Page 12: of Maritime Reporter Magazine (October 2017)

Never Let a Good Crisis

About the Author

Joseph Keefe is a 1980 (Deck) gradu- ate of the Massachusetts Maritime

Go to Waste

Academy and the editor of both Mari- time Logistics Professional and Marine-

News magazines. He can be reached at ON POINT WITH JOE KEEFE [email protected]

And other well-worn clichés.

Some things never change. For example, permanent exemption from its requirements. continue long after the clean-up is complete; can manage that unique capability.

my good friend and OMSA President & CEO What’s really happening in Puerto Rico at the with or without a Jones Act. Who says so? Jones Act shipping does come at a premi-

Aaron Smith told MarineNews magazine moment, however, tells another story. I do. After spending the better part of three um, and that premium pays for itself in the readers in September 2016 that, “I’m running The two biggest Jones Act operators in the blissful years commuting back and forth from ability of the country to defend itself using a out of ways of telling the Board of Directors Puerto Rico markets have permanent opera- this island paradise, I know a little bit about robust sealift capability – the same one that is and membership of the latest unprecedented tions in PR, employing hundreds. They’ve how things do (and don’t) get done there. amply supplying Puerto Rico with goods to- attack against the Jones Act.” That reality is built dedicated terminals in the island, they There is no lack of U.S. ? ag tonnage or ca- day – during good times, times of con? ict and as true today as it was 12 months ago. This burn (or are planning ) LNG in their state-of- pacity in this trade corridor. In the end, how- in dire emergencies. As the cleanup in Puerto latest assault comes in the choppy wake of the-art ? eet (so that the good people of the ever, the only ‘fact’ that matters to the general Rico continues, hot spots such as the South

Hurricane Maria, a storm that recently wal- commonwealth can breathe easier), and both public is that if you tell a lie often enough, the China Sea, the Middle East, and North Korea loped Puerto Rico. The latest line from Jones ? rms built ? t-for-purpose tonnage to meet the masses will believe that it is true. Because, all threaten to explode with little or no notice.

Act opponents is that the Jones Act is solely island’s unique needs (vessels that accom- hey, why let the facts get in the way of snappy Can we count on our good friends across the responsible for the slow and painful recov- modate the U.S. over-the-road 53’ trucking NYT OP/ED? globe to support our armed forces in such cir- ery now underway there. Taking a page from model). I guess your tramp, voyage-charter cumstances? I’m not so sure about that.

Winston Churchill, these folks ‘never let a low price operator would do better. Not so Senator John McCain – the U.S. lawmak-

Be Careful What You Wish For good crisis go to waste.’ much, actually. Jones Act naysayers would have you be- er who is arguably best known in maritime

Without discounting the horrible tragedy By all accounts, the collective U.S. ? ag re- lieve that the elimination of this almost 100- circles for regularly pushing legislation to that the storm represents, it is also true that sponse was remarkable, it was pre-staged and year old statute would bring instantaneous repeal the Jones Act – is, without a doubt, a the Jones Act has absolutely nothing to do instantaneous – and it is ongoing. My under- and substantial relief to American consum- war hero, a veteran and someone who has for with whether the needed aid and supplies are standing is that they are delivering mountains ers all across the fruited plain. While that years passionately advocated for people and getting inland to those who need this help of cargo daily – some of it going directly onto assertion is very much a bone of contention causes that he supports. We can and should the most. Nevertheless, President Trump the multi-million dollar docks built by these from both sides of the equation, it is the long celebrate a life of service. As he tries to sell waived Jones Act shipping restrictions for turnkey operators. In fact, they’ve got cargo term impact of such an event which doesn’t his latest bid to roll back the Jones Act, and

Puerto Rico at the request of the island’s gov- stacked up that can’t be loaded or discharged get nearly enough attention. That’s because, just because he’s got some oceanfront prop- ernor, Ricardo Rosselló and after an outcry because their own vessels are already at the while most stakeholders focus on the less erty in Arizona, that doesn’t also mean that from Congress about the scarcity of fuel, docks doing just that in the commonwealth. than 300 deep draft, blue water ships left in we have to buy any. A 23-year U.S. Navy food and emergency supplies following Hur- The Government Accountability Of? ce the ? eet, the U.S. merchant ? eet consists of veteran who doesn’t understand the inherent ricane Maria. The move, for the time being, (GAO) reports that two-thirds of the ships approximately 40,000 hulls of every shape, value of a robust sealift capacity is the last placates local residents and responders who serving Puerto Rico are foreign ? ag vessels. size and type. Supporting that ? eet are 124 person who should be leading a discussion of feel that the U.S. ? ag operators are the cause As many as 55 different foreign carriers pro- active shipyards in 26 states, creating 110,000 cabotage rules. Yes, we should all be careful of not only this crisis, but indeed, all of their vide imported cargo to Puerto Rico and these jobs, $9.2 billion in labor income, and $10.7 of what we wish for.

problems. Ultimately, when recovery does registered carriers compete directly with U.S. billion in gross domestic product, or GDP, to come, it won’t have anything to do with who ? ag operators. No one is stopping the locals the national economy.

That won’t play in Peoria delivered the goods in the ? rst place. from using more. Nevertheless, the New York According to the U.S. Maritime Adminis- Finally, we circle back to the +/- 220,000

Times published an OP/ED this week enti- tration, economic activity associated with the professionals who make up the domestic cre- tled, “The Jones Act: the law strangling Puer- industry reached 399,420 jobs, $25.1 billion dentialed mariner pool. We shouldn’t expect

If you repeat a lie often to Rico.” Another piece claims, “President of labor income, and $37.3 billion in GDP in John McCain or the army of anti-Jones Act enough, it becomes the truth

The residents of Puerto Rico and their lead- Trump is denying more aid to Puerto Rico.” 2013 alone. Make no mistake, all of that will lobbyists in Washington to give them a sec- ership have long believed that the Jones Act What’s the real story? Thousands of go away with the Jones Act, if it is repealed, ond thought. And, they won’t. But, when the – that American law that requires that goods cargo containers are backing up at the port including the skill set that exists today to next ten-barge tow of North Dakota crude oil and passengers shipped between two U.S. of San Juan, ? lled with essential goods, re- make it possible. Along with that will disap- passes that 30-barge parcel of grain headed ports be carried on an American ? ag vessel, lief supplies and other items that the Puerto pear our ability as an island nation to produce for export in the U.S. Gulf, you had better crewed by Americans, and built in America – Rican people desperately need. Sadly, the is- other vessels such as municipal ? reboats, hope that we can trust the folks who are driv- is at the root of all their ? nancial and social land lacks the necessary trucks, functioning tugs, barges, police patrol boats, research ing both pushboats. In the absence of an en- woes. Hurricane Maria merely provided the highways and logistics plan to distribute the vessels and everything else. And if you think forceable Jones Act, however, we can’t know latest pretext for this week’s renewed calls for goods inland. That logistics nightmare, by the it is expensive to build naval vessels today, for sure who is on board either one. And, the end of the Jones Act and/or the island’s way, existed long before the storm and will wait until there are only two yards left who that’s not going to play In Peoria. For that 12 Maritime Reporter & Engineering News • OCTOBER 2017

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