1. Clif Hasegawa <clifhasegawa@gmail.com>
US Shipbuilding - Changing landscape of the Maritime Industry
Dan Duncan <Dduncan@maritimetrades.org>
Fri, Mar 11, 2016 at 10:37
AM
To: "clifhasegawa@gmail.com" <clifhasegawa@gmail.com>
Aloha Mr. Hasegawa,
Thank you for taking the time to call and forward the articles on mega-ships and downsizing
at Daewoo. We had heard about the problems with Korean shipyard books being reduced
because of a slowdown in global trade as well as competition from China.
The Maritime Trades Department just had its annual executive board meeting last month.
Of course, domestic shipbuilding was a topic for discussion. I have attached our statement
on shipyards that was approved by the board.
Another topic was the strong support from elected officials and military officers who spoke
for the Jones Act. (Please review our website www.maritimetrades.org for stories on the
meeting.) We all know how vital the Jones Act is to America’s economy and national
security.
With your permission, I will forward your email to the AFL-CIO Metal Trades Department,
which oversees worker contracts at a variety of shipyards (both new build and repair)
around the country.
I hope this finds you well. Please take care, and thank you again.
Dan
Daniel W. Duncan
Executive Secretary-Treasurer
Maritime Trades Department, AFL-CIO

2. From: Clif Hasegawa <clifhasegawa@gmail.com>
Date: Thu, Mar 10, 2016 at 12:59 PM
Subject: US Shipbuilding - Changing landscape of the Maritime Industry
To: “Daniel Duncan AFL-CIO MTD” <dduncan@maritimestrades.org>
Cc: “Karen Duncan AFL-CIO” <kduncan@maritimetrades.com>, Representative Joe Souki
<repsouki@capitol.hawaii.gov>, Chris Dupin <cdupin@shippers.com>
DANIEL DUNCAN
EXECUTIVE SECRETARY-TREASURER
THE MARITIME TRADES DEPARTMENT, AFL-CIO
Dear Mr. Duncan,
As the countries of the world seek to form partnerships to better the world economy, trade
barriers are being examined, outdated ones updated, minimized and/or eliminated.
Ratification of the Trans Pacific Partnership (TPP) is now before Congress. As I shared with
Ms. Karen Duncan, the Jones Act does not preclude all US shipyards from being
competitive. I am hopeful that the AFL-CIO and other trade unions collaborate to spread the
word and lead the movement to empower the US ship building industry, particularly smaller
shipyards, towards a better, brighter future.
The migration to foreign shipyards for large LNG vessels was driven by the exponential
growth in the market place.[1]
The economies of scale achieved by operating larger containerships may be running out.
Please refer to attachment Drewry, article by Chris Dupin, American Shipper.
http://www.americanshipper.com/Main/ASD/Drewry_Diminishing_economies_of_scale_for_vessels_63282.aspx
The latest decision by Daewoo Industries, patent owner of the widely utilized LNG engine,
signals further changes in the maritime industry. Please refer to the article, Daewoo
(DSME), article by Chris Dupin, American Shipper, received today, March 10, 2016.
http://www.americanshipper.com/Main/ASD/DSME_to_layoff_another_12000_workers_63293.aspx
The mega and large US Shipyards are positioned at the forefront of change. Smaller
shipyards need to be proactive and be prepared for these changes in the maritime industry.
The MARAD Study reveals the importance and significance of the entire US Shipbuilding
industry.[2]

3. A copy of this correspondence is provided to House Speaker Joseph Souki of the Hawaii
Legislature, a staunch supporter of the Jones Act and always vigilant on these matters.
Thank you for the opportunity to share my thoughts with you.
Respectfully,
Electronically Signed
Clifton M. Hasegawa
[1] The Global Shipping Industry's Most Profitable Sector: LNG Shipping. Keith Schaefer,
Oil Price.com. 03 March 2012. http://oilprice.com/Energy/Natural-Gas/The-Global-Shipping-
Industrys-Most-Profitable-Sector-LNG-Shipping.html
[2] The Economic Importance of the U.S. Shipbuilding and Repairing Industry – MARAD -
http://www.marad.dot.gov/wp-content/uploads/pdf/MARAD_Econ_Study_Final_Report_2013.pdf
AMERICA’S SHIPYARDS
We’ve experienced a historical year for America’s shipbuilding industry, with a multitude of
innovations and technological firsts taking place at the nation’s Jones Act shipyards. From eco-
friendly ships that cut down on emissions to alternate-fuel vessels, U.S. shipyards spent 2015
making their mark in the history of commercial shipping.
The world’s first liquefied natural gas (LNG)-powered containerships were built at union-
contracted General Dynamics NASSCO for TOTE Services: the Isla Bella and the Perla del Caribe.
These vessels are not only among the most fuel efficient in the world, but also reduce nitrous
oxide (NOx) emissions by 98 percent, sulfur oxide (SOx) by 97 percent, carbon dioxide by 72
percent and particulate matter by 60 percent.
Aker Philadelphia Shipyard, which is now called Philly Shipyards, Inc., and its union workforce
delivered the Crowley Tanker Ohio. The delivery is momentous not only for Crowley, but also
for the industry because it signifies the first time a product tanker has been constructed with
consideration for the future use of LNG for propulsion.
Philly Shipyards has accepted contracts for six more Jones Act tankers, ensuring a steady supply
of jobs for Metal Trades workers. The LNG-powered combination container/roll-on-roll-off
(ConRo) El Coqui was delivered for Crowley, and construction began on its sister ship, the Taino.
New York Waterway added a new vessel and announced plans for another one in the near
future, while American Petroleum Tankers took delivery of the Lone Star State.

4. The tanker is the first in a contract between NASSCO and APT, which calls for the design and
construction of five 50,000 deadweight-ton, LNG-conversion-ready product tankers with a
330,000 barrel cargo capacity.
“The delivery of this new vessel symbolizes the future of American shipping: innovative, cost-
effective, and green. The Lone Star State, along with the four others we are currently building
for APT, will be among the most fuel-efficient and environmentally-friendly tankers – anywhere
in the world,” said Fred Harris, president of General Dynamics NASSCO. “These tankers are 33
percent more fuel efficient than the previous five tankers built by NASSCO for APT. We are
proud to be leading the charge in building these next generation of tankers.”
Maersk Line, Limited also accepted the oceanographic survey ship USNS Maury, the last of its
class. Designed to perform acoustic, biological, physical, and geophysical surveys, the Maury
will provide the U.S. military with essential information on the ocean environment.
While we in the maritime industry truly understand the value of shipyards, it’s also important to
remember the wide effects of shipbuilding across the country. According to a recent study
prepared by the Maritime Administration (MARAD), the U.S. shipbuilding and repair industry
supports jobs in all 50 states with a total of more than 110,000 jobs nationwide and contributes
$37.3 billion dollars to the national GDP.
"The MARAD study showcases the important role the U.S. shipbuilding and repair industry plays
in both commercial and military sectors, while also highlighting the critical support the shipyard
industrial base provides to the nation's economic and national security. As an industry, we are
extremely proud to support these good paying American jobs that are filled by some of the
most highly skilled, world-class craftsmen from coast to coast. It is these craftsman who have
served as a hallmark of our innovative industry since its inception and will continue to be as our
industry grows and flourishes in the future," said Tom Godfrey, Chairman of the Shipbuilders
Council of America.
These newly built vessels, constructed in union shipyards by hardworking Americans, as well as
Congress’ continued commitment to support and defend the Jones Act, serve as a powerful
statement to those who seek to undermine America’s cabotage laws. Every new U.S.-flag ship
means additional good-paying jobs for American. The Maritime Trades Department, AFL-CIO, its
affiliates and its Port Maritime Councils will never stop fighting to ensure that trend continues
into the future .