The Metal Trades Department, AFL-CIO strongly supports the Energizing American Shipbuilding Act. We urge Congress to move forward on Congressman John Garamendi’s legislation.
View Rep. Garamendi’s whitepaper on “The Energizing American Shipbuilding Act: A Plan to Create Good Middle Class Jobs, Maintain Critical National Security Assets, Enhance Public Safety, and Strengthen the American Shipbuilding Industry” to learn more.
From the Whitepaper: The U.S. Merchant Marine and shipbuilding industries are strategic national assets critical to national security, with the Department of Defense relying on our U.S.-flag fleet and its pool of trained and credentialed mariners for over 95 percent of national sealift needs in times of war or emergency. Yet this fleet is in a state of precipitous decline: the number of privately-owned U.S.-flag vessels engaged in foreign trade has dropped from 249 in the 1980s to just 78 as of October 1, 2016.
This signals not only the erosion of our sealift capabilities, but also the outsourcing of security and control over the supply chain that underpins our entire economy. The world relies on maritime transportation to move ninety percent of its global trade, but very little of that travels on U.S.-flag ships. Of the 1.4 billion tons of goods that are imported and exported through U.S. ports each year, 98 percent travel on foreign-flag vessels operated by foreign mariners.
The erosion of our ability to build and operate ocean-going vessels at competitive rates is also a threat to our industrial base. Good manufacturing jobs in shipyards and shipbuilding supplier companies have been outsourced oversees at alarming rates, and with them the invaluable technical skill and shipyard infrastructure that once kept costs down for both commercial and naval shipbuilding.
Inertia and bad public policy precipitated this decline, but Congress can turn the ship around by passing the Energizing American Shipbuilding Act.
Contact Congress and tell them to move on the Energizing American Shipbuilding Act
Contact Congress today and tell them to move on H.R. 1240, the Energizing American Maritime Act. Unless Congress takes action, ALL exported American crude oil and LNG traveling by ship will go on foreign-built and foreign-flag vessels operated by foreign crews, outsourcing ALL of the associated jobs and technical skills to foreign competitors. This bill would expand our U.S.-flag fleet, create over 2,000 new mariner jobs, and create thousands of additional jobs in shipyards and throughout the shipbuilding supply chain. I hope we can count on your support.
The Act Will Support Good Middle Class Jobs
Tens of thousands of American mariner and manufacturing jobs aboard vessels, in shipyards, and throughout the U.S. supply chain depend on the strength of the maritime industry. There are currently 117 active shipyards in the U.S. spread across 26 states, and another 200 shipyards engaged in repairs or capable of building ships. In 2011, the U.S. private shipbuilding and repair industry directly provided 107,240 jobs, $7.9 billion in labor income, and $9.8 billion in gross domestic product to the national economy. Including direct, indirect, and induced impacts, on a nationwide basis, total economic activity associated with the industry reached 402,010 jobs across all 50 states, $23.9 billion of labor income, and $36 billion in GDP in 2011. Each job in the private shipbuilding and repair industry supports another 2.7 jobs nationally, including increased revenue for small – businesses serving maritime workers and their families. Each dollar of labor income in the shipyard sector leads to another $2.03 in labor income in other parts of the economy.
The Energizing American Shipbuilding Act would:
- Immediately launch an LNG shipbuilding program in the U.S., ramping up over time so that by 2040, 15% of exported American LNG travels on U.S.-built and –flagged vessels;
- Immediately launch a crude oil shipbuilding program in the U.S., ramping up over time so that by 2032, 10% of exported crude oil travels on U.S.-built and –flagged vessels;
- Require that a significant portion of the iron, steel, and manufactured components be U.S.-sourced and U.S.-constructed, good U.S. manufacturing jobs in addition to mariner jobs;
- Require that exporters immediately create training opportunities for American mariners aboard export vessels so they can earn the credentialing required to assume these jobs.
The Jones Act is the fundamental law of the American maritime industry. This new national grassroots group was established to mobilize Jones Act supporters across the country to contact Members of Congress and others against attacks on this important law. Please consider sending a message to your representatives saying that you support the Jones Act.
March 24, 2016
The debate of enhancing U.S. border security has focused almost exclusively on illegal movement of people and drugs into the southern United States from Mexico. Yet, the southern border is actually the smallest at 1,989 miles. The U.S. border with Canada is almost three times longer at 5,525 miles.
All of this country’s land borders are dwarfed by the 95,000 miles of national shoreline. This includes the Pacific, Atlantic and Gulf coasts as well as the Great Lakes separating the United States from Canada. Along this shoreline are many of America’s greatest cities: Los Angeles, San Francisco, Portland, Seattle, Chicago, Boston, New York, Philadelphia, Charleston, Savannah, Miami and Tampa. Virtually all of these are associated with ports through which pass millions of cargo containers and hundreds of thousands of passengers.
Moreover, the United States is a nation of rivers. A ship entering the homeland through a coastal port such as New Orleans will have access to the deep interior. The inland waterways of the United States encompass over 25,000 miles of navigable waters, including the Intracoastal Waterway, a 3,000-mile waterway along the Atlantic and Gulf Coasts. This liquid highway touches most of America’s major eastern cities including Washington DC, Philadelphia, Baltimore, Chicago, New Orleans and Mobile. Inland and intracoastal waterways directly serve 38 states from the nation’s heartland to the Atlantic seaboard, Gulf Coast and Pacific Northwest.
A significant portion of the movement of ships in U.S. waters is governed by the Merchant Marine Act of 1920, also known as the Jones Act. Only vessels conforming to the provisions of the Jones Act are permitted to carry passengers or cargo between two U.S. ports, a process also termed “cabotage.” These vessels must be built in the United States, owned by U.S. citizens, and operated under the laws of the United States. In addition, all officers and 75 percent of the crews of vessels engaged in cabotage must be U.S. citizens, with the remainder being citizens or lawfully admitted aliens.
The Jones Act was meant to pursue a number of national objectives. The most obvious was to support a robust U.S. shipbuilding industry and merchant marine. In addition, Jones Act ships provided an important logistics support capability for the U.S. Navy.
A less well-appreciated but ever more important service provided by the Jones Act is in the area of homeland security. Since 2011, the Departments of Defense and Homeland Security along with domestic law enforcement agencies at both the state and federal levels are expending enormous amounts of manpower and resources to secure the nation’s ports and waterways. Foreign owned and operated ships routinely enter U.S. ports. But their movements and those of their crews are subject to a variety of controls and restrictions. For example, without valid passports, foreign sailors are restricted to their ships and the immediate port area.
It is particularly important that those vessels and crews which routinely travel between U.S. ports and especially the inland waterways through America’s heartland pose no threat to the homeland. It is for this reason that the higher standards with respect to ownership and manning requirements for Jones Act ships are so significant.
The task of securing U.S. seaports and foreign cargoes is daunting by itself. It makes no sense to add to the burden facing domestic security agencies by allowing foreign-owned ships operated by foreign crews to move freely throughout America’s inland lakes, rivers and waterways. The requirement that all the officers and fully 75 percent of the crews of vessels engaged in cabotage be U.S. citizens goes a long way to reducing the risk that terrorists could get onboard or execute an attack on a U.S. target. In effect, there is a system of self-policing that reduces the requirement for law enforcement and homeland security organizations to expend time and effort to ensure that these vessels and crews are safe to traverse U.S. waters. Were the Jones Act not in existence, the Department of Homeland Security would be confronted by the difficult and very costly requirement of monitoring, regulating and overseeing foreign-controlled, foreign crewed vessels in coastal and internal U.S. waters.
– See more at: http://lexingtoninstitute.org/venerable-jones-act-provides-important-barrier-terrorist-infiltration-homeland/#sthash.cRuiHA94.dpuf
1/15/15 12:17 PM EST
The commandant of the Coast Guard waded into the congressional fight over the Jones Act on Thursday, arguing that repealing it would jeopardize the U.S. fleet of trade vessels.
“That for me is a real consequence, if we have foreign flagged vessels doing coastalized trade, what are the safety standards, what are the maritime pollution … standards, how are they in compliance with the same standards that we apply to our U.S. fleet?” Adm. Paul Zukunft said at the Surface Navy Association’s National Symposium in Crystal City, Va.
“I think, at the end of the day, it will put our entire U.S. fleet in jeopardy, where our fleet of roughly 80-plus international U.S.-flagged vessels will rapidly go to zero,” he said. “And then in a time of crisis, who are we going to charter to carry out our logistics? … Very difficult if we don’t have a U.S. flagged ship.”
Sen. John McCain (R-Ariz.) is seeking to attach an amendment to the Senate’s Keystone XL pipeline legislation that would repeal the Merchant Marine Act of 1920, known as the Jones Act, which requires that goods shipped between U.S. ports be carried by vessels built in the country and owned and operated by Americans.
The new Senate Armed Services chairman argued the policy is “antiquated,” and raises costs for U.S. consumers by placing unnecessary restrictions on trade vessels.
Zukunft didn’t hesitate to list what he viewed as negative consequences of repealing the policy, but he said he didn’t want to get in the middle of the congressional fight.
“We deal with the consequences of how these policies play out, and I’ve found it very prudent to just deal with the consequence and not find myself the salami between those two slices of bread on these policy decisions,” he said.
There are a number of stakeholders in the Jones Act battle, but first and foremost is the U.S. shipbuilding industry, Zukunft said.
Shipbuilding advocates are fighting back against McCain’s push, including the Navy League, which argued that repealing the Jones Act would lead to a reduction in the number of ships built in U.S. shipyards. The Navy League also said repealing the law would lead to increased costs for Navy and Coast Guard vessels, which are built in the United States where the trade protections mean shipyards have lower overhead costs.
There are now about 15 tanker ships under construction that will be U.S. flagged ships, increasing the fleet size by more than 20 percent, he said. And much of that increase is due to demand for U.S. export ships, which would decrease if the Jones Act is repealed, he said.
By Dean Corgey
Updated 08:22 p.m., Tuesday, April 17, 2012
“For nearly 100 years, labor and management, industry and government, and Democrats and Republicans have respected the vision of Andrew Furuseth that seamen are entitled to basic rights – and among the most basic of rights is the right to a job. As Furuseth liked to say, “Freedom and equality is a flower that grows in strife and amongst danger.” We are certainly in strife and amongst danger, so maybe it’s time to let the flower we know as the Jones Act grow. That will be good for Texas and good for America!” [Dean Corgey]
A founding father of our union was a mariner, a Norwegian immigrant and labor activist named Andrew Furuseth. He lived in a time, much like today, of social, political and economic upheaval at the end of the Gilded Age of the robber barons and the dawn of the Progressive Era of great reformers such as President Theodore Roosevelt.
At the turn of the 20th century, seamen had few legal rights and suffered abuse unimaginable today, including inhumane conditions, forced labor, beatings and imprisonment. In 1915, Furuseth testified before Congress and spoke these immortal (in our industry) words: “You can put me in jail but you cannot give me narrower quarters than as a seaman I have always had. You cannot give me coarser food than I have always eaten. You cannot make me lonelier than I have always been.”
This powerful statement helped give birth to the American maritime labor movement and the eventual passage of the Seamen’s Act of 1915 and the Jones Act of 1920. Furuseth is credited as a driving force behind these bills, with the support of Sen. Wesley Jones, R-Wash., Robert M. La Follette, the great progressive Republican senator from Wisconsin, and President Woodrow Wilson. The Seamen’s Act established basic working and living conditions for merchant mariners, and the Jones Act implemented a workers’ compensation system for seamen similar to the railroads. More importantly, the Jones Act introduced cabotage provisions requiring for the first time that domestic cargo be carried on vessels that are owned, built and crewed by Americans. These laws changed forever American seagoing life and transformed our domestic maritime industry into an innovative, cost-effective and secure transportation system that bolsters our nation’s security.
Leaders from both sides of the aisle understood the importance of maintaining a fleet of vessels to provide good jobs and economic security in peacetime and a pool of qualified personnel to man those vessels and defend the homeland in a time of war. The Jones Act always has enjoyed broad bipartisan support in Congress, the White House and the military and has been instrumental in the massive sealifts of World War II, Korea, Vietnam, Grenada, Panama, Kuwait, Iraq and Afghanistan, as well as the humanitarian efforts in Haiti and Japan. In each instance, the U.S. Merchant Marine has never missed a sailing and has performed with distinction and professionalism in the face of sacrifice and peril.
Texas has a proud maritime history and many know that a major factor in the victory of World War II was Texas crude refined in Port Arthur, Houston and Corpus Christi and transported to the European and Pacific theaters on Jones Act tankers crewed by fearless American sailors. Many of these ships were torpedoed and the crews paid the ultimate price. We were able to win by maintaining a steady supply of fuel as the enemy ran out, thanks to the Jones Act.
Texas is America’s premier maritime state, with more tonnage moving through our ports than any other – much of it on Jones Act vessels. Our state has benefited from Jones Act-related investments by shipowners, and many thousands of Texans depend on Jones Act-related employment, both at sea and ashore. To his credit, Texas Gov. Rick Perry is an ardent supporter of the Jones Act, as was President George W. Bush.
On the national level, the Jones Act fleet consists of 40,000 vessels engaged in domestic waterborne commerce representing an investment of $30 billion. The industry moves a billion tons of cargo and 100 million passengers yearly, generating $100 billion in annual economic output. This has created 500,000 American jobs with a yearly payroll of $29 billion and $11 billion in taxes per annum. The Jones Act fleet provides reliable service to markets such as Alaska, Hawaii and Puerto Rico, which depend on waterborne commerce for their very existence.
Our domestic fleet is invaluable to our homeland security and border protection; our companies and crews are regulated by the U.S. Coast Guard and by federal law enforcement agencies. Our domestic maritime industry is clearly vital to our national, economic and homeland security.
Unfortunately, we have recently seen a disturbing trend of anti-Jones Act rhetoric based on false information, including calls for blanket waivers and outright repeal. It seemed to begin with the Deepwater Horizon disaster in 2010, continued with the Strategic Petroleum Reserve waivers in 2011 and the politicization of cabotage in Puerto Rico and the current efforts of the American Petroleum Institute to seek waivers to move fuel from the Gulf Coast to the Northeast. In each case, the facts do not bear out the claims of those who seek to destroy a law that has served this state and country well.
In this time of economic uncertainty, high unemployment and threats of terrorism, we should be talking about expanding, not chipping away at, the Jones Act. Real opportunities for growth are on the horizon for the domestic maritime industry. Refineries are closing in Pennsylvania, New Jersey, St. Croix and Aruba. Refining capacity is being concentrated in Texas and Louisiana, with Houston being the leader. Domestic crude and natural gas from shale operations and the eventual Keystone Pipeline will produce increased prospects for coastwise movements of refined products and LNG to the East Coast and Caribbean.
Serious consideration is being given to the creation of a “marine highway” network to distribute containers coming from an expanded Panama Canal in a safe, efficient and green manner to coastal destinations. This all equates to good jobs that are sorely needed by young folks graduating from maritime training facilities and veterans returning from Iraq and Afghanistan.
For nearly 100 years, labor and management, industry and government, and Democrats and Republicans have respected the vision of Andrew Furuseth that seamen are entitled to basic rights – and among the most basic of rights is the right to a job. As Furuseth liked to say, “Freedom and equality is a flower that grows in strife and amongst danger.” We are certainly in strife and amongst danger, so maybe it’s time to let the flower we know as the Jones Act grow. That will be good for Texas and good for America!
Corgey is vice president, Gulf Coast Region, of the Seafarers International Union.