AMO Currents - The fate of two fleets hangs in the balance as Congress reconvenes

AMO Currents - Posted: September 10, 2013

The fate of two fleets hangs in the balance as Congress reconvenes

By Tom Bethel
National President

The jobs of U.S. merchant mariners, the U.S.-flagged ships aboard which they work, and the crucial sealift programs in which they serve so effectively face the unfathomable but now unavoidable prospect of becoming collateral damage of the unrelenting budget battle on Capitol Hill.

As appropriations legislation containing funding for the Maritime Security Program faltered in the partisan divide at the beginning of August, the ability of the Maritime Administration to fund the MSP, as well as the Ready Reserve Force, in fiscal year 2014 became caught in the grinding gears of Congress. In recent meetings with stakeholders from both labor and management, MARAD outlined several possible scenarios encompassing what may happen with the ships in these fleets depending upon what, if anything, Congress and the President can agree upon to provide funding for the federal government going forward as this fiscal year draws to a close.

Under the circumstances, there are several possible outcomes and the situation we are facing is perpetually subject to change. However, most every scenario with which we have been presented includes the lay-up or loss of several U.S.-flagged vessels and the jobs they provide.

The severity of the impact on the Maritime Security Program fleet and the depth of the cuts that could be inflicted by sequestration will depend upon whether Congress can agree on a budget - which seems only a very remote possibility - or again resorts to a continuing resolution to prevent a government shutdown. In either case, sequestration is almost certain to take an arbitrary bite from whatever funding might be approved for the MSP under any circumstances.

With the number of variables in play, delving into the details of each scenario can do little to clarify what exactly we should expect. MARAD estimates between six and as many as 20 of the ships in the MSP fleet will probably enter lay-up at some point in the earlier part of fiscal year 2014.

All of the vessel operating companies enrolled in the MSP have committed to the program through 2025, and we are hopeful that any lay-ups would be temporary and contingent upon funding being restored to the program.

We do know the U.S. Transportation Command would be charged with determining which of the vessels in the MSP would be idled as the result of a funding shortfall. We don't know which of the vessels USTRANSCOM would select.

The Ready Reserve Force fleet faces similarly grim prospects in fiscal year 2014. MARAD - under the leadership of Acting Maritime Administrator Paul "Chip" Jaenichen - is working proactively to project the impact of various budget shortfall scenarios, to find ways of reducing maintenance and operational costs, and to determine how as many RRF vessels as possible can be kept in the fleet, and how to prevent as many as possible from being shifted to deep lay-up status. As with the MSP fleet, it is not yet known in what form or at what level funding for the RRF will be provided or what the outcome will be.

The RRF fleet is a critical component of the Defense Department's strategic sealift capabilities, particularly during the surge and initial resupply phases of U.S. engagement on foreign shores. In the past decade, Ready Reserve Force ships have also supported humanitarian relief and recovery missions on the U.S. Gulf Coast, in Haiti and most recently in the New York/New Jersey area following Hurricane Sandy.

The MSP, which supports a fleet of 60 U.S.-flagged ships, ensures the DOD has full access to militarily useful commercial vessels, as well as their attendant intermodal cargo systems. The MSP gives U.S.-flag commercial carriers the ability to utilize their sturdy supply networks to efficiently and effectively deliver military cargo wherever it needs to be around the world. Through an annual appropriation - currently $186 million for full funding - the program provides the DOD with the ability to leverage about $13 billion in commercial vessel capacity and $52 billion worth of global intermodal assets. The carriers enrolled in the MSP upgrade the fleet as needed at no additional cost to the government. Since 2009, U.S.-flagged commercial ships have delivered more than 95 percent of all U.S. military cargo to Iraq and Afghanistan.

As he set forth the potential frameworks for absorbing budget shortfalls, Jaenichen pledged to work with Secretary of Transportation Anthony Foxx to do everything possible to find funding for the MSP. As do many others, I have confidence in his leadership at MARAD. Jaenichen also attended a recent meeting with Secretary Foxx in which I, along with the presidents of the other U.S. seagoing unions, participated. The MSP was our primary topic.

That meeting was arranged and attended by Maryland Democratic Congressman Elijah Cummings, an outspoken advocate for and ally of U.S. merchant mariners, and a true friend of the U.S.-flag fleet.

Although gridlock maintains a firm grip on Congress at the institutional level, scores of senators and representatives on both sides of the aisle understand and act in acknowledgement of the indispensable roles served by the U.S. merchant marine in the nation's defense, security and commerce. The grim circumstances we face would be significantly worse without their efforts and advocacy.

I urge all AMO members to support the Voluntary Political Action Fund to the greatest extent possible as our union continues to engage these and other issues confronting the U.S. merchant marine on Capitol Hill. While the situation is dire, our determination is undiminished.

We will keep you informed as this situation unfolds, and as always, I welcome your questions and comments. Please feel free to call me on my cell phone at (202) 251-0349.