working plans must be prepared by the shipbuilder. The industry requires, therefore, a large staff of technical employees skilled in the art and science of shipbuilding and with a knowledge of ship design in the United States and abroad. The technical staffs require years of training and experience in order to qualify them to perform their work competently. While the technical staff performs the design work, the mechanical staff fabricates the parts and assembles them together with the machinery and equipment, into a finished ship. Fully one-half of all shipyard employees belong to the skilled trades; 25 percent are semiskilled; and not over 25 percent of the total are unskilled. As previously stated the cost of a ship is about equally divided into two partsone-half being the cost of construction and assembly within the shipyard, and the other half representing the cost of materials and equipment purchased from allied industries. MATERIALS USED IN SHIPBUILDING The shipbuilding industry is a great consumer of raw materials. It buys from other industries not only the materials and equipment that are incorporated within the ship itself, but also the products that are consumed within the shipyard during the process of construction. The materials and equipment used in shipbuilding involve directly or indirectly practically every known industry and are supplied in varying quantities from all parts of the country. A circular was sent out a short while ago by one of our largest shipyards and addressed to the companies from which it has recently bought raw or manufactured materials. Seven hundred and nineteen companies were on this list. Table XII shows the principal materials used in shipbuilding which are produced by every State in the Union. In addition to the principal materials listed on the table, there are many others of minor importance, but the list is sufficiently complete to show the widespread distribution of shipbuilding materials to all parts of the United States. The materials must be received by the shipyard before the actual construction of the vessel itself can proceed. Consequently, in the early stages of a new contract, more employment is required in allied industries than within the shipyard itself. TABLE XII.—Materials or equipment furnished for shipbuilding by the various States |