MARAD remains aggressive on job, policy initiatives for maritime industry

MARAD remains aggressive on job, policy initiatives for maritime industry

The Maritime Administration will remain "aggressive" in pursuit of new opportunities for U.S.-flagged merchant vessel operators and U.S. merchant mariners in domestic and international markets, Maritime Administrator Sean Connaughton vowed recently.

Addressing the Maritime Trades Department of the American Federation of Labor-Congress of Industrial Organizations in San Diego, Connaughton said the greatest promise rests in emerging short sea trades between U.S. points and in the import of liquefied natural gas.

Congress last year approved MARAD's "marine highway" initiative, which would encourage the use of small-to-mid-sized cargo vessels between U.S. ports along the East, West and Gulf Coasts and the Great Lakes. Connaughton said such short sea services would ease chronic congestion on interstate highways, reduce fuel exhaust emissions by reducing truck traffic and accommodate projected demand for U.S. port-to-port transshipment of surging imports.

These short sea services would be governed by the Jones Act, the 1920 law that reserves all domestic deep-sea, Great Lakes and inland water commerce for merchant vessels owned, built, flagged and manned in the United States.

The 2007 legislation acknowledges waterways "as part of our national service transportation system" for the first time, Connaughton said. "That opens up an enormous amount of possibilities for us," he added. "We are actually out there working with operators, with unions, obviously with state and local governments to actually make some of these projects a reality - we're very close to several new operations, and I think that we're going to be able to make this all happen."

Discussing U.S. prospects in LNG trades, Connaughton said MARAD was securing "commitments" from LNG interests to use U.S. merchant marine officers and crews on LNG tankers and service vessels.

Connaughton said MARAD's LNG efforts were "beginning to bear some fruit." Energy interests and vessel operators are offering to use U.S. merchant marine officers and crew members voluntarily, and some companies have agreed to build or acquire LNG tankers and support ships for U.S. manning under U.S. registry.

Connaughton also discussed the Jones Act, the cargo preference laws that set specific share of government-financed imports and exports aside for U.S.-flagged vessels, and the Maritime Security Program.

The Jones Act remains "critical for our national security and critical to our economy," he said.

But, despite its merit, the Jones Act is often targeted for amendment or repeal - threats MARAD takes "very seriously," Connaughton added. "We are going to do everything we can to ensure that the law is enforced."

Cargo preference is also subject to challenge in principle and in practice, Connaughton continued. He said attempts to "undermine" cargo preference are too often traced to other Executive Branch agencies.

"We are the agency that is primarily charged with making sure the cargo preference (requirements) are met," Connaughton said. "This does not necessarily make me very popular with other members of the federal government."

He added: "We are very, very aggressive at making sure that every federal cargo that is subject to the cargo preference laws is carried on vessels that are American flagged and crewed.

The Maritime Security Program "has played an important role in enhancing U.S. (defense) sealift and preserving a viable manpower pool of skilled civilian mariners," Connaughton noted. The MSP helps sustain 60 U.S.-flagged merchant ships in commercial service in international trade. The ships and their manpower complements are available to the Department of Defense as needed for strategic sealift and other military support services.

Though authorized through 2015, the MSP must be funded each year through direct budget appropriation.

"We at the Maritime Administration, through some creative financing and accounting, were able to make sure that every carrier got the authorized levels for the Maritime Security program," Connaughton said. "This is obviously vital to our national security and obviously a vital source of jobs."

Thomas Barrett, deputy secretary in the Department of Transportation (which includes MARAD) also spoke to the seagoing unions. He reinforced Connaughton's points on securing new business for U.S.-flagged vessel operators and new jobs for licensed and unlicensed U.S. merchant mariners.

"MARAD is working very hard to look for ways to provide jobs for American workers to help transport LNG around the world," Barrett said. "What that comes back to is the skill set, the character and the value that American workers have."

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