On September 15, the House Subcommittee on
Coast Guard and Maritime Transportation held a hearing to review the U.S.
Merchant Marine status, including issues that affect the domestic maritime industry,
as well as the role the industry plays in the United States’ economy and
national security.
As part of the hearing, witnesses and labor
representatives testified before Subcommittee Chairman, Duncan Hunter (R-CA)
and Ranking Member Rep., John Garamendi (D-CA). Mark Tabbutt, Chairman of the Board of Saltchuk, testified on the
American Maritime Partnership’s behalf. Tabbutt told the Subcommittee that the maritime industry, as supported
by the Jones Act, is strong and growing.
Said Tabbutt, “Our industry is experiencing an
extraordinary renaissance and its contributions to America’s economic, national
and homeland security have never been more important. The largest sector of our domestic marine
transportation industry supports our energy infrastructure with the movement of
crude, refined petroleum products, and chemicals and has seen dramatic growth
as a result of the shale oil revolution. This is driving record levels of new
vessel construction orders and deliveries in American shipyards.”
Similarly, Matthew Paxton, President of the
Shipbuilders Council of America (SCA), testified that American commercial
shipbuilding is strong and vibrant, and that the shipyards have experienced
dramatic growth due to shale oil production and new vessel orders and
deliveries.
Paxton stated, “The state of the U.S.
commercial shipyard industry is the strongest it has been in decades. Our industry, which includes thousands of
businesses supporting vessel construction, is a vibrant manufacturing sector
employing hundreds of thousands of Americans in all 50 states. Commercial
markets are witnessing a boom not seen in decades, representing billions of
dollars in new investments to our economy. This is all while American shipyards
continue to deliver the largest and most sophisticated Navy and Coast Guard in
the world.”
Giving testimony on the current state of the
U.S. Merchant Marine was Niels M. Johnsen, Chairman and CEO of International
Shipholding Corporation. He talked about
what the “precarious state” of the Merchant Marine could mean for the United
States’ national security, and he urged the immediate development and
establishment of a National Maritime Strategy complete with a fully-funded
Maritime Security Program.
According to Johnsen, “Our industry is in the
midst of a ‘perfect storm’ – dwindling United States Military cargoes, a
precipitous drop in food aid cargoes, escalating costs and regulations from the
USCG and other Federal agencies, and intense low-cost foreign competition. Any such National Maritime Strategy must
preserve and enhance the Maritime Security Program; reinforce and expand
existing United States flag cargo preference requirements, while ensuring
strict compliance with those requirements by all Federal agencies and
Departments; and include immediate efforts to expand trading opportunities for
United States flag vessels with the key trading partners of the United States.
USA Maritime is fully prepared to work with this Subcommittee on these
initiatives.”
Currently, the United States maritime industry
employs over a quarter of a million Americans, providing almost $30 billion in
annual wages. There are over 40,000
commercial U.S.-flagged vessels, the majority of which engage in domestic
commerce, moving over $400 billion worth of goods and 100 million passengers
annually. The maritime industry in the
U.S. accounts for over $100 billion in economic output per year.
To read full testimonies from the hearing, see
below for links.
Full Testimonies:
Mr. Mark Tabbutt,
Chairman, Saltchuk Resources | Written Testimony
Mr. Niels Johnsen,
Chairman/CEO, International Shipholding Corporation | Written Testimony
Mr. Don Marcus,
President, Masters, Mates and Pilots | Written Testimony
Mr. Matthew Paxton,
President, Shipbuilders Council of America | Written Testimony