2008 Almanac Highlights

Maritime Administration

The mission of the Maritime Administration (MARAD) is diverse and far-reaching: To improve and strengthen the U.S. maritime transportation system — including infrastructure, industry and labor — to meet the nation’s economic and security needs. MARAD also seeks to ensure that the United States maintains adequate shipbuilding and repair services, efficient ports, effective intermodal water and land connections, less congested transportation routes and reserve shipping capacity for use in time of national emergency.

MARAD is the principal advocate for waterborne transportation systems and federal programs supporting the marine mode within the Department of Transportation. Changing demographics, trading patterns, economic growth and consumer demand are straining the U.S. transportation infrastructure, intensifying congestion and increasing transportation-related pollutants. Expansion of waterborne services could relieve congestion and improve air quality along highways, and greater integration of waterborne shipping into the overall transportation system is an agency priority.

Historical Perspective

In the 19th century, U.S.-flag merchant vessels transported more than 90 percent of America’s foreign trade. Today, while 95 percent (by weight) of the nation’s overseas trade still moves by water, only about 3 percent is carried by the U.S.-flag fleet.

Shipping provides a vital link for mobilizing U.S. armed forces for military contingencies and supporting civilian emergency response. Auxiliary sealift provided by the U.S.-flag Merchant Marine has played a vital role in American success in all wars and many of the international crises in which U.S. forces have been involved. MARAD vessels have supported the deployment of U.S. armed forces during Operation Enduring Freedom as well as maintaining continuous logistical support for Operation Iraqi Freedom.

MARAD provides the programs for the integration of civilian support for military requirements. Many of these programs provide not only a planning aspect, but a platform for discussion with the military on its priorities.

Maritime Security Program (MSP)/Voluntary Intermodal Sealift Agreement (VISA)

The MSP and VISA programs make commercial ships and intermodal sealift capacity available to the U.S. armed services. The programs are designed primarily for sustainment sealift, maintaining sealift capacity when the initial surge period has passed.

VISA is sponsored jointly with the Department of Defense (DoD) and includes nearly all of the U.S.-flag oceangoing cargo fleet. VISA participants commit specific vessel capacity, intermodal equipment and management services to the DoD. The VISA program is the means used by the DoD to preplan the availability of militarily useful commercial vessels in times of emergency. In return for their capacity commitments, VISA participants receive priority consideration for the award of DoD peacetime cargo.

During fiscal 2007, MARAD and the U.S. Transportation Command conducted the first test activation of VISA, and reaffirmed that the industry could play a major part in responding to DoD requirements.
MSP-generated capacity is a significant component of VISA. MSP participants are required to enroll 100 percent of their MSP ships and a corresponding level of intermodal resources and services in the VISA program. These two interlocking programs serve to maintain a U.S.-flag fleet in oceangoing commerce, both in peace and war.

During 2007, the Maritime Administration maintained the enrollment of 60 ships in the MSP and an overall enrollment of 125 ships in the VISA program. Since January 2003, 89 VISA ships have been used to support Operation Iraqi Freedom/ Operation Enduring Freedom, including 63 MSP ships. One additional VISA ship supported the rebuilding of Iraq.

On Oct. 1, 2005, MSP operators began operations in U.S. international trade under the reauthorized MSP. Subject to the availability of funds, MSP companies will receive $2.6 million per ship per year for fiscal years 2006-2008, $2.9 million per ship per year for 2009-2011 and $3.1 million per ship per year for 2012-2015.

The current MSP fleet includes 35 container ships, five geared container ships, 15 roll-on/roll-off (RO/RO) vessels, two heavy-lift ships and three product tankers. A chart illustrating the 60 ships, their types and their operating companies, is available at www.marad.dot.gov/Offices/MSP_Fleet.xls

Ready Reserve Force (RRF)

The RRF is the active component of the National Defense Reserve Fleet (NDRF). The RRF provides vessels for surge and sustainment sealift capability to the DoD. The 44 ships of the RRF are owned and maintained by MARAD in varying status of readiness: (Reduced Operational Status) ROS-5 and RRF-10.

An ROS-5 vessel must be ready for sea within five days. Of the 44 RRF vessels at the beginning of 2007, 39 were in ROS-5. They are crewed with 10 merchant mariners who form the nucleus of the sailing crew, perform preventative and routine maintenance on a daily basis, conduct alternative sea and dock trials on an annual basis and receive training appropriate to DoD missions. More than 390 highly skilled merchant mariners comprise ROS crews.

Types of vessels in ROS-5 include: 27 RO/RO ships; six auxiliary crane ships for the transportation of cargo without a developed port; two sea barge ships with 2,000-ton elevators to lift cargo on/off from the stern; two helicopter repair ships; and two special-mission vessels capable of conducting replenishment with naval fleet forces. A third special-mission ship is prepositioned.

ROS-5 vessels are lay-berthed at commercial outports located throughout the continental United States, close to their designated loadports for faster cargo deployment.

During 2007, U.S. Transportation Command directed MARAD to assume responsibility of eight fast sealift ships, to be maintained in an RRF-like condition until jurisdictional transfer to the RRF on Oct. 1, 2008. This will increase the overall RRF to 52 vessels, 47 of which would be ROS-5.

RRF-10 day ships are normally maintained in a NDRF site with maintenance performed on a cyclical basis and extended periods between sea and dock trials. Two Lighter Aboard Ships are maintained in RRF-10.

RRF ships have seen repeated activation for Operation Iraqi Freedom. Of the 10 activations requested by DoD, five were in support of it. During 2007, MARAD RRF ships provided more than 1,711 operating days under DoD control.

Training Availability

NDRF vessels are made available to various groups for training purposes. Ships in the reserve fleet anchorages are used for military, law-enforcement and ship-interdiction training by groups in the Navy and FBI. RRF vessels standing by at port facilities are often used for cargo-handling training.

A total of 82 training events were held during the year, including Navy, Army and Marine Corps cargo-handling units, as well as stevedores sponsored by the Pacific Maritime Association. These RRF vessels also supported security exercises conducted by antiterrorism units from the U.S. Coast Guard and Marine Corps.

Strategic Ports

Strategic ports are commercial ports that have been specifically evaluated and selected for their militarily useful location, facilities, equipment and services. The National Port Readiness Network was established to facilitate coordination within the federal agencies that support deploying forces through these ports in the event of a mobilization or national defense contingency. This coordination is vital to minimizing congestion and disruption of commercial activities while supporting the military’s surge and sustainment cargo operations.

The commercial ports are increasingly important to the nation’s defense as the DoD downsizes and the military relies more heavily on U.S.-based forces. Fifteen commercial ports have been identified as strategic ports by the military and the National Shipping Authority, which is the defense arm of MARAD. These 15 commercial ports are: New York/New Jersey Port Complex; Philadelphia; Hampton Roads Port Complex, Va.; Morehead City, N.C.; Wilmington, N.C.; Charleston, S.C.; Savannah, Ga.; Jacksonville, Fla.; Beaumont, Texas; Corpus Christi, Texas; San Diego; Long Beach, Calif.; Oakland, Calif.; Tacoma, Wash.; and Anchorage, Alaska.

Cargo Preference

U.S.-flag ships are registered in the United States and subject to additional U.S. laws and regulations. Unlike their foreign-flag competitors, U.S.-flag commercial ships must meet strict guidelines for the construction, maintenance, environmental and safety standards, resulting in increased operation costs. To help these ships compete, and provide an incentive to remain under U.S. registry, Congress established a series of cargo preference laws that assist ship owners in defraying costs associated with maintaining their vessels under the U.S. registry. These laws, the first of which was established in 1904, require that some government-sponsored cargo shipped internationally be carried on U.S.-flag vessels.

When the government provides a benefit to help an American industry export U.S.-made products, it often establishes a quid pro quo that requires a certain portion of the exports to be carried on U.S.-flag vessels — when such vessels are available at fair and reasonable rates. Two or more industries therefore are assisted at the same time. The government recaptures the added cost: (a) through taxes on the total gross revenue of the U.S. carrier and (b) on the taxes generated as that total gross revenue flows through the American economy.

MARAD’s Web site (www.marad.dot.gov/usflag) makes it easier for exporters, importers and government agencies to find available U.S.-flag ships to transport cargo around the world.

Ship Operations Cooperative Program

The Ship Operations Cooperative Program brings together U.S.-based maritime organizations to address common problems and develop products that satisfy its members’ common needs, while sharing the costs of that work. Members work in unison to achieve improved safety, efficiency and environmental protection of ship operations.

Maritime Administrator

Sean T. Connaughton is maritime administrator, the agency’s senior official, who advises the secretary of Transportation on commercial maritime matters, the U.S. maritime industry and strategic sealift. The administrator develops policies and manages agency activities, and serves as commandant of the U.S. Maritime Service and director of the National Shipping Authority. Connaughton recently launched a MARAD initiative to reach out to the transportation industry to develop a plan to ensure the transportation system can handle the stress of traffic from the rising tide of maritime cargo entering the Unites States. MARAD officials worry that congestion at U.S. ports and related infrastructure could impede access to seaports and limit the nation’s ability to project military power.

In a related effort, MARAD is opening so-called “Gateway” offices at ports around the country to streamline communications among ports, MARAD, industry, state and local agencies, as well as various agencies within the Department of Transportation. The overarching goal of the Gateway offices is to ensure that the system for moving goods in and out of U.S. ports is viewed as part of a larger transportation system, with an understanding that a problem at a port, for example, can quickly cause ripple effects with rail, trucking, national security and the larger economy.

Maritime Labor and Training

MARAD supports programs to improve the education, training, health, welfare and safety of U.S. citizen seafarers, and ensures the availability of an adequate number of mariners to crew active U.S.-flag commercial vessels during peacetime and in emergencies, as well as RRF ships activated for sealift and/or humanitarian-assistance missions. MARAD operates the U.S. Merchant Marine Academy at Kings Point, N.Y., and provides assistance to the six state-operated maritime academies.

Maritime Issues and Challenges

America faces a vast transportation challenge — congestion — that threatens to overwhelm its ports and its distribution network and erase any efficiencies gained from improved vessel and cargo handling designs. MARAD is supporting greater use of the nation’s waterways to alleviate landside congestion in the transportation system. There also is a worldwide shortage of trained mariners due to many factors, including the rapid growth of international trade. MARAD has taken action to identify the magnitude of the shortage and, through its crewing initiative, has secured agreements with international companies to hire U.S. mariners on liquefied natural gas tankers and on large international fleets.