Posted: May 14, 2014

Support for Jones Act emphasized during second National Maritime Strategy Symposium


Strong support for the Jones Act and its role as the foundation of the U.S. domestic maritime industry was voiced by representatives of industry, labor and government as stakeholders from all facets of the American maritime industry gathered May 6 at the Department of Transportation in Washington, D.C. to provide input on the national maritime strategy being crafted by the U.S. Maritime Administration.

The second National Maritime Strategy Symposium focused on domestic shipping, shipbuilding, ports and waterways, although individual speakers and discussion panels also broadened the conversation to touch upon important policies and programs affecting U.S.-flag shipping in international trades and in defense sealift capacities - including U.S. cargo preference laws, U.S. food-aid cargoes, the Maritime Security Program, and the potential for use of U.S.-built and -crewed vessels for the export of domestically produced liquefied natural gas (LNG).

The indispensable role of the Jones Act in sustaining the domestic maritime industry was a central theme in discussions and presentations during the symposium, and the need for greater support of MARAD's Title XI shipbuilding loan guarantee program was repeatedly recommended for inclusion in the national maritime strategy.

Secretary of Transportation Anthony Foxx emphasized the importance of developing a national strategy to ensure the maritime sector holds a significant position as transportation infrastructure throughout the U.S. is developed, improved and refurbished. In his remarks, Foxx directly addressed his position on the Jones Act.

"You can ... rest assured of this department's fierce, fierce support of the Jones Act," Foxx said. "We know how important it is."

In addition to Foxx, speakers at the symposium included Acting Maritime Administrator Paul "Chip" Jaenichen, and the Co-Chairmen of the Congressional Shipbuilding Caucus, Congressmen Rob Wittman (R-VA) and Joe Courtney (D-CT).

Citing a study projecting an increase of 14 billion tons of freight that will need to be moved throughout the U.S. by 2050 to support a population expected to grow by 100 million people, Jaenichen said the maritime industry is strong today, but there are significant challenges we are facing.

The potential to move more cargo with the domestic maritime transportation system provides solid opportunities, he said, pointing to the boom in domestic shipbuilding as a sign of strength for the American maritime industry, "including over 20 large self-propelled oceangoing Jones Act eligible tankers and containerships currently being built or on order at U.S. shipyards."

However, he also emphasized the cyclical nature of the industry and said solutions to generate consistent and sustained demand for U.S. waterborne shipping and shipbuilding need to be developed.

"Opportunity is knocking and now is the time to answer the door," Jaenichen said.