2010-11_ANNUAL_REPORTS_-_FINAL_VERSION_(3)

For the period 2000-2010, the value of U.S.-flag water
transportation vessel assets increased by 77 percent, the
highest 10-year growth of the last 30 years (FIGURE 3).
During this period, carriers invested nearly 49 billion
dollars in new vessel assets including 38 ocean vessels,
850 tugs, 1,677 double-hull tank barges, 8,372 dry cargo
barges, and 221 offshore supply vessels. The investments
were largely to replace vessels built during the expansion
of the late 1970s.
In 2010, water transportation companies accounted for 35
percent of the vessel fixed assets, compared to 44 percent
10 years ago. Other vessel-owning companies include oil
companies, water transport support companies, financial
intermediaries and leasing companies.
FIGURE 3. U.S. Water Transportation
Vessel Assets, 1975-2010
(Current Cost, Billion Dollars)
90
75
60
45
30
15
0
1975 1980 1985 1990 1995 2000 2005 2010
Water Transport Companies
Other
For the period 2000-2010, the value of U.S.-flag
water transportation vessel assets increased by 77
percent, the highest 10-year growth of the last 30
years.
Source: Bureau of Economic Analysis, Fixed Asset
Accounts.
Growing Employment
Although new vessel assets generally require less manpower than those they replace, the new
technologies they employ have created new markets for marine transportation services. For example,
dynamically-positioned supply vessels were built to service the expanding deepwater oil exploration
FIGUE 4. Water Transportation Employment
by Occupation, May 2010
(Thousand Employees)
Shoreside,
30.0, 48%
Marine
Engineers,
5.1, 8%
Sailors,
15.3, 25%
Captains,
Mates &
Pilots,
11.9, 19%
In 2010, seafarers accounted for over 50 percent of
water transportation employment.
sector, and the vessels they replaced are now used to move
products in the coastwise trade. Furthermore, employment
in water transportation extends beyond the vessel to shoreside
logistics and support, port services, and shipbuilding
and repair. In 2010, water transportation and related
industries accounted for about 250,000 employees (FIGURE
4), comprised of roughly 62,000 for water transportation,
90,000 for port services, and 97,000 for shipbuilding and
repair. Of those employed in water transportation, about
32,000 were seafarers. Another 41,000 seafarers were
employed by government and other industry sectors such
as offshore oil and gas drilling, and port services.
The recession and slow recovery contributed to a 5 percent
decline (2007-2010) in seafarer employment. In contrast,
U.S. waterborne trade was down by 12 percent over the
same period. This suggests that as demand for water
transport services falls, service providers would rather keep
vessels in service (though underutilized) in the short-term than incur vessel lay-up and reactivation
costs. Of course, if waterborne trade does not recover in the long-term, marginal vessels will eventually
be laid up and/or scrapped and seafarer employment will likewise decline.
Conclusion
The U.S. water transportation industry has been in a period of renewal with major changes in trade,
fleets, and employment. Recent investments in water transportation assets have been tied to long-term
customer commitments which have integrated water transportation with production and distribution
processes, improved service to customers, and stabilized growth in seafarer employment and earnings.
11