American Maritime Partnership president cites unprecedented congressional support for Jones Act
The following is excerpted from remarks delivered by the president of the American Maritime Partnership, a coalition of which American Maritime Officers Service is a member and which American Maritime Officers supports.
WASHINGTON - Newly-elected American Maritime Partnership (AMP) President Ku'uhaku Park on February 24 provided closing remarks on day one of the Capital Link Jones Act & U.S. Flag Shipping Forum.
"The Jones Act is the fundamental law of our business, underpinning an industry that supports nearly 650,000 family-wage jobs and provides more than $150 billion in economic value every year. Labor income for the exceptional mariners and other workers in this industry totals about $40 billion annually. There are about 40,000 vessels in the U.S. domestic fleet - one of the largest domestic fleets in the world," Park said.
"The benefits of the U.S. domestic industry are not confined to one part of our country. As you might expect, Louisiana, Florida, Texas and California are the top four states for American domestic shipping jobs, but the industry's impact extends far beyond that. For example, the largest shipbuilding state is Virginia although there are major shipbuilding clusters scattered around the country. The largest number of vessels operate on the inland waterway of the United States in the guts of our nation, in places like Tennessee, Kentucky and beyond. American vessels carry essential goods in the non-contiguous trades of Puerto Rico, Alaska and here in Hawaii. U.S. tankers and tank vessels transport critical crude oil and refined petroleum products along the West, Gulf, and East Coasts of the nation. The American bulk fleet carries iron ore and other products on the Great Lakes from places like Minnesota and Michigan, including supplying America's major steel manufacturers at mills in Indiana and beyond," he said.
"I'm happy to report that overall support for the Jones Act in Congress and the Administration has never been higher than it is today. It has never been higher! An overwhelming majority of the Members of Congress in both parties and in both chambers support the Jones Act. In addition to the Congress, this Administration is extremely supportive of the Jones Act. President Biden strongly supported the Jones Act during the campaign and then reiterated his strong support publicly almost immediately upon taking office," Park said.
"Historically, the Jones Act has enjoyed support for three reasons: national security, homeland security and economic security. Senior military officials and senior homeland officials have consistently talked about the importance of the Jones Act to the security of our nation. The Jones Act also contributes to our economic security. 650,000 jobs. $150 billion in economic impact. It is not lost on our elected leaders that repealing the Jones Act would be outsourcing our nation's jobs and security," he said.
"National, homeland and economic security are the historical reasons Congress has supported the Jones Act. But another reason for the strong support today is the supply chain crisis, which has reminded us all in vivid ways that reliable transportation is not an academic point. The recent supply chain crisis has really underscored the importance of a reliable domestic maritime industry, particularly in the U.S. non-contiguous trades," Park said.
"Today, as you all know, America faces one of its worst supply chain disruptions ever for containerized cargoes. Record numbers of vessels are waiting outside of America's largest ports, containers are stacked on docks, warehouses are overflowing, and there is a current shortage of labor, such as truck drivers, among many other problems. There is rightly an intense amount of attention on international supply chain issues. The maritime industry rarely makes the front pages of newspapers, but the supply chain crisis has captured the world's attention," he said.
"It is a dismal picture with one bright spot: the performance of the U.S. domestic maritime industry. Across the country, including in areas like Alaska, Hawaii, and Puerto Rico that are dependent on ocean shipping for their basic goods, American carriers have continued to provide reliable, regular service to the ports that they serve, while international carriers wait at anchor off the U.S. coast. U.S. domestic shipping has delivered merchandise without the huge spikes in freight rates and service challenges that the U.S. international markets are experiencing. Additionally, when the COVID-19 pandemic began, international carriers canceled more than 500 trans-Pacific sailings. In contrast, Jones Act carriers have provided uninterrupted service and maintained a lifeline to many states and communities," Park said.
"Officials in Congress and the Administration have noticed and appreciated the way the domestic shipping supply chains have remained stable, reliable, and cost-efficient during the crisis. The strong performance of the domestic fleet during the supply chain crisis is particularly powerful because of the emergence of China as a superpower with significant maritime ambitions. China has made clear its desire to control the seas. But the supply chain crisis has been a vivid reminder that allowing foreign control over American domestic shipping would create serious vulnerabilities. For example, in my home state of Hawaii, allowing state-owned Chinese shipping companies to control the route between here and the mainland would be unacceptable. That would allow Chinese carriers to use their economic leverage over Hawaii for purposes that would be contrary to our interests. That fact has been lost on no one. The current crisis makes the national security importance of the Jones Act obvious."