Page 85: of Maritime Reporter Magazine (October 1998)

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U,S, MARITIME REPORT

IVIr. Danjc/ek Goes To Washington?

While it surely did not evoke the raw emotions delivered by Jimmy Stewart in one of his classic roles, the recent testimony before a

Senate committee to debatre the alteration of the Jones Act has stirred controversy and heated debate among industry insiders. (P.S. "Mr. Danjczek" is Thomas A. Danjczek (pictured on page 93), president of the Steel Manufacturers Association).

The 78-year-old Jones Act's staunch supporters and mortal enemies are at it again, as a veri- table brouhaha has erupted over whether to change or main- tain the controversial poli- cy, a fight which has landed in the laps of the

Committee on Commerce,

Science and

Transportation.

Specifically, The

Freedom to Transport Act,

S.2390, was introduced by

Senators Sam Brownback and Jesse Helms to reform the Jones Act, rescinding the U.S.-build requirement for shipments of forest products and bulk cargoes.

Section 27 of the Merchant

Marine Act of 1920 (The

Jones Act) requires that all goods shipped from one

U.S. deepwater port to another be carried on ves- sels built in the U.S., regis- tered in the U.S., staffed by

U.S. crews and owned by

U.S. citizens.

In short, proponents of the Jones Act suggest that the elimination of the U.S.- build provision will, among other things, destroy the

U.S. shipbuilding base, threaten national security, and endanger the environ- ment. Proponents for change claim the act is not only antiquated in today's world economy, but that it helps subsidize a small seg- ment of U.S. industry while simultaneously constricting economically viable trans- portation venues.

The latest push to alter the Jones Act centers on the availability of deepdraft vessels primarily on the

East Coast. The situation apparently started with complaints from North

Carolina pork and poultry producers, who claim there was no viable water trans- portation means for them to receive shipments of U.S. corn to augment local stocks, except by purchas- ing Canadian grown prod- uct.

William B. Saunders of

October, 1998 the Murphy Family Farms and director of Ingredient Procurement and Grain Operations claimed in his testimony that "after five years of diligent effort, the only reason- ably competitive cargo that we have been able to procure via water has been foreign cargoes the port foreign ves-on delivered to

Wilmington, NC sels."

In his testimony, Thomas A.

Allegretti, president of The

American Waterways Operators (AWO) said: "After learning about (Continued on page 93)

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