Posted: June 9, 2009

William Schubert corrects the record on U.S. merchant fleet


Former Maritime Administrator William Schubert recently corrected the distorted record on the U.S.-flag merchant fleet set forth by Richard K. Bank in an opinion article titled: "GM is Sunk. Just Ask the Merchant Marine."

In his opinion article, which was published in The Washington Post's Outlooks & Opinions section at the end of May, Bank claims: "Essentially, the U.S.-owned and -operated merchant marine liner fleet no longer exists. And in its demise lies a lesson for the U.S. auto industry."

Writing in response, Schubert pointed out: "Unfortunately his history lesson of the 'demise' of U.S. merchant marine has excluded the success story of how the Clinton and Bush administrations, maritime labor, vessel operators and Congress have worked together to reconstitute a modern and competitive U.S.-flag merchant marine."

Schubert continued: "The bipartisan effort to revitalize the U.S.-flag merchant marine became a priority after the first Gulf War. During Desert Shield/Desert Storm, the commercial U.S.-flag merchant marine performed admirably. However, it was evident that our ability to provide sealift support for a prolonged 'two-front' conflict could not be sustained. The need to take action became clear when foreign-flag vessels chartered to support our military refused to enter the war zone when the shooting started.

"Progress was made to rebuild a modern fleet of U.S.-flag vessels when the Maritime Security Act of 1996 (P.L. 104-239) was signed into law by President Clinton," Schubert wrote. "The act authorized the creation of the Maritime Security Program (MSP), which was designed to service both the commercial and national security needs of America. The MSP replaced the costly Operational Differential Subsidy Program referred to in Mr. Bank's article. The MSP essentially pays a retainer to the U.S.-flag vessel operator to be available to the military in times of national emergencies. President Bush subsequently signed into law the Maritime Security Act of 2003, which expanded the MSP to include a more diverse fleet of commercially viable and militarily useful vessels."

Schubert cited Bank's "outrageous claim" that 'U.S. taxpayers enjoy little or no benefit from' the current U.S.-flag fleet, and that 'the U.S.-owned and -operated merchant marine liner fleet no longer exists.'

"First, the MSP saved the U.S. taxpayers approximately $9 billion in appropriations, which would have been required to replicate the capabilities of the U.S.-flag carriers," Schubert wrote. "With regards to the non-existent U.S.-flag vessels referred to by Mr. Bank, the U.S.-flag merchant marine provided one of the most successful sealift operations in American history, supporting Operations Iraqi Freedom/Enduring Freedom (OIF/OEF).

"By October 2004, the combined U.S.-flag commercial/U.S. government assets manned by civilian merchant mariners had shipped approximately 88 percent of all the military surge cargo (34 million square feet of cargo), and 100 percent of the sustainment cargo," Schubert wrote. "In addition, more than 6,200 merchant mariners, including 83 midshipmen from the United States Merchant Marine Academy, had served our country with honor supporting sealift operations for OIF/OEF."

Schubert concluded: "Mr. Bank got one fact correct in his article – you really should 'Just Ask the Merchant Marine' for a good example how to salvage the U.S. auto industry. The manufacturing base represented by the auto industry is critical to our national security interest and economy. The administration, Congress, labor and management should work together to save our domestic auto industry with the least impact on the American taxpayer."