Canadian Shipbuilding Association Calls for Tax on Chinese-Built Ships
September 3, 2024
The Canadian Marine Industries and Shipbuilding Association (CMISA) is urging the Canadian government to extend its recent 100% tariff on Chinese-made electric vehicles to Chinese-built ships.
The association argues that Chinese-built ships pose a significant strategic and ethical threat to Canadian industries and national security.
CMISA highlights concerns about China’s shipbuilding industry, citing its “Civil-Military Fusion” doctrine, which allegedly subsidizes commercial ship exports to bolster military capabilities. The association claims that Chinese shipyards producing commercial vessels also construct warships for the Chinese Navy, contributing to its expansion and potential challenges to Canadian interests, including in Arctic waters.
The association has expressed disappointment over a recent decision by Marine Atlantic, a Canadian Crown corporation, to lease a ferry built in China for service on Canada’s Atlantic coast. CMISA describes the deal as a “complex lease structure” that “appears designed to evade public scrutiny and ethical concerns.”
“Few Western governments would support the construction of a taxpayer-owned ship in China, yet a Canadian Crown corporation has done so indirectly through this lease. On the positive side, Marine Atlantic now has five years to work with the Canadian shipbuilding sector to ensure that we have a made-in-Canada solution ready to sail when the lease is up,” CMISA said.
CMISA is now calling for “immediate and decisive action from the government, including a 100% tax on Chinese-built ships in Canada.
“We recommend the imposition of a 100% surtax on all Chinese-built ships imported into Canada and demand a clear prohibition on any government entity or Crown corporation from acquiring or leasing Chinese-built vessels,” the association’s spokesperson stated.
CMISA argues that these measures are necessary to protect Canadian industries, uphold national security, and ensure consistency with Canada’s commitment to human rights and ethical business practices.
The call comes as lawmakers and industry stakeholders in the U.S. have raised serious concerns regarding alleged unfair trade practices by China in the shipbuilding, maritime, and logistics sectors. The United States Trade Representative (USTR) has even initiated an investigation into the the PRC’s use of unfair, non-market policies and practices in the sectors in response to a petition submitted by U.S. labor unions, including the United Steelworkers (USW). The petition proposes remedies including a fee on vessels constructed in China that dock at U.S. ports.
Lakes Limestone Trade Down in August
CLEVELAND — Shipments of limestone on the Great Lakes totaled 3.7 million tons in August, a decrease of 7.7 percent from a year ago. Limestone cargos were also below the month’s 5-year average by 4.4 percent.
Loadings from U.S. quarries totaled 2.9 million tons, a decrease of 11.1 percent compared to 2023. Shipments from Canadian quarries totaled 809,032 tons, an increase of 7.3 percent.
Year-to-date the Lakes limestone trade stands at 17.1 million tons, with loadings from Michigan and Ohio quarries totaling 13.6 million tons and shipments from Ontario quarries totaling 3.4 million tons, all increases of less than one percent compared to a year ago.
[See Chart in Gallery Below]
About Lake Carriers’ Association
Since 1880, Lake Carriers’ has represented the U.S.-flag Great Lakes fleet, which today can move more than 90 million tons of cargos annually that are the foundation of American industry, infrastructure, and power: iron ore, stone, coal, cement, and other dry bulk materials such as grain, salt, and sand. More information is available at www.lcaships.com.
Information based on data from knowledgeable sources. However, accuracy cannot be guaranteed. LCA assumes no legal responsibility for the outcome of decisions or commitments made on the basis of this information. This report represents the views of LCA and may not necessarily represent the views of its individual members.
Eric Peace
Vice President
Lake Carriers’ Association
25651 Detroit Road, Suite 102
Westlake, Ohio 44145
(440) 333-9996 (office) | (410) 703-8792 (mobile)
www.lcaships.com
SS United States Faces Uncertain Future as Court-Imposed Deadline Approaches
Mike Schuler
September 3, 2024
The historic ocean liner SS United States is facing a critical juncture as a September 12 deadline looms for its removal from its current berth in Philadelphia.
The U.S. District Court has denied the SS United States Conservancy’s request for a three-month extension, mandating that the organization present a formal agreement to remove the ship from Pier 82 by the specified date.
The ruling comes as the SS United States Conservancy, the nonprofit organization that owns the ship, faces eviction due to a legal dispute with Penn Warehousing, the pier operator, over increased rent.
However, Senior Judge Anita Brody has left room for potential flexibility. If the Conservancy secures a contract for the ship’s removal by September 12, the judge expects good faith negotiations to allow for a safe and proper removal at a later date.
As the deadline approaches, the fate of “America’s Flagship” hangs in the balance.
The Conservancy is exploring various options for the ship’s future, including a controversial proposal to convert the vessel into an artificial reef off the coast of Florida. A contingent contract has been entered with Okaloosa County, Florida, to advance this effort.
“Reefing is not the Conservancy’s preferred scenario for the SS United States,” the organization stated. “With our hand being forced by Penn Warehousing, and scrapping being the only other viable option, we believe reefing is the more dignified outcome.”
The Conservancy emphasizes that multiple discussions are ongoing, and the outcome remains uncertain. The Conservancy had previously collaborated with RXR Realty and MCR Hotels on a redevelopment plan for the SS United States in 2023, which envisioned transforming the ship into a privately funded, mixed-use destination and museum. However, these plans never materialized.
“We are now working diligently to salvage that dream as best we can, albeit not in the way we had originally envisioned, but in a way that allows the story of our nation’s ship to inspire generations to come,” the Conservancy said.
The SS United States Conservancy acknowledges the difficulty of potentially reefing the historic ship, a prospect that many board members have worked to avoid for over a decade.
“We vow to continue to do everything we can to best preserve her legacy each day leading up to the Court-imposed September 12 deadline, and we remain eternally grateful for your support and partnership in our shared mission,” it said.
National Museum of the Great Lakes Second
Wave Capital Campaign Nears Completion
Toledo, OH – The National Museum of the Great Lakes is entering a new chapter as its Second Wave expansion project progresses. With the foundation set and structural build underway, the museum is reaching out to the community for a final push of support. Now is your chance to contribute to the future legacy of this historic institution.
The Second Wave expansion will add 5,000 square feet of new space, allowing the museum to showcase traveling Smithsonian exhibits, introduce new permanent exhibits, and create dedicated spaces for community education.
“By supporting this campaign, donors are actively preserving Great Lakes history, fueling ongoing education, revitalizing our neighborhood, and boosting the economic vitality of our region,” said Kate Fineske, Executive Director of the National Museum of the Great Lakes.
Donations can be made online at nmgl.org/thesecondwave or by calling the museum at 419-214-5000. Contributions of all sizes are welcome, and donors will receive exclusive Second Wave thank you gifts as a token of appreciation. Donors contributing more than $500 will also be recognized on our donor wall.
“This is the moment to make a lasting impact on our museum and the communities we serve,” said Sara Smith, the Museum’s Director of Institutional Advancement. As we conclude our public campaign, join in this effort and ensure the National Museum of the Great Lakes remains a beacon of pride and inspiration for generations to come. For more information or to make a donation,
The National Museum of the Great Lakes
Detroit’s Detroit River Cruise tickets now on sale to public
Ticket sales for the annual Marine Historical Society of Detroit’s Detroit River Cruise, scheduled for Saturday, September 7, from 1-4 p.m. aboard the the Diamond Jack River Tours boat DIAMOND QUEEN, are now open to the public.
Passengers will have the opportunity to photograph vessels and historic sites along the Detroit River and enjoy a narration by local history expert Ken Borg. The number of passengers will be limited to 100 so there will be lots of room to move about the boat. Tickets are now on sale at MHSD.org. Or pay by check to the Marine Historical Society of Detroit for $28.50 and mailed to MHSD Cruise,1020 Iroquois, Detroit, MI, 48214. If there are any tickets left the day of sailing, they will be sold at the dock for $30.
Marine Historical Society of Detroit
