The U.S. maritime industry has experienced many challenges and disappointments over the past few years. Although economic reports might leave little room for optimism, I believe there have been positive developments in the industry and the future is brighter than one might think.
Let's start with the American domestic tanker fleet. We recently took delivery of the first of three 750 series articulated tug barges, which will soon bring our ATB fleet to 17 units. These remarkable vessels combine the shallow draft and operating flexibility of an ATB with the size and speed of a 330,000-barrel traditional tanker. We’re also operating five new NASSCO-built tankers for American Petroleum Tankers. These new vessels join dozens of others built in the past few years, placing America’s domestic tanker fleet among the newest, most innovative and environmentally friendly in the world.
Evolving growth in offshore energy development demands new, highly sophisticated vessels to handle petroleum exploration and production, as well as renewable sources of energy. The resulting new vessel construction at U.S. shipyards has been great for the industry, and for the thousands of Americans working in the shipyards and aboard the vessels.
Another positive development is the success of the American Maritime Partnership in bringing together labor, management, shipyards and other segments of the industry. Maintaining a unified front and singular industry voice is critical as we confront the challenges still ahead of us.
Among the most urgent challenges is the need to replace the domestic liner fleet. OPA 90 mandated renewal of the domestic tanker fleet on a predictable schedule, just as the Maritime Security Program limits the age of vessels in the program. No similar rule applies to the liner fleet. I believe we must take charge of this situation through legislation that will phase out obsolete vessels, and enable operators to earn the cost of the capital needed to replace them.