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The MTD Executive Board heard from officials of three U.S.-flag companies dedicated since Hurricane Maria decimated Puerto Rico to providing relief and rebuilding the island.
Addressing the board during its annual meeting near Orlando were National Shipping of America President Torey Presti; TOTE Maritime Puerto Rico President Tim Nolan; and Crowley Maritime Senior Vice President and General Manager, Puerto Rico Services John Hourihan. Presti and Nolan spoke on March 8, while Hourihan delivered his remarks March 9.
Consistent with the meeting’s theme, all of the speakers talked about how Jones Act carriers have led the way in helping Puerto Rico recover from Maria, which devastated the territory last September.
Presti credited maritime labor for its united support of America’s freight cabotage law, which he noted “promotes and protects the American Merchant Marine, and furthermore the law defines seamen’s rights.”
He said his company worked with the Seafarers Union, the Steelworkers and the AFL-CIO to gather and ship relief cargoes to Puerto Rico, many of which were donated by union members. That operation along with the larger response “was tremendous, and it couldn’t have happened without the Jones Act carriers,” Presti said.
Citing unfair media criticism of the Jones Act’s effects on Puerto Rico, he continued, “The pundits that supposedly know about the Jones Act really were off base. The problem was that once the cargo got to Puerto Rico, we had a heck of a time getting it off…. We couldn’t get [containers] out of the gate (due to damaged infrastructure). The problem wasn’t getting the cargo to Puerto Rico; that was done very efficiently.”
Presti also suggested taking an expanded view of the law, which supports around 500,000 American jobs and which has consistently been described by military leaders and politicians as vital to national, economic and homeland security.
“We need to look at the Jones Act as a utility,” he explained. “The islands depend on it – not only Puerto Rico, but Hawaii, Alaska and Guam as well.”
He said the Jones Act “has encouraged huge investments” benefiting Puerto Rico, including new LNG-powered vessels, port facilities and more, and asserted that ocean transportation costs do not harm the island’s economy.
“Here again, the uninformed pundits don’t understand,” he said. “If you price [cargo] dollar for dollar, best value, Jones Act carriers (win). I think that can stand up to anything.”
Nolan said that in all of his 25 years in the maritime industry, the period after the hurricane made him most proud.
“That time really exemplified what the maritime industry is all about,” he stated. “It wasn’t about TOTE, it wasn’t about other competitors. It was about all of us as one maritime industry. We as the American maritime industry were the first industry to stand up after the hurricane. We were worried about the island and what we could do to get the island back up on its feet.”
He reminded the board and guests that when Maria hit on Sept. 20, it was the tenth-most powerful hurricane ever to hit in the Atlantic. And, it struck just a week after Hurricane Irma already had left 80,000 Puerto Rico residents without power.
Nolan then described a crushing but motivating moment that happened shortly after he arrived in Puerto Rico, soon after Maria. A doctor told him that her hospital had lost all the babies in the neonatal intensive care unit.
“That’s when it really hit home to me, what the impact of this hurricane meant to Puerto Rico,” Nolan stated. “We can say they were without power. We can say they were without water and cell coverage. But when it came down to those babies, it truly put it into perspective what this hurricane meant to the island.”
He credited SIU Port Agent Amancio Crespo for working exhaustively with the company to help as many people as possible and added, “We worked hand in hand on a daily basis. It took a collective effort by all of us to get through this, and to stand back up the industry at one time.”
Companies stayed in touch and worked together without regard for competition, Nolan pointed out.
“This comes back again to, it wasn’t one organization. It was one collective American maritime industry that stood up first and got the island back on its feet first,” he said, adding that when the first terminal opened three days after the hurricane, TOTE had 11 Jones Act vessels ready to dock, carrying thousands of containers.
He commended the steward departments from the Isla Bella and the Perla del Caribe. When in port, they fed an additional 50 shore-side staff along with the crew. The ships also were used for lodging.
Nolan mentioned that TOTE has helped feed more than 20,000 families through working with charitable organizations, and also has sent 19 containers as part of Operation Agua, with 11 more scheduled. (Operation Agua provides water filters free-of-charge to residents, schools and organizations throughout the island. The American Federation of Teachers originated the program with others unions – like the MTD-affiliated SIU and AFSCME – as sponsors.)
“This was essential and again, who was it that stood up? The American maritime industry. We’re proud to be able to support this great cause,” he said. (For more information about Operation Agua, visit aft.org or operationagua.com.)
Turning to the attacks against the Jones Act, he said, “During a challenge, you have opportunists out there who try to take advantage of it, and the hurricane was no different. Folks came out and tried poking at the Jones Act. There was a 10-day waiver that was issued … more politically driven than anything else. There were 14 (foreign) ships that requested to call. One had relief cargo. If you step back and reflect, this validates the importance of the American maritime industry. In this 10-day window, folks outside the American maritime industry did not step up. We were the ones that delivered close to 100,000 containers. We’re the ones that flowed the goods down to the island…. It’s not that we’re here just today. We’re here for the long term.”
Hourihan noted that Crowley is headquartered in Jacksonville, Florida. The state itself has 52,000 jobs directly related to the Jones Act, he said, adding that more than half of the cargo that goes through Jacksonville is bound for Puerto Rico. The territory gets 85 percent of its cargo from there.
In his 30-plus years in the industry, “one thing I’ve come to believe is that defending the Jones Act will never stop,” Hourihan said. “There will always be those that are against it, and so it’s just part of our everyday work. It’s not a mountain we’re going to climb and be done.”
Focusing on Puerto Rico, he noted tax changes that began in 2006 and which phased out incentives for production on the island. This led to a recession which became a depression. Even though it had nothing to do with maritime laws, “that adds ammunition where there are challenges on the island,” he said. “It can be easy to point fingers as to, somebody’s got to be responsible for this. And oftentimes it’s the Jones Act carriers that (unfairly) get that hit.”
He used an example of the cost of a can of soup in Puerto Rico. Only two percent of the cost is attributable to transportation.
Ongoing education is critical, Hourihan said, both with the general public and with politicians and military leaders.
He then described the company’s response to Maria, from pre-storm preparations to having ships arrive less than two hours after the first port reopened.
Crowley’s Puerto Rico-based employees worked hard despite storm-related challenges at home, he said. Additionally, mainland-based employees put together more than 1,000 care packages for their counterparts in the territory.
He reiterated the fact that Jones Act carriers brought more than enough relief supplies to the ports, but cargo stacked up because of problems with roads and other infrastructure.
Before that was understood, however, the waiver was issued. “It really didn’t accomplish much of anything,” Hourihan said. “Crowley as a company, and I believe I speak on behalf of the American Maritime Partnership also – we are not opposed to waivers if there’s a need that can’t be met by a Jones Act company.”
He pointed out that between Crowley and TOTE, they have invested more than $1 billion in Puerto Rico.
Moreover, he said the Deepwater Horizon disaster in 2010 (another time when the Jones Act was unfairly blamed for hindering cleanup efforts) created “a wakeup call and a refresh.” Puerto Rico is “yet another wakeup call” to promote the facts about the Jones Act.
“The events in Puerto Rico pointed out that we can be going along fine, and we can have support,” he concluded. “But when you have events like what happened with Maria, all bets can be off. We’ve got to be able to close that gap.”
MTD Executive Board Members and guests heard news on global cabotage on March 9 during the annual board meeting that surprised almost everyone attending.
Seafarers’ Rights International (SRI) Executive Director Deirdre Fitzpatrick shared results of a long-term study conducted by her organization. Among the findings are that at least 91 countries maintain some form of maritime cabotage law. The SRI also found that such laws promote shipboard and environmental safety, national security, and good jobs.
“The Jones Act is often referred to as a model cabotage law: protecting jobs, the workforce, and the country,” Fitzpatrick stated. “But to protect the Jones Act, and to protect other cabotage laws around the world, it can only be helpful to know which countries have cabotage protections so that, in fact, the situation might be that the protection of cabotage laws is the norm, and it’s not the exception.”
She continued, “Looking at the international scene, I don’t think it will be any surprise to you to know that there are many countries around the world who are fighting to defend their cabotage laws. They’re fighting against the politicians, the press and the free trade advocates who appear in various guises.”
She then referred to some of those fights, including the long-fought battle for Canadian cabotage spearheaded by SIU of Canada President (and MTD Eastern Area Executive Board Member) Jim Given, as well as the ongoing struggles for domestic maritime rights in Australia, Southeast Asia and Europe.
To combat these attempts to dismantle cabotage, she added, the London-based International Transport Workers’ Federation (ITF) (which founded the SRI) assembled a special task force.
“In response to these threats, the Seafarers’ Section of the ITF, led by (Seafarers Union Secretary-Treasurer) David Heindel, set up an ITF Cabotage Task Force which is chaired by Jim Given…. Dave and Jim, together, have put the protection, the preservation and the expansion of maritime cabotage at the front of the agenda of the ITF. The first meeting of the ITF Cabotage Task Force took place in October 2015, and was hosted by the MTD in Washington, and the meeting was addressed by (MTD) President Michael Sacco.”
That task force, she explained, charged the SRI to conduct a new, more comprehensive survey on worldwide maritime cabotage laws, which surveyed a larger number of countries than the previous study on cabotage conducted by the US Maritime Administration (MarAd) in 1991. The new study, which surveyed 136 different countries on their cabotage restrictions, found that two-thirds (67 percent) of those nations utilized some form of cabotage laws.
But determining what constitutes cabotage was far from easy, she said: “I think sometimes it’s easy to talk about cabotage as if it is a concept that, first, everyone understands – which is not always the case – and secondly that it’s understood the same across different countries.”
Fitzpatrick continued, explaining that there is no single definition of cabotage among foreign countries.
She summarized the SRI’s findings, saying, “The results of our survey are clear. The regulation of maritime cabotage is widespread. The regulation of maritime cabotage is very diverse. But there are at least 91 countries today which have restrictions in their maritime cabotage laws to protect their maritime cabotage trades. Just like MarAd’s research in 1991, our research today shows that the Jones Act does not stand alone.”
Fitzpatrick said there are also “many countries where these laws are under severe attack. The ITF Cabotage Task Force is continuing its work to assist unions, develop strategies and practices to defend their cabotage laws, and even to expand cabotage protections around the world.”
According to its website, “The SRI is a unique and independent center established (in 2010) to promote, implement, enforce and advance all seafarers’ and fishers’ rights and remedies, including human rights and the rights of other persons on board vessels, through research, education and training throughout the international maritime industry, and advocacy in international, regional and national forums, and to provide a database of materials for the benefit of the international community.”
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Members of the House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation heard testimony on January 17 reaffirming the vital work performed by the U.S. Merchant Marine from union, government and industry witnesses.
Those called to testify at the hearing entitled “The State of the U.S.-Flag Maritime Industry” spoke out for maintaining the Jones Act and the Maritime Security Program while renewing calls to strengthen the nation’s cargo preference laws.
Opening the hearing, Subcommittee Chairman Duncan Hunter (R-CA) stated, “In order for us to maintain the way of life as we know it as a nation that is secure and is able to project power, be it Navy power or commercial power, the Jones Act is intrinsic to that. It is the cornerstone of all of them…the absurdity to have Korean or Chinese or name-your-country made ships take away the entire American workforce of making ships and driving them and getting something from point A to point B in America…it’s absurd and I hope that we keep educating…so that people understand how [the Jones Act] is one of the cornerstones of our entire country’s national security apparatus.”
Following Hunter was Rep. John Garamendi (D-CA), the subcommittee’s ranking member, who added, “First and foremost, we cannot become complacent in our defense of the Jones Act and our efforts… to raise public awareness of the need for, and the many benefits that flow, from this long-standing maritime policy that has stood for nearly a century.”
Part of two different panels to appear before the subcommittee, both U.S. Maritime Administrator Mark H. Buzby and Marine Engineers’ Beneficial Association (MEBA) Secretary-Treasurer Bill Van Loo emphasized the need for more cargo to keep America’s merchant fleet afloat.
“Cargo is a main factor determining the number of ships in the U.S.-flagged fleet, and the number of ships then influences the number of mariners who are available to run those ships and maintain a strong, resilient U.S. Merchant Marine,” Buzby declared.
In his prepared remarks on behalf of MEBA, the American Maritime Officers, Masters Mates & Pilots, and the Seafarers Union, Van Loo pointed out, “It is very simple. Without cargo, our ships do not and our mariners do not stand by.”
Both Buzby and Van Loo (along with the other witnesses) reiterated their organizations’ support for the Jones Act, the nation’s freight cabotage law.
“Coastwise trade laws promote a strong and vibrant U.S. domestic maritime industry, which helps the United States maintain its expertise in shipbuilding and maritime transportation,” Buzby noted. “The Jones Act also ensures that vessels navigating on a daily basis among and between U.S. coastal ports and vulnerable inland waterways are operating with U.S. documentation and crew rather than under a foreign flag with foreign crew.
“Those [American] mariners are a de facto layer of our national security,” Buzby added.
“And the Jones Act makes that possible, period” Hunter interjected. “Yes, sir,” responded Buzby.
That same theme was provided during opening remarks by Rep. Garret Graves (R-LA), “[The Jones Act] isn’t just about employment and the economy, it’s about national security implications…It’s important that we do keep this on the front burner.”
During his testimony, U.S Coast Guard Rear Admiral John Nadeau stated, “Security is very important…and that would be a different paradigm should that not all be us, U.S. mariners, U.S. citizens on board those ships.” (Nadeau is the assistant commandant for prevention policy.)
Others appearing before the subcommittee included Eric Ebeling, president and CEO for American Roll-On Roll-Off Carrier; Matt Woodruff, chairman of American Maritime Partnership; Matthew Paxton, president of the Shipbuilders Council of America; and Aaron Smith, president and CEO of the Offshore Marine Service Association.