The question is are the ships built price competitive in the world market?
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- Thread starter siegecrossbow
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AssassinsMace
Lieutenant General
Frankly the whole thing is a joke. Americans are losing jobs because they've priced themselves out of competition. Their labor costs too much. So what if South Korea invests into an American shipyard. It's going to be like what TSMC is facing in Arizona. Paying more for American labor and getting less from it than at home. It doesn't change the competition they will be facing with China. It's also just like how the US wants to partner with Japan and South Korea to make drones. Why? Because drones are an Asian thing that they're experts in. It's also like soy. Because China is turning away from American soybeans, they think other Asian countries will pick up the slack. Why? Because soy is an Asian thing?
Jones Act ships. Cost is not issue, getting ships is.
Then the shipyard is quite useless since there can’t be much demand for Jones Act ships.
I think these are all good questions. I believe the first batch of ships are Jones Act, but then they want to build LNG if I understood the news correctly. Either way, they will need subsidies to make up for cost differentials between the US and Asia.
I think what this is really about is getting access to South Korean design and production methodology and technology with the end goal of being able to better build and maintain their navy. The number of commercial ships produced will likely be small (but a large increase from a US perspective), but without foreign support and government subsidy in this commercial area I am not sure what they will do to fix their naval issues?
EDIT: The yard just got a contract for a "export viable" LNG carrier (the first in the US in five decades) and their is an option for another one.
If the shipyard has to get heavy government subsidies to stay competitive, the commericial side will never become viable.
It will never be competitive. The whole economy won't be competitive until they devalue the dollar with anything that will bring. They try to technically devalue dollar with these tariffs but it's difficult to swolllow that when i buy a shit from temu and comes with 8 dollars- a thing that i wanted, nobody forced me to buy- and this price includes taxes, added values and delivery from the other side of the globe, it means that this piece of shit is insanely cheap and insanely EASY to built over there because of productivity and the whole ecosystem. It doesn't require people with 5 masters and 3 Phd's to built it. They have to swollow that the only solution is to get back to the alpha of economy, and get people to work. But it's more profitable to keep them drugged like zombies. No need for investments, market competition and stuff like that for these greedy demons. Only dirty and easy money lol. It's so funny that USA has all the knowledge and economic power to do this but they forgot how to put the thing in correct order. And this will take time mister Knowitall Orangehead. Go send national guard to suppress innocent people. US history is full of stories about capitalists sending national guard to confront workers unions, often with casualties, people demanding their basic rights. Long Live the Land of Liberty
In fact nothing they have, that must compete in an open market, is competitive.
That is why they are pushing AI hard at the cost of everything else: getting people into their AI ecosystem means they can later software fence it off and charge prices with no alternatives.
I guess it depends on global demand really. I don't know anything about that though.
Again, I think the goal is bring over knowledge and technology from South Korea and maintain a small number of commercial orders so that they can better sustain their navy with a sort of civil military fusion.
The civilian side will be a joke. The whole thing smells like the US is forcing tech transfer from the South Koreans, just like the TSMC "investments".