Future Retirement Success
  • Politics
  • Business
  • Investing
  • Stocks
  • Politics
  • Business
  • Investing
  • Stocks

Future Retirement Success

Investing

Protectionist Sightseeing in New York Harbor

by December 13, 2024
December 13, 2024
Protectionist Sightseeing in New York Harbor

Colin Grabow

My family spent Thanksgiving in New York City, where we did many of the usual tourist things such as a picture with Wall Street’s Charging Bull sculpture, ice skating in Central Park, and a (mercifully short) visit to Times Square. The first item on our sightseeing agenda, however, was the Statue of Liberty. Looking at the ferry that would transport us, I was struck by an underappreciated paradox. Visitors to the world’s most famous monument to liberty are transported by vessels rooted in coercion.

Despite the US’s free market reputation, the country is home to some of the world’s most restrictive maritime cabotage laws, including the Jones Act and (most relevant for ferries) the Passenger Vessel Services Act. Among their requirements is that vessels transporting goods or people within the United States — including the transfer of visitors to Liberty Island — be constructed in US shipyards. 

In the land of the free, foreign-built ferries (and other vessels) are strictly off-limits.

After boarding our ferry, I quickly located its certificate of inspection. It showed that the vessel, the Statue of Liberty V, was quickly approaching its 48th birthday having been delivered on January 1, 1977.

The ferry’s advanced age wasn’t much of a surprise. Thanks to the high cost of new construction in US shipyards — which almost entirely subsist on sales to the protected domestic market — vessels ranging from tugboats to containerships to fishing vessels tend to be significantly older than those used in other countries.

Indeed, only minutes after our departure I spotted another aging vessel, the tugboat Lucy Reinauer. Built in 1973 (compared to an average build year of 2001 for foreign seagoing tugs), the tugboat was paired with the barge RTC 60 to form an articulated tug barge (ATB). Developed as a response to the high cost of building and crewing vessels within the protected US market, ATBs are relatively little used outside the United States. That countries without restrictions on where vessels can be purchased — i.e. the rest of the world — largely avoid ATBs suggests their employment is less than optimal.

Theoretically, prohibiting foreign-built vessels assures the United States of a robust shipbuilding sector. In reality, the restriction has produced a fleet that is significantly older than its international peers while failing to generate much in the way of new vessel construction. Last year, the US commercial shipbuilding industry accounted for 0.1 percent of global output, placing it roughly on par with Iran.

The shipyards that built the Statue of Liberty V and the Lucy Reinauer closed decades ago.

But back to the ferry. After a short time, we arrived at Liberty Island and climbed the 215 steps (useful for working off Thanksgiving gluttony) of the Statue of Liberty’s pedestal for some excellent views of New Jersey and Manhattan.

Later, we boarded another ferry on the wrong side of 40, the 1981-built Hornblower Freedom, for a quick stop at Ellis Island and then a return to Lower Manhattan. Along the way, I spotted the Staten Island Ferry, which appeared to be one of three Molinari class vessels delivered between 2003–2004. Purchased for $140 million, the Molinari class ferries drew attention in 2014 for their frequent mechanical problems.

More recently, three more similar-sized Staten Island ferries were purchased from a Florida shipyard for $314 million. Although it’s unclear what they would have cost if built abroad, the fact the shipyard that built the ferries has never constructed one for the competitive international market suggests an inflated price tag.

Arriving back at Battery Park, I couldn’t help thinking about the benefits that could be realized if Americans had access to vessels from world-class international shipyards. Imagine the cost savings. Imagine the efficiency gains from fleets of new, modern vessels zipping around New York Harbor and other US waters. Imagine if we had that kind of liberty.

0
FacebookTwitterGoogle +Pinterest
previous post
Pumping the Brakes on Ferrari (RACE)
next post
Pathways and Possible Solutions to the US Fiscal Crisis: Testimony

You may also like

A Flagrant Violation of Americans’ Privacy, Says Senator...

January 22, 2024

Journavx: A Promising Opioid Alternative, but Not a...

January 31, 2025

Taking Stock of Restrictive Financial Policies and Expansionary...

March 21, 2024

50+ Venezuelans Imprisoned in El Salvador Came to...

May 19, 2025

The Supreme Court Strikes Down Biden’s Loan‐​Forgiveness Program

June 30, 2023

Friday Feature: Navigate School Choice

October 25, 2024

Javier Milei at Cato Conference: “I’m a Liberal...

September 27, 2024

Friday Feature: Roots Academy

November 17, 2023

Trump’s Tariff Plan Will Raise Prices for Consumers,...

July 15, 2024

Biden’s New Immigrants: Employment, Education, Jobs, and Industries

November 14, 2024

    Get free access to all of the retirement secrets and income strategies from our experts! or Join The Exclusive Subscription Today And Get the Premium Articles Acess for Free

    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Trump ally stands firm against ‘big, beautiful bill’ despite pressure: ‘It’ll completely backfire’

      June 8, 2025
    • Rubio condemns assassination attempt on Colombian presidential candidate Miguel Uribe

      June 8, 2025
    • Obama WH physician says Biden doc should have performed cognitive test

      June 8, 2025
    • Trump warns of ‘serious consequences’ if Elon Musk funds Democrats

      June 7, 2025
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

      June 7, 2025
    • Musk deletes explosive posts about Trump and Epstein files

      June 7, 2025

    Categories

    • Business (8,152)
    • Investing (2,019)
    • Politics (15,571)
    • Stocks (3,136)
    • About us
    • Privacy Policy
    • Terms & Conditions

    Disclaimer: futureretirementsuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 futureretirementsuccess.com | All Rights Reserved