Posted: September 17, 2014

Congressional leaders affirm importance of U.S. merchant marine, point to LNG transportation, National Maritime Strategy as ways to strengthen, expand U.S.-flag fleet


On September 10, the House Subcommittee on Coast Guard and Maritime Transportation, led by Chairman Duncan Hunter (R-CA) and Ranking Member John Garamendi (D-CA), conducted a hearing titled Status of the U.S. Merchant Marine.

The purpose of the hearing was to "review issues impacting the U.S. merchant marine, the important role it plays in our economy and national security, and ways we can work together to strengthen and expand the merchant marine," said Rep. Hunter in his opening remarks.

The hearing focused attention on H.R. 5270, the bipartisan Growing American Shipping Act, which would promote the export of liquefied natural gas (LNG) on U.S.-flagged vessels. The bill was introduced by Rep. Garamendi, and Rep. Hunter is an original cosponsor of the legislation.

"There are more than 40,000 commercial vessels currently flying the American flag," Rep. Hunter said. "The vast majority of these vessels are engaged in domestic commerce, moving over 100 million passengers and $400 billion worth of goods between ports in the U.S. on an annual basis. Each year, the U.S. maritime industry accounts for over $100 billion in economic output.

"Beyond the important contributions to our economy, a healthy merchant marine is vital to our national security," he said. "Throughout our history, our nation has relied on U.S.-flagged commercial vessels crewed by American merchant mariners to carry troops, weapons, and supplies to the battlefield. During Operations Enduring Freedom and Iraqi Freedom, U.S.-flagged commercial vessels transported 63 percent of all military cargos moved to Afghanistan and Iraq.

"Unfortunately, over the last 35 years, the number of U.S.-flagged vessels sailing in the international trade has dropped from 850 to less than 90. Less than two percent of the world's tonnage now moves on U.S.-flagged vessels. In the same period, we have lost over 300 shipyards and thousands of jobs for American mariners. For the sake of our national and economic security, we need to reverse this trend.

"We cannot rely on foreign vessels and crews to provide for our national security," Rep. Hunter said. "It is critical that we maintain a robust fleet of U.S.-flagged vessels to carry critical supplies to the battlefield, a large cadre of skilled American mariners to man those vessels, and a strong shipyard industrial base to ensure we have the capability to build and replenish our naval forces in times of war.

"I know the new maritime administrator is hard at work on a national maritime strategy that will hopefully include recommendations to strengthen the merchant marine," he said. "As soon as the strategy is complete, I look forward to calling him before the subcommittee to present it. In the meantime, representatives of the maritime industry and labor have been working on a similar proposal at the request of Ranking Member Garamendi and myself."

Witnesses at the hearing voiced support for the Growing American Shipping Act and efforts to increase the utilization of U.S.-flagged ships in international trade.

"The U.S. maritime industry has been knocked down by decades of neglect by policymakers, but it is getting back up and is poised to take off," Rep. Garamendi said. "We've beaten back attempts to weaken the Jones Act. For the first time ever, the Maritime Administration and stakeholders are crafting a National Maritime Strategy. Now, looming on the horizon is a terrific opportunity: when and where we export LNG, let's do so responsibly on American ships. The bipartisan GAS Act makes clear that we want LNG exports to be on U.S.-flagged ships and create American jobs. Today's hearing was a major step forward. I will continue to work with businesses, labor and my colleagues on both sides of the aisle to bring this bill up for a vote."