Leadership, Regulatory Issues Facing Maritime Industry
The Ships Operations Cooperative Program (SOCP) convened on October 29th and 30th for its annual Fall Meeting. The event was hosted by the Maritime Institute of Technology & Graduate Studies (MITAGS) and started off with a rundown of impressive accomplishments of what Business, Government, Education, and Workforce can do when they work together, as well as recognition and awards for its members who effect positive change in our maritime industry. This year’s award recipients included Mr. Glen Paine, Executive Director for MITAGS-PMI-CCMIT [pictured above] and Mr. Robert Sheen, Vice President, Operations at Ocean Shipholdings, Inc. Both Glen and Bob have volunteered numerous hours of their time toward supporting the SOCP.
Panel discussions focused on upcoming regulatory issues and proposed solutions on topics that included: the Polar Code; STCW; Ballast Water Management; ECA; and Workforce Recruitment, Development and Retention. By the end of the second day, project proposals were drafted and voted on by the membership to advance initiatives, such as, developing a Military to Merchant Marine Pathway in order to address some of the issues brought up during the discussions.
One of the highlights of the event was the Keynote speech delivered by Congressman Elijah Cummings. Below are some excerpts from his poignant message.
Congressman Elijah Cummings Keynote:
Current Leadership Challenges for America’s Maritime Industry
In July, I had the honor of participating in a meeting with the new U.S. Maritime Administrator, Paul Jaenichen. I stress the word, “honor,” because Paul Jaenichen has been both a distinguished naval commander and a skilled administrator. I can think of no better person to head our Maritime Administration. Equally important, he is a tireless advocate for America’s maritime industry - a passion that I share.
My service as Chair [of the Coast Guard Subcommittee] gave me an invaluable opportunity to learn and contribute to a critical national asset - our maritime industry. Today, my friends, you, too, have important roles to play as we work to resolve the challenges – including the political challenges – facing the U.S.-flagged ocean-going fleet. And I am not speaking only of the organizations of which you are a part. I am speaking to you personally. I encourage you to have confidence in your own competence to contribute to these discussions. Our nation cannot afford to make decisions in a vacuum. You are on the front lines. We all will be better off if you think, learn and have the courage to speak out.
Environment
I know that compliance with the increasingly stringent standards of Annex VI remains a key challenge, given the pending reduction in the allowable sulfur content of fuel that will take effect this coming January 1st.
While I continue to believe that these are critical steps to help protect the environment and human health from the impacts of global shipping, I also understand that there will be challenges and costs associated with these new standards.
Capability of our Maritime Workforce
Another issue that I know is of concern to you is one that we examined in an October 2007 hearing: the capability of our maritime workforce. Educational institutions like MITAGS are a critical resource in ensuring our mariners meet new standards for training and continuing education under the amendments to the Convention on the Standards of Training, Certification, and Watchkeeping. At the time of our hearing seven years ago, MARAD reported that the average age of a U.S. mariner with a Master’s license was 51 while the average age of a Chief Engineer was 50. The hearing also revealed that many U.S. mariners had difficulty obtaining or upgrading a license – both on the blue water side and in the domestic trades.
I understand that meeting changing mariner training standards is a challenge faced by all flag states, but as you may know, an added burden in the U.S. is that of cost. While we have outstanding educational facilities, American students are expected to shoulder their own tuition costs, and that is also true in the maritime industry. In response to that challenge, I authored legislation to create a student loan program to help meet the unique needs of students attending an educational program to obtain or upgrade a document or license, as well as students attending our State maritime academies. This legislation, called the Maritime Workforce Development Act, H.R. 2651, passed the House in October of 2009 on a voice vote. Unfortunately, it was not considered in the Senate.
Changing Political Climate
These political changes have had serious consequences for our domestic maritime industry. Sadly, many of the Congress members who had a deep understanding of the unique issues facing the maritime industry have left the Congress – whether voluntarily or involuntarily. As a result, our domestic industry must constantly work to educate our Members of Congress on an industry that is simply unfamiliar to many of them. Sadly, I must acknowledge, our political climate is now one that does not appear to value investing in our nation’s infrastructure, or supporting domestic industries like the merchant marine.
Standing Up for the U.S.-Flagged Fleet
This has created a challenging environment at a time when the U.S-flagged fleet stands at a critical inflection point. Ladies and gentlemen, as you may be aware, in 2012, there were more than 9,000 individual vessels calling on ports in the United States. However, according to MARAD, at the end of that year, there were just 109 merchant vessels in the foreign trade sailing under the U.S. flag. None of these 109 vessels was built in the United States. Allow me to share my view about that.
Since 1936, U.S. law has held “that the United States shall have a merchant marine sufficient to carry . . . a substantial portion of the water-borne export and import foreign commerce of the United States and . . . capable of serving as a naval and military auxiliary in time of war or national emergency.” However, a 2009 study by IHS-Global Insight found that less than 2 percent of U.S. foreign trade was moving on U.S-flagged vessels.
Despite a statutory requirement that is now nearly 80 years old, the vast majority of U.S. trade – both import and export cargoes – is carried on vessels registered under flags of convenience. So, I would be interested in your viewpoint as to how we can expand America’s U.S.-flagged fleet.
National Security Concerns
The U.S. Merchant Marine remains an essential component of the vast network of logistics contractors that supports our U.S. military and sustains and creates broader economic opportunities in communities around our nation. In fact, vessels participating in the Maritime Security Program (MSP) transported 95% of the waterborne cargoes that supported our troops in Iraq and Afghanistan. However, throughout American history, during periods of demobilization, we have repeatedly allowed our blue water fleet to decay until unforeseen crises have created an urgent new need for sealift capacity. And that cycle appears to be starting over again.
Military cargoes are dwindling and many U.S. carriers do not see new cargoes on the horizon. However, we also are facing new political headwinds of a kind we have rarely ever felt before. We are struggling to make folks understand the unique value of the simple and cost-effective policies that have retained vessels under the U.S. flag in times of war and peace - and we could use your expert help. The historical challenges are now compounded by the challenges of a political environment in which the instinctive first reaction of many is that our only priority must be to cut funding and rely on “the market.” I want to be clear that, contrary to common media characterizations, our nation’s cargo preference programs are like any other “Buy America” programs that ensure that the expenditure of U.S. taxpayer dollars supports U.S. interests.
I am convinced that cargo preference programs must be fully enforced and the Maritime Security Program must be fully funded. However, few Members of Congress really understand the close and essential ties between our merchant marine and our economic and military security. Our merchant marine must fight – and fight hard – just to maintain the few existing policies that support our ocean-going fleet. This is a reality that shapes almost every facet of U.S. maritime policy at this time.
Fortunately, in Administrator Jaenichen and in U.S. Transportation Secretary Foxx, we have champions who are working to meet the challenges of our blue water fleet with a focus and zeal that is unprecedented in recent years. I am truly grateful for their leadership. However, the task we face in supporting – and re-growing – the U.S. merchant marine is a tall one. We would appreciate any help we can get from you in making folks aware of the unique value of a national sealift capacity.
Leadership & The Public’s Trust
My friends, even this brief survey of just some of the challenges facing America’s maritime industry illustrate the need for strong and effective leadership.
From our own experience, we know many of the qualities exemplified by people we respect:
The ability to inspire.
The ability to be objective, seeing and evaluating all sides of an issue.
The ability to demonstrate competence.
All of these leadership qualities reflect a more basic insight. Ultimately, the ability to lead other capable human beings must be grounded in our character, not our ego.
True leadership transcends the ability to perform competently in the mundane challenges of life. In my view, true leadership must be grounded in personal integrity.
Our maritime system is the essential blood stream of our modern world economy. You are invested with power - the ability to do good or, misused, to do incredible harm. Ultimately, leadership in our maritime system is a function of public trust, as well as of competence. And only those who are prepared to live up to this standard can be allowed to lead.
Thank you Congressman Cummings for your heartfelt words and to everyone in attendance to make this event a success.