Like so many businesses around the globe, the U.S. shipbuilding industry has seen its fair share of lingering economic impacts from the COVID pandemic.
Despite workforce, supply chain issues, inflation, and intense competition, shipyards around the country are continuing to develop and apply the latest propulsion, and equipment technologies to innovate the next generation of vessels for their customers.
Pivoting to alternatives
After having to side-line its staple passenger vessel work since COVID struck, All American Marine (AMM) has been kept afloat by building for the offshore wind and research vessel market, but the shift back to its core market has slowly started to pick up speed.
“It used to be a 70/30 split,” according to Daniel Zech, AMM’s Business Development Manager. “We’re getting closer and closer back to 55 percent research vessel and 45 percent passenger vessel inquiries.”
Bellingham, Wa.-based AMM is continuing its long-term partnership with Teknicraft Design, which has developed a unique and proprietary foiling system, eco-bow, and hull shape that is giving the company an innovative leg-up in the hybrid, electric and hydrogen market when it comes to vessel performance and fuel economy.
for launch.
One distinctive new vessel is the first of its kind in the world – Sea Change, a 70-foot, 75-passenger, zero-emissions ferry recently delivered to operate on California’s San Francisco Bay. Profiled in last year’s American Ship Review, the vessel is U.S. Coast Guard-approved and features hydrogen fuel cell-powered, electric-drive technology developed by SWITCH Maritime, the ferry’s operator.
Despite the advances in zero-carbon propulsion technologies, there are currently no bunkering facilities for such passenger vessels in the U.S., though a small number are in the planning stage. “It’s like the hybrid electric market,” explained Zech. “We can build electric vessels, but it’s the shore side infrastructure that’s lacking. That really needs to catch up with the innovation that’s happening out on the water.”
Space and weight also have to be factored in when selecting the appropriate fuels, he said. Batteries pose a substantial increase in weight, and perhaps, are more ideal for harbor craft with maximum speeds under 15 knots. For passenger vessels, at present, hydrogen needs to be stored above deck.
All American Marine is seeing more inquiries into hybrid vessels, and, as Zech points out, solid state lithium batteries are on the cusp of becoming commercially viable and could potentially help to mitigate the weight issue.
Thriving during a crisis
An exception to the COVID slowdown, Manitowoc, Wi.-based Burger Boat Company has been thriving in its 160th year. The company builds a variety of craft from large commercial yachts to research vessels. “We never shut down during COVID because of our work supporting the transportation infrastructure,” according to Vice President of Sales and Marketing, Ron Cleveringa.
One of Burger’s newest deliveries is the Neebish Islander III, a 92-foot steel car/passenger ferry that operates year-round on the St. Mary’s River in Michigan’s Upper Peninsula between Barbeau, Michigan, and Neebish Island. (Profiled on Page 30)
Burger has also completed a trio of passenger vessels for use on the Chicago River – the Chicago’s Leading Lady, Chicago’s Classic Lady, and Chicago’s Emerald Lady. Designed by Sturgeon Bay, Wi.-based Seacraft Design, LLC, the craft are certified USCG Subchapter K compliant.
The company has also completed two fisheries research vessels for use on the Great Lakes. One, the R/V Arcticus was built for the U.S. Geodetic Survey’s Great Lakes Science Center to replace its 38-year-old vessel Grayling. Based at the USGS base in Cheboygan, Mich., Arcticus incorporates modern marine standards and state-of-the-art technology to safely and effectively conduct its primary mission.
In another notable first, Burger constructed the hulls and superstructures for the first all-electric passenger vessels to ply U.S. waters – James V. Glynn and Nicola Tesla. After fabrication, the modules were shipped to Buffalo, N.Y. where they were lowered into the Niagara River Gorge for final assembly. Both vessels were designed along the lines of the Maid of the Mist passenger vessels that went into service in 2020 as Niagara Falls sightseeing boats
When it comes to the workforce, recent hiring challenges have occurred, but things seem to be easing up. In efforts to promote the trades as a solid career choice, Burger collaborates with local high schools to provide internships for students and has built relationships with local technical colleges.
The company also offers an advancement program for general laborers who can be promoted from within, depending on their career goals. “We’re busy and constantly looking for new people to join our team,” said Cleveringa. “We’re actively hiring in all the trades.”
Challenges of another stripe
Workforce and supply chain issues plagued Theodore, Ala.-based shipbuilder Silver Ships, particularly during the pandemic. “I remember one month, we had over 50 percent of our direct labor employees out,” said CEO, Steven Clarke.
“It was challenging,” he said. “In addition, getting parts was even worse. I can’t even remember how many boats we had that were only 95 percent finished. From a business process perspective, that completely affects your overall project efficiency. But 90 percent of that is gone now, though there are still some issues getting small electrical components.
Like many medium-sized builders, “If you buy a boat from us now in any size range, the timeline is more than a year out,” said Clarke.
The solution? Like countless other companies impacted by last year’s massive logistics headache, Silver Ships plans for long lead times as the supply chain slowly works out the kinks and clanks back into life.
June saw the largest contract ever awarded to Silver Ships for the construction and delivery of up to 246 High-Speed Maneuvering Surface Target Vessels based on its 27-foot AM800 RHIB hull design. The $6.1 million dollar firm-fixed price General Services Administration contract for the construction and delivery of the craft includes options that, if exercised, would bring the cumulative value of the contract to more than $48 million. Delivery of the first target boats is scheduled for March 2024.
Over the last few months, the workboat builder delivered its first three Special Surface Craft – Law Enforcement (SPC-LE) vessels for the U.S. Coast Guard – its first Coast Guard contract in decades. The 33-foot armed vessels will be operated in varying conditions in the Caribbean and along the U.S. coastline.
Silver Ships also recently delivered its largest AM1100 11-meter Naval Special Warfare – Surface Support Craft (SSC) RHIB for the U.S. Navy. The company has been building AM1100s for the Navy for the past seven years. There are three variants of the vessel – the most recent delivery being the Open Center Console version. The vessels are used for training and support of swim and dive operations, among other missions.
Additionally, Silver Ships recently delivered Miss Agnes, a custom-built Explorer 26-series craft for the Mobile District, U.S. Army Corps of Engineers. The 26-foot marine surveying vessel will conduct hydrographic survey analyses along the Tennessee-Tombigbee Waterway. (Profiled on Page 36)
Moving forward in heavy weather
Peter Duclos, president of Somerset, Mass.-based Gladding-Hearn Shipbuilding, Duclos Corporation, says the company has survived the economic effects of the last few years and is busy building primarily for the domestic market.
“Right now, what we have under construction are a lot of pilot boats, which we’re extremely grateful for because that’s what really carried us,” he explained. “Those are the projects that carried us through COVID and continue to be the mainstay of our business right now.”
Earlier this year, Gladding-Hearn completed the refit of the pilot boat Tampa for The Tampa Bay Pilots Association. The boat, built by the company in 2002, was upgraded to the standards of its Chesapeake-class MKII pilot boat design and included new engines, steering system, and other upgrades. (Profiled on Page 38)
The company also has an offshore crew transfer vessel under construction, a first for the company in that market and, thankfully, in 2020, the shipbuilder was able to secure funds from the federal government’s paycheck protection program to help close the revenue gap while working on those projects.
Gladding-Hearn is not quite at 100 percent capacity with its workforce. Additionally, some supply chain issues continue to impact newbuilds. “We have one particular project right now that’s basically shut down because we couldn’t get some of the major machinery components, and we still don’t have everything,” Duclos said.
“We had no idea we were looking at 80 percent inflation on materials, so that’s what we’re facing,” he continued, referring to the fixed-pricing issue plaguing many yards across the country.
Not a day missed
During the COVID outbreak, “We made sure our folks felt comfortable coming to work, and I think that’s what made the difference and allowed us to work continuously and not miss a day all the way through COVID,” said Joey D’Isernia, CEO of Eastern Shipbuilding Group, Inc.
The shipbuilder, headquartered in Panama City, Fl., operates facilities in the Florida Panhandle in Panama City, Allanton, and Port St. Joe, and hasn’t missed a beat in attracting business.
ESG is currently building four offshore patrol cutters for the U.S. Coast Guard for its Heritage Class Offshore Patrol Cutter program. The 360-foot vessels will begin replacing the service’s aging fleet of 210-foot and 270-foot cutters. The new craft’s design was drawn in-house with input from an advisory board of experienced Coast Guard ‘cutter men’ assembled by the company.
The company recently signed a large conversion job to transform a high-spec offshore support vessel into a modern, efficient wind farm support vessel, the first occurring in the Jones Act Fleet to support the emerging wind farm market. Earlier this year, ESG announced the delivery of R.B. Weeks, an 8,550 cubic yard capacity trailing suction hopper dredge constructed for Weeks Marine, Inc. (Profiled on Page 26)
In July, the U.S. Army Corps of Engineers awarded Eastern Shipbuilding a contract worth $256.9 million for the design and construction of a Medium Class Hopper Dredge to replace the dredge McFarland, currently in service with the Corps’ Philadelphia District. The new dredge is scheduled for delivery in 2027.
ESG has also been contracted by Louisiana-based Hornbeck Offshore Services, Inc. to convert a 280-foot offshore supply vessel into a service operation vessel with delivery expected in the spring of 2025, while it is building a new 302-foot auto and passenger ferry for Connecticut’s Bridgeport & Port Jefferson Steamboat Company, a long-time customer. Delivery is scheduled for March 2024.
“Another example of repeat customers,” said ESG’s D’Isernia. “You don’t get them without making promises, keeping them and giving them consistent quality.” •