Seatrain Lines
Encyclopedia
Seatrain Lines was a shipping
company most responsible for the introduction of the standard international intermodal container
, most commonly 8 feet (2.4 m) high by 8 feet wide by 40 feet (12.2 m) long. This ignited an explosion in world trade, though the ups and downs in that trade made it very difficult for companies to ride the business.
, and owned the Hoboken Manufacturers Railroad that connected its facility to other railroads.
In 1929, Seatrain Lines began the innovative practice of hauling rail cars by ship
from the port of New York
to Havana
, Cuba
. Their two ships Seatrain New York and Seatrain Havana were each capable of carrying 100 fully loaded railcars on their four decks. This service continued until the early 1960s when operations to Cuba were discontinued due to rising political tensions. Seatrain tried to shift its ship/rail operations to a New York to Puerto Rico
run but this service was severely hampered by the inadequacies of rail transport in Puerto Rico
. Following the successful introduction of intermodal container transport by Sea-Land Inc. under Malcom McLean
(an unrelated enterprise), Seatrain Lines discontinued the transport of rail cars and utilized the new container technology in its service to Puerto Rico.
Transeastern Associates, a firm created in the early 1950s by Joseph Kahn
and Howard Pack
, bought Seatrain Lines in 1965 for $8.5 million. At the time of their purchase, Seatrain operated between New York and ports in Savannah, Georgia
, Texas City, Texas
, New Orleans and Puerto Rico
. Transeastern was folded into Seatrain in September 1966. At the time, Seatrain had lost more than $500,000 in a four-month period before the merger, while Transeastern's fleet had netted nearly $7 million in a ten-month period.
.
The Federal Government by way of the Economic Development Administration
of the US Department of Commerce advanced Seatrain $5 million in direct loans and guaranteed 90% of $82 million in loans from Chase Manhattan Bank
. Seatrain Lines injected $38 million of its own money into the project. The union
chosen to represent the shipyard production workers was the United Industrial Workers of North America.
Seatrain built four 220,000-ton Very Large Crude Carriers (supertankers), eight barges, one ice breaker barge and two roll-on/roll-off (Ro-Ro) ferries. One of the Ro-Ro ferries was never finished and was scrapped. Seatrain Shipbuilding also had a contract to rebuild the burned out hull of the Sea Witch
into a chemical tanker
.
January 20, 1975 Seatrain Shipbuilding started to lay off half of its 3,200 workers for an indefinite period of time. A few days later, the rest of the shipbuilders would receive their layoff notices, as well. The mass layoff was due to President Gerald Ford
's pocket veto of the cargo preference bill
. Twenty of the largest shipyards in the U.S. would experience similar layoffs.
The cargo preference bill would have required over time 20% of all the oil transported into the U.S. be transported on U.S. Flagged Tankers. President Ford called the bill inflationary. The cost of a gallon of gas would slowly rise by 20 cents over a few years. A few weeks later President Ford called for a $4 per barrel tax on imported oil. This would have increased the cost of gas and heating oil by over $1 per gallon. New England complained people would no longer be able to afford heating oil. The $4 tax went nowhere!
allowed tremendous cost saving versus so called "break-bulk" where each piece of cargo had to be loaded and unloaded individually. Malcom McLean
conceived the concept of containerization while sitting in his truck at the port waiting for a ship to be unloaded. Simply put, his idea was to separate the truck's "box" from its chassis and wheels.
The containers were relatively large since costs tend to be per container and not per tonne, and the dimensions were initially chosen to suit highway limits and rail bridges and tunnels; container sizes have since grown taller which has created problems with some smaller tunnels.
with the US Bankruptcy Court for the Southern District of New York. Seatrain's creditors filed $800 million dollars of claims but the amount was reduced by negotiation. The final figure was in the area of $515 million dollars. Seatrain's largest unsecured creditors were the pension and welfare fund of the New York Shipping Association-International Longshoremen's Association, the US Economic Development Administration, and Union Carbide
Corporation.
episode "For A Million, Why Not?", the means of transport out of Hawaii for a stolen armored truck
was a Seatrain container.
Shipping
Shipping has multiple meanings. It can be a physical process of transporting commodities and merchandise goods and cargo, by land, air, and sea. It also can describe the movement of objects by ship.Land or "ground" shipping can be by train or by truck...
company most responsible for the introduction of the standard international intermodal container
Intermodal container
An intermodal container is a standardized reusable steel box used for the safe, efficient and secure storage and movement of materials and products within a global containerized intermodal freight transport system...
, most commonly 8 feet (2.4 m) high by 8 feet wide by 40 feet (12.2 m) long. This ignited an explosion in world trade, though the ups and downs in that trade made it very difficult for companies to ride the business.
History
Seatrain was initially located in Hoboken, New JerseyHoboken, New Jersey
Hoboken is a city in Hudson County, New Jersey, United States. As of the 2010 United States Census, the city's population was 50,005. The city is part of the New York metropolitan area and contains Hoboken Terminal, a major transportation hub for the region...
, and owned the Hoboken Manufacturers Railroad that connected its facility to other railroads.
In 1929, Seatrain Lines began the innovative practice of hauling rail cars by ship
Train ferry
A train ferry is a ship designed to carry railway vehicles. Typically, one level of the ship is fitted with railway tracks, and the vessel has a door at the front and/or rear to give access to the wharves. In the United States, train ferries are sometimes referred to as "car ferries", as...
from the port of New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
to Havana
Havana
Havana is the capital city, province, major port, and leading commercial centre of Cuba. The city proper has a population of 2.1 million inhabitants, and it spans a total of — making it the largest city in the Caribbean region, and the most populous...
, Cuba
Cuba
The Republic of Cuba is an island nation in the Caribbean. The nation of Cuba consists of the main island of Cuba, the Isla de la Juventud, and several archipelagos. Havana is the largest city in Cuba and the country's capital. Santiago de Cuba is the second largest city...
. Their two ships Seatrain New York and Seatrain Havana were each capable of carrying 100 fully loaded railcars on their four decks. This service continued until the early 1960s when operations to Cuba were discontinued due to rising political tensions. Seatrain tried to shift its ship/rail operations to a New York to Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
run but this service was severely hampered by the inadequacies of rail transport in Puerto Rico
Rail transport in Puerto Rico
Rail transport in Puerto Rico currently consists of a passenger metro system in the island's metropolitan area of San Juan and a small short-line freight railroad in the southern city of Ponce. Its history can be traced back to the mid-19th century with the construction of a limited passenger line...
. Following the successful introduction of intermodal container transport by Sea-Land Inc. under Malcom McLean
Malcom McLean
Malcom Purcell McLean , born in Maxton, North Carolina, was an American entrepreneur, often called "the father of containerization"...
(an unrelated enterprise), Seatrain Lines discontinued the transport of rail cars and utilized the new container technology in its service to Puerto Rico.
Transeastern Associates, a firm created in the early 1950s by Joseph Kahn
Joseph Kahn (shipping executive)
Joseph Kahn , was a shipping industry executive who served as the chairman of Seatrain Lines, an innovator in the way ships carried freight.Kahn immigrated to the United States in 1930 from the Soviet Union...
and Howard Pack
Howard Pack
Howard Meade Pack , was a shipping industry executive who served as the chairman and president of Seatrain Lines, an innovator in the way ships carried freight....
, bought Seatrain Lines in 1965 for $8.5 million. At the time of their purchase, Seatrain operated between New York and ports in Savannah, Georgia
Savannah, Georgia
Savannah is the largest city and the county seat of Chatham County, in the U.S. state of Georgia. Established in 1733, the city of Savannah was the colonial capital of the Province of Georgia and later the first state capital of Georgia. Today Savannah is an industrial center and an important...
, Texas City, Texas
Texas City, Texas
Texas City is a city in Chambers and Galveston counties in the U.S. state of Texas. The population was 41,521 at the 2000 census. It is a part of the Houston–Sugar Land–Baytown, Texas Metropolitan Statistical Area.-History:...
, New Orleans and Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...
. Transeastern was folded into Seatrain in September 1966. At the time, Seatrain had lost more than $500,000 in a four-month period before the merger, while Transeastern's fleet had netted nearly $7 million in a ten-month period.
Seatrain Shipbuilding
In 1967, Seatrain Lines announced it would establish a new shipyard inside the former New York Naval Shipyard. Seatrain Lines had no shipbuilding experience but planned to build and charter out 5 VLCC's & 7 container ships for themselves. Seatrain Shipbuilding built 4 VLCC's, 8 barges, 1 Ice Breaker Barge. They started work on the burned out hull of the Sea Witch {Newport News finished} turning it into a chemical tankerChemical tanker
A chemical tanker is a type of tanker designed to transport chemicals in bulk.Ocean-going chemical tankers generally range from to in size, which is considerably smaller than the average size of other tanker types due to the specialised nature of their cargoes and the size restrictions of the...
.
The Federal Government by way of the Economic Development Administration
Economic Development Administration
The Economic Development Administration is an agency in the United States Department of Commerce that provides grants to economically distressed communities to generate new employment, help retain existing jobs and stimulate industrial and commercial growth.-History:The EDA was established under...
of the US Department of Commerce advanced Seatrain $5 million in direct loans and guaranteed 90% of $82 million in loans from Chase Manhattan Bank
Chase Manhattan Bank
JPMorgan Chase Bank, N.A., doing business as Chase, is a national bank that constitutes the consumer and commercial banking subsidiary of financial services firm JPMorgan Chase. The bank was known as Chase Manhattan Bank until it merged with J.P. Morgan & Co. in 2000...
. Seatrain Lines injected $38 million of its own money into the project. The union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
chosen to represent the shipyard production workers was the United Industrial Workers of North America.
Seatrain built four 220,000-ton Very Large Crude Carriers (supertankers), eight barges, one ice breaker barge and two roll-on/roll-off (Ro-Ro) ferries. One of the Ro-Ro ferries was never finished and was scrapped. Seatrain Shipbuilding also had a contract to rebuild the burned out hull of the Sea Witch
Sea Witch (container ship)
Sea Witch was a container ship which was involved in a serious collision in New York in 1973 with the oil tanker Esso Brussels."Flames from the burning oil radiated 200 feet out from both ships." Thirteen crew members of the Esso Brussels and the master and two crew members of the Sea Witch...
into a chemical tanker
Chemical tanker
A chemical tanker is a type of tanker designed to transport chemicals in bulk.Ocean-going chemical tankers generally range from to in size, which is considerably smaller than the average size of other tanker types due to the specialised nature of their cargoes and the size restrictions of the...
.
January 20, 1975 Seatrain Shipbuilding started to lay off half of its 3,200 workers for an indefinite period of time. A few days later, the rest of the shipbuilders would receive their layoff notices, as well. The mass layoff was due to President Gerald Ford
Gerald Ford
Gerald Rudolph "Jerry" Ford, Jr. was the 38th President of the United States, serving from 1974 to 1977, and the 40th Vice President of the United States serving from 1973 to 1974...
's pocket veto of the cargo preference bill
Cargo Preference Act
The Cargo Preference Act or Cargo Preference refers generally to legal requirements for the carriage of government-impelled cargoes on the vessels flagged within the registry of that government for the purpose of promoting a national merchant marine...
. Twenty of the largest shipyards in the U.S. would experience similar layoffs.
The cargo preference bill would have required over time 20% of all the oil transported into the U.S. be transported on U.S. Flagged Tankers. President Ford called the bill inflationary. The cost of a gallon of gas would slowly rise by 20 cents over a few years. A few weeks later President Ford called for a $4 per barrel tax on imported oil. This would have increased the cost of gas and heating oil by over $1 per gallon. New England complained people would no longer be able to afford heating oil. The $4 tax went nowhere!
Containerization
The key to the revolution was standardized containers, which initially could be stacked five high on board ships. ContainerizationContainerization
Containerization is a system of freight transport based on a range of steel intermodal containers...
allowed tremendous cost saving versus so called "break-bulk" where each piece of cargo had to be loaded and unloaded individually. Malcom McLean
Malcom McLean
Malcom Purcell McLean , born in Maxton, North Carolina, was an American entrepreneur, often called "the father of containerization"...
conceived the concept of containerization while sitting in his truck at the port waiting for a ship to be unloaded. Simply put, his idea was to separate the truck's "box" from its chassis and wheels.
The containers were relatively large since costs tend to be per container and not per tonne, and the dimensions were initially chosen to suit highway limits and rail bridges and tunnels; container sizes have since grown taller which has created problems with some smaller tunnels.
Bankruptcy
Seatrain filed for protection on February 11, 1981, under Chapter 11Chapter 11, Title 11, United States Code
Chapter 11 is a chapter of the United States Bankruptcy Code, which permits reorganization under the bankruptcy laws of the United States. Chapter 11 bankruptcy is available to every business, whether organized as a corporation or sole proprietorship, and to individuals, although it is most...
with the US Bankruptcy Court for the Southern District of New York. Seatrain's creditors filed $800 million dollars of claims but the amount was reduced by negotiation. The final figure was in the area of $515 million dollars. Seatrain's largest unsecured creditors were the pension and welfare fund of the New York Shipping Association-International Longshoremen's Association, the US Economic Development Administration, and Union Carbide
Union Carbide
Union Carbide Corporation is a wholly owned subsidiary of The Dow Chemical Company. It currently employs more than 2,400 people. Union Carbide primarily produces chemicals and polymers that undergo one or more further conversions by customers before reaching consumers. Some are high-volume...
Corporation.
In popular culture
In the 1971 Hawaii Five-OHawaii Five-O
Hawaii Five-O is an American police procedural drama series produced by CBS Productions and Leonard Freeman. Set in Hawaii, the show originally aired for twelve seasons from 1968 to 1980, and continues in reruns. The show featured a fictional state police unit run by Detective Steve McGarrett,...
episode "For A Million, Why Not?", the means of transport out of Hawaii for a stolen armored truck
Armored car (valuables)
A common meaning of armored car is as an armored van or truck, used in transporting valuables, such as large quantities of money . The armored car is a multifunctional vehicle designed to protect and ensure the well being of the transported individuals and/or contents...
was a Seatrain container.