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Cost of dismantling fleet
Thursday, May 04, 2006 | No comments posted.
In 2001, federal officials estimated it would cost $350 million to dispose of the nation's obsolete military vessels. Congress has allocated money in most years since to pay for ship scrapping. The U.S. Maritime Administration has scrapped an average of 11 vessels per year since 2001, with new ships flowing into the non-retention fleet annually. The following is list of annual appropriations.
€ 2001: U.S. Department of Defense issued $10 million for the program.
€ 2002: 0
€ 2003: MARAD requested $11.1 million and received an additional $20 million through Department of Defense
€ 2004: $16.1 million
€ 2005: $19.5 million
€ 2006: $18 million
In fiscal year 2001, six ships were recycled in the United States at a cost of $220 per ton. In 2004, 13 ships were disposed at a cost of $118 per ton. The government attributed the drop in costs to increased competition among ship recyclers (from three certified companies to six) and increasing scrap metal prices. As of this year, the government has certified one more U.S. ship recycler.
Source: MARAD
€ 2001: U.S. Department of Defense issued $10 million for the program.
€ 2002: 0
€ 2003: MARAD requested $11.1 million and received an additional $20 million through Department of Defense
€ 2004: $16.1 million
€ 2005: $19.5 million
€ 2006: $18 million
In fiscal year 2001, six ships were recycled in the United States at a cost of $220 per ton. In 2004, 13 ships were disposed at a cost of $118 per ton. The government attributed the drop in costs to increased competition among ship recyclers (from three certified companies to six) and increasing scrap metal prices. As of this year, the government has certified one more U.S. ship recycler.
Source: MARAD
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