Page 13: of Maritime Reporter Magazine (April 1974)

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May, vice president, and William

J. Coffey, secretary-treasurer.

In a review of AIMS's activities,

Mr. Reynolds said the organiza- tion had recently completed its fifth year of operation. AIMS came into being, he recalled, to unify the in- dustry, resolve or minimize the dif- ferences among shipping segments and to speak with one voice on all policy matters affecting the Ameri- can merchant marine, both on the national and international scene. "Some of our goals we have achieved," Mr. Reynolds said. "Others we have not. Disappoint- ingly, there is still devisiveness in this industry; some shipping lines refuse to cooperate to bring about a unified industry. This is the ex- ception, however, rather than the rule. Ninety percent of the indus- try pulls together. It is our hope that the small amount of devisive- ness still poisoning this industry will be overcome, and the Ameri- can merchant marine will be an increasingly effective and dynamic force to be reckoned with in inter- national trade and the pride of a nation determined to rebuild its seapower."

AIMS, Mr. Reynolds added, has been "most active" in 1973 in work- ing with industry and Government to achieve the goals set forth in the 1970 Merchant Marine Act's shipbuilding program. "There is renewed vigor in our industry to- day," he said, "with new high-capa- city ships being added to the roster at an unprecedented peacetime pace. American exporters and im- porters, in the liner trades, are be- coming increasingly U.S.-flag con- scious, and a new fleet of large bulk carriers is coming down the ways.

New names and faces are joining the group of traditional U.S. ship operators — another sign of vigor and growth."

As to the U.S. fleet's 'future. Mr.

Reynolds said: • U.S. liner vessels will be in- creasingly competitive on major

U.S. foreign trade routes and, in many instances, will transport more than 50 percent of the avail- able liner cargoes on certain routes. • The U.S.-flag bulk carrier seg- ment, after years of antiquity and oblivion, will reappear with new highly innovative ships in our na- tion's international commerce, car- rying liquid and dry bulk cargoes safely and economically through- out the world. • U.S. maritime labor and man- agement will continue to work to- gether in a "new era of harmony" that has become apparent in recent years, and • The U.S. merchant marine, after a changeover from a U.S.

Government attitude of neglect to a positive policy of support and encouragement, will finally realize a long-sought goal: to become an indispensable force in U.S. econom- ic, political and defense planning without Which the nation cannot function effectively in peace or war.

Mr. Reynolds cited these prob- lems U.S. ship management faces in 1974: • The current energy crisis, de- spite shipping's cooperative effort to adopt every feasible conservation measure, is a severe burden to an industry which needs adequate amounts of bunker fuel at a reason- able price for its ships. • Some U.S. Government de- partments still treat the industry as a "whipping boy." The Depart- ment of Defense continues to pur- sue a policy designed to drive mili- tary cargo rates down to rock bot- tom in an era of rising costs, and the Department of State still ap- pears to view the welfare of the

U.S. merchant marine as a minor expendable piece on the chessboard of international affairs. • Overtonnaging and predatory rates are a major disruptive influ- ence, and pressures from well- meaning but overzealous environ- mentalists threaten to disrupt U.S. shipbuilders and operators with their advocacy of impractical and unnecessarily restrictive construc- tive standards and opposition to the efficient use of deep - draft vessels.

However, Mr. Reynolds conclud- ed : "Without minimizing these problems, I envision the next five years as promising ones for the

U.S.-flag steamship industry—a pe- riod of stability, growth and eco- nomic maturity for a new and ex- citing marine technology."

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April 1, 1974 15

Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.