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Assault on U.S. Merchant Marine Continues on Multiple Fronts

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Assault on U.S. Merchant Marine Continues on Multiple Fronts Organized 1885 Official Organ of the Sailors’ Union of the Pacific Volume LXXVII No. 7 SAN FRANCISCO, CALIFORNIA Friday, July 25, 2014 Navy League opposes Assault on U.S. Merchant Marine sinking Food for Peace continues on multiple fronts n a letter last month to Senate Majority Leader Harry Reid (D-Ne- rucial maritime programs Administration’s failed effort to vada) and Minority Leader Mitch McConnell (R-Kentucky), Bruce Export-Import Bank I and policies, and key as- gut the Food for Peace Program The Export-Import (Ex-Im) Butler, Executive Director of the Navy League of the United States, pects of the nation’s sea- when they introduced the so- strongly opposed legislation to gut the Food for Peace Program: C Bank of the United States is lift capabilities that depend upon called Food for Peace Reform “Dear Senators Reid and McConnell: under attack by the Tea Party the U.S. merchant marine, have Act of 2014 (S.2421). Rather types and some influential Re- On behalf of our 43,000 members, the Navy League of the Unit- again been placed in crosshairs than continue to ship U.S. grown publicans. ed States strongly opposes the proposed elimination of the Food in Congress. The renewed assault and produced commodities, the The Ex-Im Bank was estab- for Peace (P.L. 480) program introduced in the Corker-Coons bill, on the U.S. maritime industry has legislation provides for purchas- lished in 1934 by President S. 2421. More specifically, the bill proposes to repeal P.L. 480, which brought persistent threats to the ing commodities from foreign Franklin Roosevelt for the pur- was just recently reformed in the bipartisan Agricultural Act of 2014, surface and raised new dangers sources, vouchers and direct poses of financing and insuring and to set up in its place a vast new program outsourced primarily to the job base for U.S. merchant cast transfers. This dangerous foreign purchases of United to the United Nations, weakening our nation’s Merchant Marine and mariners and the long-term read- proposal removes the role of States goods for customers un- our national security. iness of the U.S. military. the American farmer, mariner, able or unwilling to accept credit The Navy League strongly urges the Senate to reject this bill. The dock worker and other stake- Absent the new attacks, the risk. The bank borrows money Navy League of the United States is a civilian nonprofit, nonpartisan holders. Further, the bill directly industry was already facing from the U.S. Treasury and uses organization dedicated to informing the American people and their attacks the maritime industry by challenging time. With the sharp it to help American companies government that the United States of America is a maritime nation, eliminating all cargo preference decline of wartime cargoes to sell abroad by offering low-cost and that its national defense and economic well being are dependent requirements and replacing U.S. Iraq and Afghanistan, the vast loans to foreign buyers or guar- upon strong sea services – U.S. Navy, U.S. Marine Corps, U.S. Coast mariner jobs with foreign seafar- majority carried by U.S.-flag antees against potential losses Guard and U.S.-flag Merchant Marine. er jobs. While the legislation has commercial vessels, and the made by exporters. In fiscal year Corker-Coons would eliminate the current requirement that at gone nowhere and the effort was damaging reduction –from 75% 2013, the bank authorized $27 least half of P.L. 480 cargoes be carried by U.S.-flag vessels crewed affirmatively rejected last year in to 50%– in the U.S.-flag share billion to support an estimated by American citizens, when available at fair and reasonable rates as the House of Representatives, it the Food for Peace cargoes en- $37.4 billion in U.S. export sales, determined by the U.S. Maritime Administration. These food aid is a clear sign that those looking acted two years ago, the cargo including aircraft, power-gener- preference cargoes, the largest by volume in peacetime, are essential base for U.S.-flag operators has to cut out the American maritime to maintaining our U.S.-flag national defense sealift capacity, and ated equipment and oil and gas suffered a dramatic contraction. industry will not stop. are needed now more than ever. The Department of Defense (DOD) projects. That year it sent $106 In a cynical twist, the text of depends on the Merchant Marine for over 95% of our national defense billion to the Treasury Depart- Maritime Security the legislation concludes with sealift needs in times of war or national emergency; over 90% of all ment, money it earned from Program the following passage: “It is the cargoes bound to and from Iraq and Afghanistan were transported interests and fees. In June, the House of Repre- sense of the Congress that the on U.S.-flag ships. Replacing this sealift capacity would cost DOD Why is the Ex-Im Bank im- sentative approved the Trans- United States Merchant Marine: billions of dollars. portant to the SUP and the rest of portation, Housing and Urban (1) is a critical component of our Cargo preference has already been cut to the bone in recent years. the maritime industry? Because Development, and Related Agen- nation’s military and economic Considering that the U.S. has less than 100 flagged ships involved in cargo generated by Ex-Im Bank cies Appropriations Act, legis- security; (2) consists of a fleet international trade and only 12,000 Merchant Mariners, even small funding must be transported lation that contains funding for of private, merchant ships that changes can be devastating, let alone a change this dramatic and aboard U.S.-flag vessels. This the Maritime Security Program are registered in the United unmitigated. The nation’s framework of maritime cargo preference means tens of thousands of jobs (MSP) in fiscal year 2015. Un- States and provide domestic programs and policies should be viewed for their value as a means to for American citizens through- fortunately the bill failed to fund and international transportation grow and maintain a viable U.S.-flag merchant marine and also for out the country. The ships and the program at the authorized for passengers and cargo; and their cost effectiveness since they allow the Department of Defense to their crews that transport Ex-Im $186 million but instead would (3) with the dedicated crews of forego the need to spend billions cargoes are a vital part of U.S. provide only $166 million. If mariners that operate the fleet, of dollars building and maintain- national security. They are part this amount stands, six or more is an essential part of defense ing equivalent assets. The same of a fleet that meets Defesne vessels could be lost from the capacity in times of peace and American mariners that provide Department requirements. 60-ship MSP fleet. in times of war.” this needed value also participate The Export-Import Bank does The Senate version of the On the bright side, the Farm in the food aid programs under not cost American taxpayers a Appropriations Bill currently Bill that passed the House earlier cargo preference. cent and since 2009 has sup- provides for full funding for this year maintains the Food for The Navy League strongly ported 1.2 million American jobs MSP. The Senate bill has been Peace Program while the House opposes the proposed changes according to the Bureau of Labor reported out of committee, but Coast Guard and Maritime Act to food aid and threats to cargo Statistics. preference contained in this has not advanced to a final vote. of 2014 restores the U.S.-flag Support for the Ex-Im Bank is dangerous proposal. The current After passage it must be recon- share of food aid cargoes to 75%, one issue where labor and busi- program assures reliable sealift ciled with the House bill. which the Obama Administra- ness are in complete agreement. resources to the Department of SUP-contracted APL Marine tion vows to fight (see the April Defense at a low price, preserves Services has nine vessels en- West Coast Sailors). continued on page 2 national security, and provides rolled in MSP. wider benefits to the U.S. includ- ing transparency, tax revenues, Food for Peace ILWU and PMA still bargaining Periodicals’ postage paid at San Francisco, CA (USPS 675-180) postage paid at San Francisco, CA Periodicals’ jobs, and savings for other pro- Also in June (see last month’s The contract between the International Longshore & grams. More than $1.9 billion in West Coast Sailors), Senator Bob Corker (R-Tennessee) and Warehouse Union (ILWU) and the Pacific Maritime U.S. economic output, 40,000 Association expired on July 1, but as the West Coast jobs, and our national security Senator Chris Coons (D-Del- are at stake.” aware) resurrected the Obama Sailors went to press, the parties continue to bargain. Hawai’i & Washington Primary Endorsements: Page 4 ESU News: Pages 6 & 7 Page 2 WEST COAST SAILORS Friday, July 25, 2014 Grandson of Matson founder dies SUP Honor Roll William Matson Roth, grandson of Captain William Matson, founder of Matson Voluntary contributions from the membership to the following funds: Navigation Company, died May 29. Roth was born in 1916, a year before his grandfather died at age 67. Captain Mat- son, who came from Sweden as an orphaned teenager, began a long association with Organization/ Political Fund Hawai’i in 1882 by sailing his three-masted schooner Emma Claudina to Hilo from J. Anderson-Kaisa . 20.00 San Francisco.
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