Posted: April 7, 2015

Key indicators point to sustained growth and security for AMO


By Paul Doell
National President


There was good news on several fronts for American Maritime Officers as this publication neared press time.

Our union closed the first quarter of the calendar year with an operating budget surplus resulting from three factors: increased membership dues receipts through direct payment and through authorized dues deductions from AMO Vacation Plan benefits; a substantial six-figure saving in salaries, benefits and expenses from payroll attrition as of January 1; and a responsible, continuing cost containment strategy adopted unanimously by the AMO National Executive Board - including top-tier administrative salary adjustments.

On the AMO Plans side of South Federal Highway in Dania Beach, the defined benefit AMO Pension Plan - frozen in December 2009 as a deficient "red zone" plan as defined in the federal Pension Protection Act of 2006 - recorded an investment return of 10.1 percent in fiscal year 2014 - the third consecutive year in which investment growth surpassed expectations. On October 1, 2014, the AMO Pension Plan - now in the Pension Protection Act's "yellow zone" - was funded at just over 70 percent, compared to 57.9 percent in fiscal 2011. Actuarial assumptions suggest that the AMO Pension Plan could be funded at 80 percent and in the Pension Protection Act's "green zone" within two years. The joint union-employer trustees of the AMO Pension Plan will continue to track this progress closely with the Plan's actuaries and money managers, especially under current conditions in fickle investment markets.

On the job front, additional ships are activating for service in key deep-sea trades, and Great Lakes vessel operators are fitting out their fleets for a shipping season delayed again by extreme winter weather and ice-clogged ports and channels. These developments mean more work for AMO members and renewed employer contributions to the AMO benefit funds serving all AMO members and their families.

As always, legislative legwork and regulatory advocacy in Washington are critical not only to AMO, but to all maritime labor and industry interests in all international and domestic shipping markets. The Maritime Security Program, U.S.-flag cargo preference applied to international food aid and to U.S. Export-Import Bank shipments, and the Jones Act are the current front lines.

On April 1, AMO hired John Rothrock - a highly qualified and motivated legislative and procedural authority who knows our issues intricately - to serve as our union's legislative director and to work with Mike Murphy and Christian Spain on regulatory matters arising within the Maritime Administration in the Department of Transportation, the U.S. Coast Guard, Military Sealift Command and other federal agencies. We will introduce John to you officially in our next issue.

Meanwhile, American Maritime Officers is gearing up for substantial expansion of the Jones Act dry cargo and tanker fleets plying coastal waters - fleet growth that will benefit AMO exclusively in terms of new jobs and new employer contributions to AMO Plans.

On April 1, AMO was awaiting imminent delivery of the first ship providing this new work - the combination container/roll-on, roll-off ship Marjorie C, built for Pasha Hawaii at VT Halter Marine in Pascagoula, Mississippi for service under AMO contract between the U.S. mainland West Coast and Hawaii.

Later this month, TOTE will launch and christen the first of two containerships ordered from General Dynamics NASSCO in San Diego for operation between Florida and Puerto Rico. This will be the first ship of its kind anywhere in the world to be powered by liquefied natural gas, and the second ship will be LNG fueled as well. AMO will be aboard both vessels in all licensed positions.

NASSCO is busy as well with the construction of five product tankers for American Petroleum Tankers and the construction of three tankers for SEA-Vista LLC. AMO members will fill all of the licensed jobs on all of these Jones Act vessels, with the first wave anticipated later this year.

Back in Pascagoula, VT Halter Marine is building two combination container/roll-on, roll-off ships for operation in Jones Act trade by Crowley Maritime's liner services division, and these ships will be staffed by AMO in all licensed positions.

All of this new work and other developing opportunities are made possible by AMO's sustained reputation for professional excellence at sea, no matter what the job. I know I speak for everyone on the AMO National Executive Board when I extend sincere thanks and appreciation to each and every U.S. merchant marine officer we are privileged to represent.

As always, I encourage your comments and questions - feel free to call me on the headquarters office line at 954-921-2221 or on my personal cell at 954-881-5651.