U.S. Merchant Marine – A link in the chain of our national security

1. U.S. Merchant Marine – A link in the chain of our national security March 10, 2011

2. 2011 Navy League Maritime Policy Regarding US Merchant Marine A strong U.S.-flag Merchant Marine and Maritime Industry are essential to support the U.S. national defense and economic security interests. In peace, we rely upon the merchant marine for economic viability, as over 95 percent of trade is transported by ship – less than 3 percent of which is aboard U.S.-flagged ships. In war, we turn to the merchant marine force and maritime industry to transport military reinforcements and materiel. The Navy League is concerned about the diminishing size and strength of the U.S.-flag Merchant Marine and maritime industry.

3. The U.S. Merchant Marine has served its nation for more than two centuries • U.S. Merchant Marine has been a vital component of American Sea Power since the Revolutionary War • The Merchant Marine is a civilian auxiliary of the U.S. Navy responsible for transporting cargo and passengers , except in times of war when, mariners are considered military personnel and can be called upon to deliver troops and supplies for the military • Today, the U.S. Merchant Marine composed of 69,000 seamen, continues to play a critical role in our nation's defense and in support of Operation Enduring Freedom (OEF) and Operation Iraqi Freedom (OIF)

4. The U.S. Merchant Marine provided the greatest sealift in history during WWII • Prior to the war, the total of experienced mariners was 55,000. During WWII this number increased to over 215,000. • During WWII, 1 in 26 mariners serving aboard merchant ships perished in the line of duty, suffering a greater percentage of war-related deaths than all other U.S. services.¹ • 2,825 merchant Allied vessels were sunk during WWII by German U-boats (military submarines).² • In 1988, a law granted veteran status to merchant mariners who served in war. Prior to such legislation, they were considered civilians and were not eligible for veteran's benefits given to U.S. armed forces. 1942 propaganda poster ¹ War Shipping Administration Press Release 2514, January 1, 1946 ² Crocker III, H. W. (2006). New York: Crown Forum.

5. Our U.S. Merchant Marine is aging and baby boomers are getting ready to retire Source: MARAD

6. Cargo load optimization Voyage planning and execution Basic load optimization Optimum trim guidance for all vessel classes Other Initiatives • Alternative fuel tests • New propulsion technologies • ISO 14001 certified • Crew awareness and engagement • SOx scrubber studies • QUEST: Low energy chilled containers • Modified bulbous bow • Micro bubbles • Ballast water optimization and treatment systems Main Engine efficiency Auxiliary Engine efficiency Monitoring of new paint technologies Cylinder oil optimization Monitoring of hull & propeller conditions Propeller technology enhancements Ships’ technologies are evolving to improve maritime performance requiring mariners to constantly acquire new skills • Waste heat recovery system • Slow steaming and super-slow steaming

7. U.S. Merchant Mariners’ training requirements are exhaustive • Federal or State Maritime Academies (i.e. United States Merchant Marine, California, Maine, Massachusetts, Texas, and New York Academies) ensure a consistent supply of well trained merchant marine officers • “After graduating from the USMMA, new Merchant Mariners will have three credentials – a degree, a Naval Reserve commission and a Merchant Mariner license.” (excerpt from SEAPOWER magazine February 2011) • All mariners have to complete training requirements set out by the U.S. Coast Guard (USCG) Code of Federal Regulations specific to their position • Mariners that work on seagoing vessels that go beyond the boundary lines (as defined in Title 46 CFR Part 7), have to comply with the requirements of the International Convention on Standards of Training, Certification, and Watch Keeping (STCW) • Carriers, such as MLL require their mariners to fulfill additional training: • Electronic Chart Display & Information Systems (ECDIS) • Drug and Alcohol Collection Training • Engine Specific Training from manufacturers (MAN B&W, Sulzer/Wartsilla) • EPA and Environmental training onboard • HAZMAT Training • Vessel security officer slips, trips and falls training • Senior Officer Safety Leadership Conferences • Unlicensed Safety Leadership conferences

8. U.S. Merchant Mariners are subject to piracy risks Current vessels held by Somali pirates: 33Total number of Hostages: 712 Source: ICC International Maritime Bureau (IMB) - updated on  02/15/2011

9. The Maritime Unions play an important role in our nation’s merchant marine • The Unions protect their members’ job security by shaping policies and programs that ensure the continuation of a strong U.S. maritime industry • Merchant Mariners are recruited through the Unions including: • American Maritime Officers (AMO) • Seafarers International Union (SIU) - unlicensed • Masters, Mates and Pilots (MMP) • Marine Engineers Beneficial Association (MEBA) • They negotiate salaries with the Carriers and provide paid vacation, pension, medical, and education benefits • They offer advanced and comprehensive training, license upgrading and Standards of Training, Certification and Watchkeeping programs

10. ‘ ‘ ‘ ‘ [W]e simply cannot, as a nation, fight the fight without the partnership of the commercial maritime industry. Without the U.S. flag commercial fleet the U.S. would be unable to deploy and sustain its military forces on a global basis. General John W. Handy, USAF U.S. TRANSCOM former Commander

11. The Maritime Security Program is a critical enabler of U.S. military sealift • DOD-funded, MARAD- administered program • MSP allows the U.S. government access to: • Military-useful U.S. flag vessels that participate in international commerce for commercial and national security needs of the U.S. • Intermodal assets including logistics management services, infrastructure, terminals facilities, and U.S. merchant mariners to crew government owned/controlled and commercial fleets • MSP provides carriers with: • Direct payments to U.S. flag ship operators engaged in international trade to partially offset higher operating costs associated with U.S. flag registry

12. MSP participant companies provide for a fleet of 60 military -useful vessels

13. The U.S. military benefited from the flexibility and global reach of commercial ocean carriers to greater extent than in past contingencies OIF and OEF sealift rely on commercial U.S. flag carriers in MSP Sealift of OEF/OIF Cargoes 2002-2008 Foreign Flag 3% 10% VISA and Other U.S. Flag Charters 40% 57% Government 90% Carriers in the Maritime Security Program (MSP) U.S. Flag Commercial Total: 44.6 million measurement tons

14. Through the VISA program, carriers commit their fleet to support the U.S. military • Voluntary Intermodal Sealift Agreement (VISA) allows the U.S. Government assured access to U.S. flag assets, Intermodal capacity which includes dry cargo ships, equipment, terminal facilities and intermodal management services and supports the emergency deployment and sustainment of U.S. military forces • Carriers must participate in VISA to qualify for: • MSP payments • The highest priority for moving Defense cargo in peacetime • VISA provides carriers with: • Established incentive compensation for contingency operations • Reduced carrier risk of commercial disruption during contingencies Since the Maritime Security Fleet was first established, the U.S. government has realized $70 billion in capitalization and re-capitalization cost benefit savings for the vessels and intermodal infrastructure capabilities provided through MSP/VISA.

15. We must preserve the capability of U.S. Merchant Mariners • MSP/VISA bolsters and leverages the capability of U.S. merchant mariners • It provides international seafaring experience in places where we may need to deploy • National control of sealift resources is essential to be assured of the ability to conduct sealift operations in a crisis or war • It ensures the availability of trained, STCW certified mariners to help crew U.S. government sealift assets • MSP has helped preserve our nation’s commercial maritime capability

16. Navy League’s 2011 Maritime Policy Advocates for a strong US Merchant Marine Maritime Security Program (MSP) and Ready Reserve Force (RRF) – Funding is needed for the enhanced 60-ship, 10 year MSP and the recapitalization of the Ready Reserve Force. These assets are worth $8 billion annually to the Department of Defense. Title XI shipbuilding loan guarantee program – Funding is needed to assist U.S. shipbuilders and carriers. The 20 year timetable underlying Title XI will leverage and multiply each appropriated dollar several times over. Maritime Transportation System (MTS) – Funding for MTS initiatives is needed to maintain waterways, ports, inter-modal connections, and the Marine Highway System (short-sea shipping) – all crucial to economic security. U.S. Merchant Marine Academy – Full funding for USMMA and programs at the state maritime colleges and maritime industry training facilities is needed to ensure sufficient numbers of licensed mariners.

17. Questions & Answers

18. Thank you!