Why the Jones Act is so very important: Read the FACTS and TRUTH before jumping to the wrong conclusions

Please read this (and share) to learn the truth about the Jones act before jumping to conclusions and assumptions. There’s more to this issue than sensational headlines about mariners not wanting to help hurricane victims in Puerto Rico. (Credit to gcaptain.com)

American Maritime Industry Fights Back Against False Claims on Jones Act and Relief Efforts in Puerto Rico

puertoricocontainership

Breaking: DHS Approves Temporary Jones Act Waiver for Puerto Rico

The American maritime industry is firing back against harsh criticism of the Jones Act in the media and by certain lawmakers in Washington amid the unfolding humanitarian crisis in Puerto Rico.

Attacks on the Jones Act intensified after the Department of Homeland Security seemingly denied a request to waive Jones Act requirements for Puerto Rico in the wake of Hurrican Maria on Tuesday, saying a waiver was not needed at this time because there are enough American ships bringing supplies to the island.

“The limitation is going to be port capacity to offload and transit, not vessel availability,” a spokesman for the DHS said Tuesday.

On Wednesday, however, the DHS said it had not made up its mind on the issue and it was still considering a request by members of Congress to waive the shipping restrictions, but so far it had not received any formal requests from shippers or other branches of the federal government to waive the law.

“We are considering the underlying issues and are evaluating whether a waiver should be issued,” a senior Homeland Security official told reporters on Wednesday.

The Merchant Marine Act of 1920, aka the Jones Act, is a federal law requiring goods shipping between two ports in the United States be carried on American-built ships that are mostly owned and crewed by American citizens. The law applies to ships transporting goods between the U.S. mainland and Puerto Rico, although not the U.S. Virgin Islands.

To get the facts straight on the Jones Act’s impact on hurricane relief efforts in Puerto Rico, we reached out to the American Maritime Partnership, a group representing more than 400 U.S. maritime companies from Alaska to Puerto Rico.

“A steady stream of additional supplies keeps arriving in Puerto Rico on American vessels and on international ships from around the world. The problem now is distributing supplies from Puerto Rico’s ports inland by surface transportation,” said Thomas Allegretti, Chairman of the American Maritime Partnership.

Since Maria hit, American maritime companies have moved approximately 9,500 containers of goods in Puerto Rico to help the territory and its residents with the recovery. Foreign-flag vessels are also arriving at the island as they normally do when transporting goods not coming from the United States.

Allegretti offered another statement later in the day amid reports that thousands of shipping containers loaded with vital supplies were stacking up San Juan:

“Earlier today, the President responded to a question on the White House lawn regarding the need to waive the Jones Act for the recovery in Puerto Rico.  He mentioned that the shippers are not in favor of waiving the Jones Act. He is right and here is why.  What we are seeing clearly on the ground is thousands of cargo containers piling up at the port of San Juan, filled with essential goods that the Puerto Rican people desperately need, but not nearly enough trucks and clear roads to distribute the goods.  So, the problem at the port is a lack of trucks and delivery routes, not a lack of vessels. 

The President was also right when he said that we have a lot of ships out there right now. Much needed cargo has been delivered to the port, and an armada of U.S. and foreign vessels continues to arrive.

We continue to work hand in glove with the FEMA and the rest of the Administration to help find solutions to get the goods distributed from the ports to our fellow Americans, and the men and women of American and Puerto Rican maritime, along with foreign shippers, are answering the call.” – Thomas Allegretti, Chairman, American Maritime Partnership

In response to numerous reports in the media claiming that the Jones Act is somehow hindering relief efforts in Puerto Rico, the AMP provided the following fact check to hopefully set the record straight:

Claim: The Jones Act prevents cargo from foreign vessels to reach Puerto Rico.

False. Any foreign vessel can call on Puerto Rico. The Government Accountability Office (GAO) noted in a 2011 report that two-thirds of the ships serving Puerto Rico were foreign ships. 55 different foreign carriers provided imported cargo to Puerto Rico in a single month, as cited as an example by GAO. Foreign shipping companies compete directly with the American shipping companies in an intensely competitive transportation market.

Claim: Import costs are at least twice as high in Puerto Rico as in neighboring islands on account of the Jones Act.

There is no study that supports this statement in any way. In fact, anecdotal evidence about rates indicates that the opposite is true. For example, one analysis shows it is 40% more expensive to ship goods from the U.S. mainland on foreign vessels to the U.S. Virgin Islands (not subject to the Jones Act) than on Jones Act vessels to Puerto Rico.

Claim: Jones Act vessels lack sufficient capacity to reach communities impacted by Hurricane Maria.

In the immediate aftermath of the hurricane, one hundred percent of the island was without power, and roads were blocked by downed trees and debris. Goods are arriving to the island on vessels but bottlenecks on the roads are limiting arrival to the communities. The largest bottleneck is not getting goods to the island, but delivering goods once they arrive.

Domestic maritime companies have the equipment at their terminals to handle the throughput at the terminals without overwhelming the shoreside and inland infrastructure. Domestic maritime roll-on/roll-off barges can immediately discharge cargoes while work is performed to restore power for cranes and other equipment at the terminals. Domestic maritime containerships can deliver cargoes from the U.S. mainland to Puerto Rico in three days.

Claim: A Jones Act waiver would add efficiency to the delivery of essential cargoes to impacted communities.

Because of infrastructure challenges, a Jones Act waiver could hinder, not help, relief efforts. A Jones Act waiver could overwhelm the system, creating unnecessary backlogs and causing confusion on the distribution of critical supplies throughout the island. Already there are logistical bottlenecks for Jones Act cargoes as a result of the inability to distribute goods within Puerto Rico due to road blockages, communications disruptions, and concerns about equipment shortages, including trucks, chassis, and containers.

Claim: The Jones Act adds significantly to the cost of goods in Puerto Rico.

Over the last decade, a parade of politicians and “experts” have attempted to estimate the so- called “cost” of the Jones Act in Puerto Rico. Because the estimates have been wildly contradictory, in 2012, Puerto Rico Delegate Pierluisi asked the GAO to determine the true “cost.” The GAO studied the issue for more than a year and debunked the previous estimates. First, the GAO said there are far too many factors that impact the price of a consumer good to determine the supposed cost related to shipping, much less the Jones Act. Second, the GAO said, one could not truly estimate the cost unless one knew which American laws would be applied to foreign ships if they were allowed to enter the domestic trades, which would certainly increase the cost of foreign shipping.

Claim: Changing the Jones Act in Puerto Rico will help the island, especially considering its current economic crisis.

A GAO study on Puerto Rico listed a number of potential harms to the territory itself if the Jones Act were changed, including the possible loss of the stable service the island currently enjoys under the Jones Act and the loss of jobs on the island. Moreover, American domestic carriers are making some of the largest private sector investments currently underway in Puerto Rico by investing nearly $1 billion in new vessels, equipment, and infrastructure. They employ hundreds of Puerto Rican American citizens on the island and on vessels serving the market, providing highly reliable, low-cost maritime and logistics services. These private sector jobs and reliable services are important to the long-term recovery of the Puerto Rican economy and would be jeopardized by changes to the Jones Act.

“The men and women of the American maritime industry stand committed to the communities in Puerto Rico impacted by Hurricane Maria, where many of our own employees and their families reside and are working around the clock to respond to the communities in need,” said Allegretti. “As our industry has done in past natural disasters, including most recently Hurricanes Harvey and Irma, we are actively working with the Administration, FEMA, MARAD, and relief organizations to deploy quickly and deliver essential goods like food, fuel, first aid supplies, and building materials.”

Suggested Reading: 

http://gcaptain.com/american-maritime-industry-fights-back-false-claims-regarding-jones-act-relief-efforts-puerto-rico/

 

 

 

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Remember the Merchant Mariner on Veteran’s Day

And this year let’s not forget the thirty-three lives that were lost on El Faro.
Merchant Marine recruitingposterMy tugboat man is a proud member of the United States Merchant Marine.

He is a merchant mariner.

He also served in Desert Storm.

From the little he’s shared with me, it was a dangerous mission. I met him right after he returned, but I didn’t hear about his involvement until a couple years later when I was updating and re-typing his resume. (On a typewriter!)

Most Americans honor those who’ve served in the military, and we can name the branches of the armed services — Army, Air Force, Navy, and the Marines.

Here on the Pacific Ocean, we always remember to include the United States Coast Guard.fightingMerchant Marine

Hardly anyone would think to include the Merchant Marine, which has long been referred to as the forgotten branch of the military, according to Jack Beritzhoff, former merchant seaman and author of Sail Away: Journeys of a Merchant Seaman. 

“People don’t remember that the Merchant Marine was around before the Navy —  during the Revolutionary War, the Colonies hired merchantmen to protect our shores and cargoes.

At the height of the Second World War, when I served, there were over 250,000 merchant sailors bringing supplies to American forces and our allies, getting torpedoed by U-boats in the Atlantic and strafed by Japanese planes in the Pacific.

There are a lot of historians who say that it was our merchant fleet that won the war as much as anything.”

Please take a minute to learn a little more about the maritime industry and don’t forget the importance of our mariners.

nowfor7seasThe American Maritime Partnership has given me permission to reprint some of their excellent articles.

OVERVIEW OF THE DOMESTIC MARITIME INDUSTRY

With more than 40,000 vessels engaged in domestic waterborne commerce, it is clear that this commercial armada is as diverse as the nation it serves. These vessels represent an investment of nearly thirty billion dollars.

Here are some more facts and figures that illustrate the size and scope of the domestic maritime industry:

  • A billion-plus tons of cargo annually, with a market value of $400 billion.
  • 100 million passengers annually ride ferries and excursion boats.
  • 74,000 jobs on vessels and at shipyards.
  • 500,000 jobs in total.
  • $100 billion in annual economic output.
  • $29 billion in annual wages spent in virtually every community in the United States.
  • $11 billion in taxes per annum.
  • $46 billion added to the value of U.S. economic output each year.

MAJOR CARGOS:

  • Grain, coal, and other dry-bulk cargos and crude and petroleum via inland rivers.
  • Iron ore, limestone and coal across the Great Lakes.
  • Refined petroleum products along the East and Gulf coasts.
  • Supplies for Gulf offshore operations.
  • Merchandise and construction materials to and from Alaska, Hawaii, Puerto Rico, and Guam.

The domestic trades serve more than forty states and ninety percent of the population.

America’s domestic trades have been the birthplace of innovations that transformed waterborne commerce worldwide:

  • Containerships
  • Self-unloading vessels
  • Articulated tug-barges
  • Trailer barges
  • Chemical parcel tankers
  • Railroad-on-barge carfloats
  • River flotilla towing systems

Click here to see a gallery of photos of vessels in the domestic trades.

Safety is another benefit that flows from U.S. laws regulating domestic waterborne commerce. U.S.-flag vessels are built and operated to the world’s highest safety standards. And no other nation sets a higher standard for mariner credential

Why We Need the Jones Act

AMERICA IS MORE SECURE BECAUSE OF ITS STRONG DOMESTIC MARITIME INDUSTRY

Under U.S. domestic maritime laws, commonly known as the Jones Act, cargo shipped between two U.S. ports must move on American vessels. These laws are critical for American economic, national, and homeland security, which is why they have enjoyed the support of the U.S. Navy, Members of Congress of both parties, and every President in modern history.

THE DOMESTIC MARITIME INDUSTRY IS KEY TO AMERICA’S ECONOMIC STRENGTH AND SECURITY.

From the earliest days of our nation, shipping has been the grease for America’s economic engine. Today, the maritime industry is by far the most economical form of domestic transportation, moving more than 1 billion tons of cargo annually at a fraction of the cost of other modes. Remarkably, the domestic maritime industry transports about one-quarter of America’s domestic cargo for just 2% of the national freight bill. Fundamental U.S. industries depend on the efficiencies and economies of domestic maritime transportation to move raw materials and other critical commodities.

America’s domestic shipping industry is responsible for nearly 500,000 jobs and more than one hundred billion dollars in annual economic output, according to a recent study by PricewaterhouseCoopers for the Transportation Institute. Labor compensation associated with the domestic fleet exceeds twenty-nine billion dollars annually with those wages spent in virtually every corner of the United States. The American domestic fleet, with more than 40,000 vessels, is the envy of the world. Every job in a domestic shipyard results in four additional jobs elsewhere in the U.S. economy.

A small number of individuals and organizations support repeal of the Jones Act, which would allow foreign-built, foreign-operated, foreign-manned, and foreign-owned vessels to operate on American waters. The result would be to take a core American industry like shipbuilding and transfer it overseas to nations like China and South Korea, which heavily subsidize their shipyards and play by their own set of rules. Additional losses would occur from the outsourcing of American shipping jobs to foreign nations. Particularly at a time of severe economic dislocation in the U.S., it makes little if any sense to send American jobs overseas and undermine an essential American industry.

THE U.S. NAVY SAYS THE JONES ACT IS CRITICAL TO NATIONAL SECURITY.

The U.S. Navy’s position is clear – repeal of the Jones Act would “hamper [America’s] ability to meet strategic sealift requirements and Navy shipbuilding.” Over the past several decades the Navy has consistently opposed efforts to repeal or modify key U.S. maritime laws.

America’s domestic fleet is an important part of the national maritime infrastructure that helps ensure there will be ample U.S. sealift capacity to defend our nation. American ships, crews to man them, ship construction and repair yards, intermodal equipment, terminals, cargo tracking systems, and other infrastructure can be made available to the U.S. military at a moment’s notice in times of war, national emergency, or even in peacetime. In addition, during a major mobilization, American domestic vessels move defense cargoes to coastal ports for overseas shipments.

During Operations Enduring Freedom and Iraqi Freedom (2002 – 2010), U.S.-flag commercial vessels, including ships drawn from the domestic trades, transported 90% of all military cargoes moved to Afghanistan and Iraq.

The Defense Department (“DoD”) has consistently emphasized the military importance of maintaining a strong domestic shipbuilding industry, stating “[W]e believe that the ability of the nation to build and maintain a U.S. flagged fleet is in the national interest, [and] we also believe it is in the interest of the DoD for U.S. shipbuilders to maintain a construction capability for commercial vessels.” A study by the U.S. Department of Commerce, Bureau of Export Administration, reached a similar conclusion:

The U.S. shipbuilding and repair industry is a strategic asset analogous to the aerospace, computer, and electronic industries. Frontline warships and support vessels are vital for maintaining America’s national security and for protecting interests abroad. In emergency situations, America’s cargo carrying capacity is indispensable for moving troops and supplies to areas of conflict overseas. A domestic capability to produce and repair warships, support vessels, and commercial vessels is not only a strategic asset but also fundamental to national security.

AMERICA’S DOMESTIC MARITIME INDUSTRY MAKES OUR HOMELAND MORE SECURE.

As America works to secure its borders, it must also secure its waterways. Homeland security is enhanced by the requirement for American vessels that operate in full accordance with U.S. laws and with the consistent oversight of the U.S. government. In that respect, the Jones Act is as effective a homeland security measure as any federal agency could ever write and enforce.

Today, it takes a small army of Customs agents, Immigration Services officials, homeland security staff, and others to regulate foreign ships that enter and exit the U.S. in international trade, even within the carefully controlled structure of U.S. ports. However, there is no precedent for allowing foreign-controlled ships operated by foreign crews to move freely throughout the tens of thousands of miles of America’s navigational “bloodstream.” Inland lakes, rivers and waterways go to virtually every corner of the nation.

There is considerable uncertainty about what laws would apply to a foreign shipping company operating in U.S. domestic commerce if the Jones Act were repealed. However, it is certain that the task of monitoring, regulating, and overseeing potentially tens of thousands of foreign-controlled, foreign-crewed vessels in internal U.S. commerce would be difficult at best and fruitless at worst. Repeal or modification of the key domestic maritime laws would make America more vulnerable and less secure.

U.S. MARITIME LAWS ENSURE A LEVEL PLAYING FIELD FOR AMERICAN BUSINESSES.

American domestic maritime laws ensure a level playing field by requiring that all shipping and shipbuilding companies that operate in U.S. domestic commerce play by the same set of rules. Allowing foreign companies to operate in the U.S. outside of our immigration, employment, safety, environmental, tax, labor, and others laws would be unfair. American laws are often stricter than the laws that govern shipping and shipbuilding in international trades. No other industry operates exclusively in American domestic commerce yet outside of our laws (e.g., paying third world wages to its employees). No country in the world would – or does – permit businesses to operate domestically without complying with its national and local laws. Companies that do business here must fully obey American laws, regulations and other rules.

CONCLUSION: IT’S ABOUT SECURITY

You don’t need to be an expert in the maritime industry to know that repeal or modification of the key domestic maritime laws would make America less secure economically and militarily. Repeal of those laws would provide little benefit while making America more vulnerable.

Remember the Merchant Mariner on Veteran’s Day

Merchant Marine recruitingposterMy tugboat man is a proud member of the United States Merchant Marine.

He’s a merchant mariner.

He also served in Desert Storm. From the little he’s shared with me, it was a dangerous mission. I met him right after he returned, but I didn’t hear about his involvement until a couple years later when I was helping him update his resume. The merchant ship he was on supported the war efforts; it was unarmed, and he maintains that he saw no combat.

He’s humble and full of admiration for the true heroes who make the ultimate sacrifice for our country.

Most Americans honor those who’ve served in the military, and we can name the branches of the armed services — Army, Air Force, Navy, and the Marines.

Here on the Pacific Ocean, we always remember to include the United States Coast Guard.fightingMerchant Marine

Hardly anyone would think to include the Merchant Marine, which has long been referred to as the forgotten branch of the military, according to Jack Beritzhoff, former merchant seaman and author of Sail Away: Journeys of a Merchant Seaman. 

“People don’t remember that the Merchant Marine was around before the Navy —  during the Revolutionary War, the Colonies hired merchantmen to protect our shores and cargoes.

At the height of the Second World War, when I served, there were over 250,000 merchant sailors bringing supplies to American forces and our allies, getting torpedoed by U-boats in the Atlantic and strafed by Japanese planes in the Pacific.

There are a lot of historians who say that it was our merchant fleet that won the war as much as anything.”

Please take a minute to learn a little more about the maritime industry and don’t forget the importance of our mariners.

nowfor7seasThe American Maritime Partnership has given me permission to reprint some of their excellent articles.

OVERVIEW OF THE DOMESTIC MARITIME INDUSTRY

With more than 40,000 vessels engaged in domestic waterborne commerce, it is clear that this commercial armada is as diverse as the nation it serves. These vessels represent an investment of nearly thirty billion dollars.

Here are some more facts and figures that illustrate the size and scope of the domestic maritime industry:

  • A billion-plus tons of cargo annually, with a market value of $400 billion.
  • 100 million passengers annually ride ferries and excursion boats.
  • 74,000 jobs on vessels and at shipyards.
  • 500,000 jobs in total.
  • $100 billion in annual economic output.
  • $29 billion in annual wages spent in virtually every community in the United States.
  • $11 billion in taxes per annum.
  • $46 billion added to the value of U.S. economic output each year.

MAJOR CARGOS:

  • Grain, coal, and other dry-bulk cargos and crude and petroleum via inland rivers.
  • Iron ore, limestone and coal across the Great Lakes.
  • Refined petroleum products along the East and Gulf coasts.
  • Supplies for Gulf offshore operations.
  • Merchandise and construction materials to and from Alaska, Hawaii, Puerto Rico, and Guam.

The domestic trades serve more than forty states and ninety percent of the population.

America’s domestic trades have been the birthplace of innovations that transformed waterborne commerce worldwide:

  • Containerships
  • Self-unloading vessels
  • Articulated tug-barges
  • Trailer barges
  • Chemical parcel tankers
  • Railroad-on-barge carfloats
  • River flotilla towing systems

Click here to see a gallery of photos of vessels in the domestic trades.

Safety is another benefit that flows from U.S. laws regulating domestic waterborne commerce. U.S.-flag vessels are built and operated to the world’s highest safety standards. And no other nation sets a higher standard for mariner credential

Why We Need the Jones Act

AMERICA IS MORE SECURE BECAUSE OF ITS STRONG DOMESTIC MARITIME INDUSTRY

Under U.S. domestic maritime laws, commonly known as the Jones Act, cargo shipped between two U.S. ports must move on American vessels. These laws are critical for American economic, national, and homeland security, which is why they have enjoyed the support of the U.S. Navy, Members of Congress of both parties, and every President in modern history.

THE DOMESTIC MARITIME INDUSTRY IS KEY TO AMERICA’S ECONOMIC STRENGTH AND SECURITY.

From the earliest days of our nation, shipping has been the grease for America’s economic engine. Today, the maritime industry is by far the most economical form of domestic transportation, moving more than 1 billion tons of cargo annually at a fraction of the cost of other modes. Remarkably, the domestic maritime industry transports about one-quarter of America’s domestic cargo for just 2% of the national freight bill. Fundamental U.S. industries depend on the efficiencies and economies of domestic maritime transportation to move raw materials and other critical commodities.

America’s domestic shipping industry is responsible for nearly 500,000 jobs and more than one hundred billion dollars in annual economic output, according to a recent study by PricewaterhouseCoopers for the Transportation Institute. Labor compensation associated with the domestic fleet exceeds twenty-nine billion dollars annually with those wages spent in virtually every corner of the United States. The American domestic fleet, with more than 40,000 vessels, is the envy of the world. Every job in a domestic shipyard results in four additional jobs elsewhere in the U.S. economy.

A small number of individuals and organizations support repeal of the Jones Act, which would allow foreign-built, foreign-operated, foreign-manned, and foreign-owned vessels to operate on American waters. The result would be to take a core American industry like shipbuilding and transfer it overseas to nations like China and South Korea, which heavily subsidize their shipyards and play by their own set of rules. Additional losses would occur from the outsourcing of American shipping jobs to foreign nations. Particularly at a time of severe economic dislocation in the U.S., it makes little if any sense to send American jobs overseas and undermine an essential American industry.

THE U.S. NAVY SAYS THE JONES ACT IS CRITICAL TO NATIONAL SECURITY.

The U.S. Navy’s position is clear – repeal of the Jones Act would “hamper [America’s] ability to meet strategic sealift requirements and Navy shipbuilding.” Over the past several decades the Navy has consistently opposed efforts to repeal or modify key U.S. maritime laws.

America’s domestic fleet is an important part of the national maritime infrastructure that helps ensure there will be ample U.S. sealift capacity to defend our nation. American ships, crews to man them, ship construction and repair yards, intermodal equipment, terminals, cargo tracking systems, and other infrastructure can be made available to the U.S. military at a moment’s notice in times of war, national emergency, or even in peacetime. In addition, during a major mobilization, American domestic vessels move defense cargoes to coastal ports for overseas shipments.

During Operations Enduring Freedom and Iraqi Freedom (2002 – 2010), U.S.-flag commercial vessels, including ships drawn from the domestic trades, transported 90% of all military cargoes moved to Afghanistan and Iraq.

The Defense Department (“DoD”) has consistently emphasized the military importance of maintaining a strong domestic shipbuilding industry, stating “[W]e believe that the ability of the nation to build and maintain a U.S. flagged fleet is in the national interest, [and] we also believe it is in the interest of the DoD for U.S. shipbuilders to maintain a construction capability for commercial vessels.” A study by the U.S. Department of Commerce, Bureau of Export Administration, reached a similar conclusion:

The U.S. shipbuilding and repair industry is a strategic asset analogous to the aerospace, computer, and electronic industries. Frontline warships and support vessels are vital for maintaining America’s national security and for protecting interests abroad. In emergency situations, America’s cargo carrying capacity is indispensable for moving troops and supplies to areas of conflict overseas. A domestic capability to produce and repair warships, support vessels, and commercial vessels is not only a strategic asset but also fundamental to national security.

AMERICA’S DOMESTIC MARITIME INDUSTRY MAKES OUR HOMELAND MORE SECURE.

As America works to secure its borders, it must also secure its waterways. Homeland security is enhanced by the requirement for American vessels that operate in full accordance with U.S. laws and with the consistent oversight of the U.S. government. In that respect, the Jones Act is as effective a homeland security measure as any federal agency could ever write and enforce.

Today, it takes a small army of Customs agents, Immigration Services officials, homeland security staff, and others to regulate foreign ships that enter and exit the U.S. in international trade, even within the carefully controlled structure of U.S. ports. However, there is no precedent for allowing foreign-controlled ships operated by foreign crews to move freely throughout the tens of thousands of miles of America’s navigational “bloodstream.” Inland lakes, rivers and waterways go to virtually every corner of the nation.

There is considerable uncertainty about what laws would apply to a foreign shipping company operating in U.S. domestic commerce if the Jones Act were repealed. However, it is certain that the task of monitoring, regulating, and overseeing potentially tens of thousands of foreign-controlled, foreign-crewed vessels in internal U.S. commerce would be difficult at best and fruitless at worst. Repeal or modification of the key domestic maritime laws would make America more vulnerable and less secure.

U.S. MARITIME LAWS ENSURE A LEVEL PLAYING FIELD FOR AMERICAN BUSINESSES.

American domestic maritime laws ensure a level playing field by requiring that all shipping and shipbuilding companies that operate in U.S. domestic commerce play by the same set of rules. Allowing foreign companies to operate in the U.S. outside of our immigration, employment, safety, environmental, tax, labor, and others laws would be unfair. American laws are often stricter than the laws that govern shipping and shipbuilding in international trades. No other industry operates exclusively in American domestic commerce yet outside of our laws (e.g., paying third world wages to its employees). No country in the world would – or does – permit businesses to operate domestically without complying with its national and local laws. Companies that do business here must fully obey American laws, regulations and other rules.

CONCLUSION: IT’S ABOUT SECURITY

You don’t need to be an expert in the maritime industry to know that repeal or modification of the key domestic maritime laws would make America less secure economically and militarily. Repeal of those laws would provide little benefit while making America more vulnerable.

Remember the Merchant Mariner on Veteran’s Day

Merchant Marine recruitingposterMy tugboat man is a proud member of the United States Merchant Marine.

He is a merchant mariner.

He also served in Desert Storm.

From the little he’s shared with me, it was a dangerous mission. I met him right after he returned, but I didn’t hear about his involvement until a couple years later when I was updating and re-typing his resume. (On a typewriter!)

Most Americans honor those who’ve served in the military, and we can name the branches of the armed services — Army, Air Force, Navy, and the Marines.

Here on the Pacific Ocean, we always remember to include the United States Coast Guard.fightingMerchant Marine

Hardly anyone would think to include the Merchant Marine, which has long been referred to as the forgotten branch of the military, according to Jack Beritzhoff, former merchant seaman and author of Sail Away: Journeys of a Merchant Seaman. 

“People don’t remember that the Merchant Marine was around before the Navy —  during the Revolutionary War, the Colonies hired merchantmen to protect our shores and cargoes.

At the height of the Second World War, when I served, there were over 250,000 merchant sailors bringing supplies to American forces and our allies, getting torpedoed by U-boats in the Atlantic and strafed by Japanese planes in the Pacific.

There are a lot of historians who say that it was our merchant fleet that won the war as much as anything.”

Please take a minute to learn a little more about the maritime industry and don’t forget the importance of our mariners.

nowfor7seasThe American Maritime Partnership has given me permission to reprint some of their excellent articles.

OVERVIEW OF THE DOMESTIC MARITIME INDUSTRY

With more than 40,000 vessels engaged in domestic waterborne commerce, it is clear that this commercial armada is as diverse as the nation it serves. These vessels represent an investment of nearly thirty billion dollars.

Here are some more facts and figures that illustrate the size and scope of the domestic maritime industry:

  • A billion-plus tons of cargo annually, with a market value of $400 billion.
  • 100 million passengers annually ride ferries and excursion boats.
  • 74,000 jobs on vessels and at shipyards.
  • 500,000 jobs in total.
  • $100 billion in annual economic output.
  • $29 billion in annual wages spent in virtually every community in the United States.
  • $11 billion in taxes per annum.
  • $46 billion added to the value of U.S. economic output each year.

MAJOR CARGOS:

  • Grain, coal, and other dry-bulk cargos and crude and petroleum via inland rivers.
  • Iron ore, limestone and coal across the Great Lakes.
  • Refined petroleum products along the East and Gulf coasts.
  • Supplies for Gulf offshore operations.
  • Merchandise and construction materials to and from Alaska, Hawaii, Puerto Rico, and Guam.

The domestic trades serve more than forty states and ninety percent of the population.

America’s domestic trades have been the birthplace of innovations that transformed waterborne commerce worldwide:

  • Containerships
  • Self-unloading vessels
  • Articulated tug-barges
  • Trailer barges
  • Chemical parcel tankers
  • Railroad-on-barge carfloats
  • River flotilla towing systems

Click here to see a gallery of photos of vessels in the domestic trades.

Safety is another benefit that flows from U.S. laws regulating domestic waterborne commerce. U.S.-flag vessels are built and operated to the world’s highest safety standards. And no other nation sets a higher standard for mariner credential

Why We Need the Jones Act

AMERICA IS MORE SECURE BECAUSE OF ITS STRONG DOMESTIC MARITIME INDUSTRY

Under U.S. domestic maritime laws, commonly known as the Jones Act, cargo shipped between two U.S. ports must move on American vessels. These laws are critical for American economic, national, and homeland security, which is why they have enjoyed the support of the U.S. Navy, Members of Congress of both parties, and every President in modern history.

THE DOMESTIC MARITIME INDUSTRY IS KEY TO AMERICA’S ECONOMIC STRENGTH AND SECURITY.

From the earliest days of our nation, shipping has been the grease for America’s economic engine. Today, the maritime industry is by far the most economical form of domestic transportation, moving more than 1 billion tons of cargo annually at a fraction of the cost of other modes. Remarkably, the domestic maritime industry transports about one-quarter of America’s domestic cargo for just 2% of the national freight bill. Fundamental U.S. industries depend on the efficiencies and economies of domestic maritime transportation to move raw materials and other critical commodities.

America’s domestic shipping industry is responsible for nearly 500,000 jobs and more than one hundred billion dollars in annual economic output, according to a recent study by PricewaterhouseCoopers for the Transportation Institute. Labor compensation associated with the domestic fleet exceeds twenty-nine billion dollars annually with those wages spent in virtually every corner of the United States. The American domestic fleet, with more than 40,000 vessels, is the envy of the world. Every job in a domestic shipyard results in four additional jobs elsewhere in the U.S. economy.

A small number of individuals and organizations support repeal of the Jones Act, which would allow foreign-built, foreign-operated, foreign-manned, and foreign-owned vessels to operate on American waters. The result would be to take a core American industry like shipbuilding and transfer it overseas to nations like China and South Korea, which heavily subsidize their shipyards and play by their own set of rules. Additional losses would occur from the outsourcing of American shipping jobs to foreign nations. Particularly at a time of severe economic dislocation in the U.S., it makes little if any sense to send American jobs overseas and undermine an essential American industry.

THE U.S. NAVY SAYS THE JONES ACT IS CRITICAL TO NATIONAL SECURITY.

The U.S. Navy’s position is clear – repeal of the Jones Act would “hamper [America’s] ability to meet strategic sealift requirements and Navy shipbuilding.” Over the past several decades the Navy has consistently opposed efforts to repeal or modify key U.S. maritime laws.

America’s domestic fleet is an important part of the national maritime infrastructure that helps ensure there will be ample U.S. sealift capacity to defend our nation. American ships, crews to man them, ship construction and repair yards, intermodal equipment, terminals, cargo tracking systems, and other infrastructure can be made available to the U.S. military at a moment’s notice in times of war, national emergency, or even in peacetime. In addition, during a major mobilization, American domestic vessels move defense cargoes to coastal ports for overseas shipments.

During Operations Enduring Freedom and Iraqi Freedom (2002 – 2010), U.S.-flag commercial vessels, including ships drawn from the domestic trades, transported 90% of all military cargoes moved to Afghanistan and Iraq.

The Defense Department (“DoD”) has consistently emphasized the military importance of maintaining a strong domestic shipbuilding industry, stating “[W]e believe that the ability of the nation to build and maintain a U.S. flagged fleet is in the national interest, [and] we also believe it is in the interest of the DoD for U.S. shipbuilders to maintain a construction capability for commercial vessels.” A study by the U.S. Department of Commerce, Bureau of Export Administration, reached a similar conclusion:

The U.S. shipbuilding and repair industry is a strategic asset analogous to the aerospace, computer, and electronic industries. Frontline warships and support vessels are vital for maintaining America’s national security and for protecting interests abroad. In emergency situations, America’s cargo carrying capacity is indispensable for moving troops and supplies to areas of conflict overseas. A domestic capability to produce and repair warships, support vessels, and commercial vessels is not only a strategic asset but also fundamental to national security.

AMERICA’S DOMESTIC MARITIME INDUSTRY MAKES OUR HOMELAND MORE SECURE.

As America works to secure its borders, it must also secure its waterways. Homeland security is enhanced by the requirement for American vessels that operate in full accordance with U.S. laws and with the consistent oversight of the U.S. government. In that respect, the Jones Act is as effective a homeland security measure as any federal agency could ever write and enforce.

Today, it takes a small army of Customs agents, Immigration Services officials, homeland security staff, and others to regulate foreign ships that enter and exit the U.S. in international trade, even within the carefully controlled structure of U.S. ports. However, there is no precedent for allowing foreign-controlled ships operated by foreign crews to move freely throughout the tens of thousands of miles of America’s navigational “bloodstream.” Inland lakes, rivers and waterways go to virtually every corner of the nation.

There is considerable uncertainty about what laws would apply to a foreign shipping company operating in U.S. domestic commerce if the Jones Act were repealed. However, it is certain that the task of monitoring, regulating, and overseeing potentially tens of thousands of foreign-controlled, foreign-crewed vessels in internal U.S. commerce would be difficult at best and fruitless at worst. Repeal or modification of the key domestic maritime laws would make America more vulnerable and less secure.

U.S. MARITIME LAWS ENSURE A LEVEL PLAYING FIELD FOR AMERICAN BUSINESSES.

American domestic maritime laws ensure a level playing field by requiring that all shipping and shipbuilding companies that operate in U.S. domestic commerce play by the same set of rules. Allowing foreign companies to operate in the U.S. outside of our immigration, employment, safety, environmental, tax, labor, and others laws would be unfair. American laws are often stricter than the laws that govern shipping and shipbuilding in international trades. No other industry operates exclusively in American domestic commerce yet outside of our laws (e.g., paying third world wages to its employees). No country in the world would – or does – permit businesses to operate domestically without complying with its national and local laws. Companies that do business here must fully obey American laws, regulations and other rules.

CONCLUSION: IT’S ABOUT SECURITY

You don’t need to be an expert in the maritime industry to know that repeal or modification of the key domestic maritime laws would make America less secure economically and militarily. Repeal of those laws would provide little benefit while making America more vulnerable.

Save American Maritime Jobs

Labor Day is a good time to think about our maritime industry; the need to preserve and protect its future is important to everyone, not just those of us who work in the industry. 

The American Maritime Partnership has given me permission to reprint some of their excellent articles.

Overview of the Domestic Maritime Industry

With more than 40,000 vessels engaged in domestic waterborne commerce, it is clear that this commercial armada is as diverse as the nation it serves. These vessels represent an investment of nearly $30 billion.

Here are some more facts and figures that illustrate the size and scope of the domestic maritime industry:

  • A billion-plus tons of cargo annually, with a market value of $400 billion.
  • 100 million passengers annually ride ferries and excursion boats.
  • 74,000 jobs on vessels and at shipyards.
  • 500,000 jobs in total.
  • $100 billion in annual economic output.
  • $29 billion in annual wages spent in virtually every community in the United States.
  • $11 billion in taxes per annum.
  • $46 billion added to the value of U.S. economic output each year.

Major Cargos:

  • Grain, coal, and other dry-bulk cargos and crude and petroleum via inland rivers.
  • Iron ore, limestone and coal across the Great Lakes.
  • Refined petroleum products along the East and Gulf coasts.
  • Supplies for Gulf offshore operations.
  • Merchandise and construction materials to and from Alaska, Hawaii, Puerto Rico, and Guam.

The domestic trades serve 41 states and 90 percent of the population.

America’s domestic trades have been the birthplace of innovations that transformed waterborne commerce worldwide:

  • Containerships
  • Self-unloading vessels
  • Articulated tug-barges
  • Trailer barges
  • Chemical parcel tankers
  • Railroad-on-barge carfloats
  • River flotilla towing systems

Click here to see a gallery of photos of vessels in the domestic trades.

Safety is another benefit that flows from U.S. laws regulating domestic waterborne commerce. U.S.-flag vessels are built and operated to the world’s highest safety standards. And no other nation sets a higher standard for mariner credential

Why We Need the Jones Act

America is More Secure because of its Strong Domestic Maritime Industry

Under U.S. domestic maritime laws, commonly known as the Jones Act, cargo shipped between two U.S. ports must move on American vessels. These laws are critical for American economic, national, and homeland security, which is why they have enjoyed the support of the U.S. Navy, Members of Congress of both parties, and every President in modern history.

The Domestic Maritime Industry Is Key to America’s Economic Strength and Security.

From the earliest days of our nation, shipping has been the grease for America’s economic engine. Today, the maritime industry is by far the most economical form of domestic transportation, moving more than 1 billion tons of cargo annually at a fraction of the cost of other modes. Remarkably, the domestic maritime industry transports about one-quarter of America’s domestic cargo for just 2% of the national freight bill. Fundamental U.S. industries depend on the efficiencies and economies of domestic maritime transportation to move raw materials and other critical commodities.

America’s domestic shipping industry is responsible for nearly 500,000 jobs and more than $100 billion in annual economic output, according to a recent study by PricewaterhouseCoopers for the Transportation Institute. Labor compensation associated with the domestic fleet exceeds $29 billion annually with those wages spent in virtually every corner of the United States. The American domestic fleet, with more than 40,000 vessels, is the envy of the world. Every job in a domestic shipyard results in four additional jobs elsewhere in the U.S. economy.

A small number of individuals and organizations support repeal of the Jones Act, which would allow foreign-built, foreign-operated, foreign-manned, and foreign-owned vessels to operate on American waters. The result would be to take a core American industry like shipbuilding and transfer it overseas to nations like China and South Korea, which heavily subsidize their shipyards and play by their own set of rules. Additional losses would occur from the outsourcing of American shipping jobs to foreign nations. Particularly at a time of severe economic dislocation in the U.S., it makes little if any sense to send American jobs overseas and undermine an essential American industry.

The U.S. Navy Says the Jones Act Is Critical to National Security.

The U.S. Navy’s position is clear – repeal of the Jones Act would “hamper [America’s] ability to meet strategic sealift requirements and Navy shipbuilding.” Over the past several decades the Navy has consistently opposed efforts to repeal or modify key U.S. maritime laws.

America’s domestic fleet is an important part of the national maritime infrastructure that helps ensure there will be ample U.S. sealift capacity to defend our nation. American ships, crews to man them, ship construction and repair yards, intermodal equipment, terminals, cargo tracking systems, and other infrastructure can be made available to the U.S. military at a moment’s notice in times of war, national emergency, or even in peacetime. In addition, during a major mobilization, American domestic vessels move defense cargoes to coastal ports for overseas shipments.

During Operations Enduring Freedom and Iraqi Freedom (2002 – 2010), U.S.-flag commercial vessels, including ships drawn from the domestic trades, transported 90% of all military cargoes moved to Afghanistan and Iraq.

The Defense Department (“DoD”) has consistently emphasized the military importance of maintaining a strong domestic shipbuilding industry, stating “[W]e believe that the ability of the nation to build and maintain a U.S. flagged fleet is in the national interest, [and] we also believe it is in the interest of the DoD for U.S. shipbuilders to maintain a construction capability for commercial vessels.” A study by the U.S. Department of Commerce, Bureau of Export Administration, reached a similar conclusion:

The U.S. shipbuilding and repair industry is a strategic asset analogous to the aerospace, computer, and electronic industries. Frontline warships and support vessels are vital for maintaining America’s national security and for protecting interests abroad. In emergency situations, America’s cargo carrying capacity is indispensable for moving troops and supplies to areas of conflict overseas. A domestic capability to produce and repair warships, support vessels, and commercial vessels is not only a strategic asset but also fundamental to national security.

America’s Domestic Maritime Industry Makes Our Homeland More Secure.

As America works to secure its borders, it must also secure its waterways. Homeland security is enhanced by the requirement for American vessels that operate in full accordance with U.S. laws and with the consistent oversight of the U.S. government. In that respect, the Jones Act is as effective a homeland security measure as any federal agency could ever write and enforce.

Today, it takes a small army of Customs agents, Immigration Services officials, homeland security staff, and others to regulate foreign ships that enter and exit the U.S. in international trade, even within the carefully controlled structure of U.S. ports. However, there is no precedent for allowing foreign-controlled ships operated by foreign crews to move freely throughout the tens of thousands of miles of America’s navigational “bloodstream.” Inland lakes, rivers and waterways go to virtually every corner of the nation.

There is considerable uncertainty about what laws would apply to a foreign shipping company operating in U.S. domestic commerce if the Jones Act were repealed. However, it is certain that the task of monitoring, regulating, and overseeing potentially tens of thousands of foreign-controlled, foreign-crewed vessels in internal U.S. commerce would be difficult at best and fruitless at worst. Repeal or modification of the key domestic maritime laws would make America more vulnerable and less secure.

U.S. Maritime Laws Ensure a Level Playing Field for American Businesses.

American domestic maritime laws ensure a level playing field by requiring that all shipping and shipbuilding companies that operate in U.S. domestic commerce play by the same set of rules. Allowing foreign companies to operate in the U.S. outside of our immigration, employment, safety, environmental, tax, labor, and others laws would be unfair. American laws are often stricter than the laws that govern shipping and shipbuilding in international trades. No other industry operates exclusively in American domestic commerce yet outside of our laws (e.g., paying third world wages to its employees). No country in the world would – or does – permit businesses to operate domestically without complying with its national and local laws. Companies that do business here must fully obey American laws, regulations and other rules.

Conclusion: It’s About Security

You don’t need to be an expert in the maritime industry to know that repeal or modification of the key domestic maritime laws would make America less secure economically and militarily. Repeal of those laws would provide little benefit while making America more vulnerable.