MARITIME TRANSPORTATION: THE ROLE OF U.S. SHIPS AND MARINERS (113–16) HEARING BEFORE THE SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION OF THE COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION MAY 21, 2013 Printed for the use of the Committee on Transportation and Infrastructure ( Available online at: http://www.gpo.gov/fdsys/browse/ committee.action?chamber=house&committee=transportation U.S. GOVERNMENT PRINTING OFFICE 81–148 PDF WASHINGTON : 2014 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2104 Mail: Stop IDCC, Washington, DC 20402–0001 VerDate Aug 31 2005 15:23 Jan 16, 2014 Jkt 000000 PO 00000 Frm 00001 Fmt 5011 Sfmt 5011 P:\HEARINGS\113\CG\5-21-1~1\81148.TXT JEAN COMMITTEE ON TRANSPORTATION AND INFRASTRUCTURE BILL SHUSTER, Pennsylvania, Chairman DON YOUNG, Alaska NICK J. RAHALL, II, West Virginia THOMAS E. PETRI, Wisconsin PETER A. DEFAZIO, Oregon HOWARD COBLE, North Carolina ELEANOR HOLMES NORTON, District of JOHN J. DUNCAN, JR., Tennessee, Columbia Vice Chair JERROLD NADLER, New York JOHN L. MICA, Florida CORRINE BROWN, Florida FRANK A. LOBIONDO, New Jersey EDDIE BERNICE JOHNSON, Texas GARY G. MILLER, California ELIJAH E. CUMMINGS, Maryland SAM GRAVES, Missouri RICK LARSEN, Washington SHELLEY MOORE CAPITO, West Virginia MICHAEL E. CAPUANO, Massachusetts CANDICE S. MILLER, Michigan TIMOTHY H. BISHOP, New York DUNCAN HUNTER, California MICHAEL H. MICHAUD, Maine ERIC A. ‘‘RICK’’ CRAWFORD, Arkansas GRACE F. NAPOLITANO, California LOU BARLETTA, Pennsylvania DANIEL LIPINSKI, Illinois BLAKE FARENTHOLD, Texas TIMOTHY J. WALZ, Minnesota LARRY BUCSHON, Indiana STEVE COHEN, Tennessee BOB GIBBS, Ohio ALBIO SIRES, New Jersey PATRICK MEEHAN, Pennsylvania DONNA F. EDWARDS, Maryland RICHARD L. HANNA, New York JOHN GARAMENDI, California DANIEL WEBSTER, Florida ANDRE´ CARSON, Indiana STEVE SOUTHERLAND, II, Florida JANICE HAHN, California JEFF DENHAM, California RICHARD M. NOLAN, Minnesota REID J. RIBBLE, Wisconsin ANN KIRKPATRICK, Arizona THOMAS MASSIE, Kentucky DINA TITUS, Nevada STEVE DAINES, Montana SEAN PATRICK MALONEY, New York TOM RICE, South Carolina ELIZABETH H. ESTY, Connecticut MARKWAYNE MULLIN, Oklahoma LOIS FRANKEL, Florida ROGER WILLIAMS, Texas CHERI BUSTOS, Illinois TREY RADEL, Florida MARK MEADOWS, North Carolina SCOTT PERRY, Pennsylvania RODNEY DAVIS, Illinois VACANCY SUBCOMMITTEE ON COAST GUARD AND MARITIME TRANSPORTATION DUNCAN HUNTER, California, Chairman DON YOUNG, Alaska JOHN GARAMENDI, California HOWARD COBLE, North Carolina ELIJAH E. CUMMINGS, Maryland FRANK A. LOBIONDO, New Jersey CORRINE BROWN, Florida PATRICK MEEHAN, Pennsylvania RICK LARSEN, Washington STEVE SOUTHERLAND, II, Florida, TIMOTHY H. BISHOP, New York Vice Chair JANICE HAHN, California TOM RICE, South Carolina LOIS FRANKEL, Florida TREY RADEL, Florida NICK J. RAHALL, II, West Virginia VACANCY (Ex Officio) BILL SHUSTER, Pennsylvania (Ex Officio) (II) VerDate Aug 31 2005 15:23 Jan 16, 2014 Jkt 000000 PO 00000 Frm 00002 Fmt 5904 Sfmt 5904 P:\HEARINGS\113\CG\5-21-1~1\81148.TXT JEAN CONTENTS Page Summary of Subject Matter .................................................................................... iv TESTIMONY PANEL 1 Hon. John D. Porcari, Deputy Secretary, U.S. Department of Transportation .. 3 General William M. Fraser III, Commander, U.S. Transportation Command ... 3 PANEL 2 Fred Harris, President, General Dynamics NASSCO, on behalf of Ship- builders Council of America ................................................................................ 20 Joseph H. Pyne, Chairman and Chief Executive Officer, Kirby Corporation, on behalf of American Maritime Partnership .................................................... 20 Mike Jewell, President, Marine Engineers’ Beneficial Association ..................... 20 Augustin Tellez, Executive Vice President, Seafarers International Union ....... 20 PREPARED STATEMENTS AND ANSWERS TO QUESTIONS FOR THE RECORD SUBMITTED BY WITNESSES Hon. John D. Porcari: Prepared statement .......................................................................................... 36 Answers to questions from the following Representatives: Hon. Duncan Hunter, of California ......................................................... 42 Hon. John Garamendi, of California ........................................................ 43 General William M. Fraser III: Prepared statement .......................................................................................... 47 Answers to questions from the following Representatives: Hon. Duncan Hunter, of California ......................................................... 52 Hon. John Garamendi, of California ........................................................ 53 Fred Harris: Prepared statement .......................................................................................... 55 Answers to questions from Hon. John Garamendi, of California ................. 77 Joseph H. Pyne: Prepared statement .......................................................................................... 86 Answers to questions from Hon. John Garamendi, of California ................. 94 Mike Jewell: Prepared statement .......................................................................................... 103 Answers to questions from Hon. John Garamendi, of California ................. 112 Augustin Tellez: Prepared statement .......................................................................................... 115 Answers to questions from the following Representatives: Hon. Duncan Hunter, of California ......................................................... 122 Hon. John Garamendi, of California ........................................................ 122 (III) VerDate Aug 31 2005 15:23 Jan 16, 2014 Jkt 000000 PO 00000 Frm 00003 Fmt 5904 Sfmt 5904 P:\HEARINGS\113\CG\5-21-1~1\81148.TXT JEAN iv Qlnmmittee nn WrauspnrtaUnn aU!l1Jufrastructure lIt.§. 3Hnusc of iB.e:prcatutatiue,S mill §IjUSIH llt~iU'Qitlgtt1tl. j3<li 2U515 Nirk 3.1. iRal)all. 3J3J <1lQuirman iRankil1ll ffiember May 17.2013 SUMMARY OF SUBJECT MATTER TO: Members, Subcommittee on Coast Guard and Maritime Transportation FROM: Staff, Subcommittee on Coast Guard and Maritime Transportatioll RE: Hearing on "Maritime Transportation: The Role of U.S. Ships and Mariners." ---~ PURPOSE On Tuesday, May 21, 2013, at 9:30 a.m .. in 2167 Rayburn House OtJice Building, the Subcommittee on Coast Guard and Maritime Transportation will meet to examine the contributions ofU.S.-tlagged vessels and American mariners to our economy and national security. BACKGROUND U.S. Maritime Industry Statistics Cunently, there are more than 40,000 non-fishing related commercial vessels documented (flagged) in the United States. The vast m"jority of these vessels are engaged in domestic waterborne commerce, moving oYer 100 million passengers and $400 billion worth of goods between ports in the U.S. on an annual basis. Each year, the domestic fleet carries over a billion tons of cargo through the inland waterways, across the Great Lakes, and along the coasts, contributing S I 00 billion in economic output. Of the 40,000 U.S.-flagged vessels, approximately 93 are cunently employed in international commerce moving goods between l! .S. and foreign pOl1S. Over the last 35 years, the number of U.S.-flagged vessels sailing in the intcmational trade has dropped jJ'om 850. The percentage of international commercial cargoes calTied on U.S.-tlagged vessels has fallen from 25 percent in 1955 to approximately 2 percent today. There arc currently 117 U.S. shipyards that build new vessels. There are over 200 aclditional facilities engaged in ship repair. Of the 117, only 6 are major shipyards VerDate Aug 31 2005 15:23 Jan 16, 2014 Jkt 000000 PO 00000 Frm 00004 Fmt 6602 Sfmt 6602 P:\HEARINGS\113\CG\5-21-1~1\81148.TXT JEAN Insert offset folio 1 here 81148.001 v capable of building large naval vessels and oceangoing commercial ships. Since 1983. the U.S. has lost approximately 300 shipyards. The U.S. maritime industry currently employs more than 260.000 Americans. This includes approximately 65,000 mariners, 95,000 port workers, and 100,000 shipyard employees. These jobs represent approximately $29 billion in annual v"ages. Throughout our history, the Navy has relied on U.S. tlag commercial vessels to carry weapons and supplies and terry troops to the battlefield. During Operations Enduring Freedom and Iraqi Freedom, U.S.-flag commercial vessels transported 63 percent of all military cargos moved to Afghanistan and Iraq. An additional 35 percent of the total cargo was carried on government-owned sealift vessels activated from reserve status and crewed by American mariners. U.S. Maritime Laws and Programs Since 1789, Congress has passed several laws to help kccp the U.S. maritime sector competitive in the global economy and maintain a sealift and shipyard industrial capacity necessary for our national seeurity. Current laws and programs include: Jones Act The Jones Act first came into effect as part of the Merchant Marine Act of 1920 to encourage a strong U.S. Merchant Marine for both national defense and economic security. The Jones Act contains a number of provisions designed to protect U.S. shipbuilding and mariner jobs: 1. U.S. Owned and Flagged - Chapter 551 of title 46, United States Code, requires that merchandise and passengers being transported by water