A Proclamation on National Maritime Day, 2023

     On National Maritime Day, we honor the thousands of dedicated merchant mariners who serve on United States vessels around the world.  During times of both peace and war, merchant mariners are always there — stepping up to transport equipment, troops, and goods across the globe to make our country safer and stronger.

     With professionalism and passion, merchant mariners have forged us into the maritime Nation we are today.  During the Revolutionary War, merchant vessels joined the vastly outnumbered American fleet to help defend our independence.  During World War II, as our brave service members battled the forces of fascism, more than a quarter-million members of the Merchant Marine volunteered to transport tanks, ammunition, and troops across the Atlantic and Pacific theaters.  Many of them made the ultimate sacrifice in the service of freedom.  And today, merchant mariners not only help move hundreds of billions of dollars’ worth of cargo through our 25,000 miles of waterways and more than 360 commercial ports annually — they also crew vessels of our United States Ready Reserve, shipping vital military cargo to help the people of Ukraine defend themselves against Russia’s brutal war. 

     My Administration remains steadfast in its support of the Merchant Marine as well as the Jones Act, which ensures American workers see the benefits of our domestic maritime industry.  We are also making historic investments to improve our maritime supply chains by making it easier, faster, cheaper, cleaner, and safer for ships to get in and out of our ports.  We are strengthening our support for licensed Merchant Marine Officers, including requesting $196 million in my 2024 Budget to upgrade the United States Merchant Marine Academy’s campus, expand training, and help prevent sexual assault and support survivors — because every person at the Academy deserves to feel safe and have their contributions fully valued.  We are also working to advance diversity, equity, and inclusion in the ranks of the Merchant Marine because our economy and national security are strongest when we draw on the full skillsets and diversity of our Nation.

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AGTC’s Friedmann says lack of ILWU-PMA contract could be “dangerous, permanent.”

Agriculture Transportation Coalition (AGTC) Executive Director Peter Friedmann has again warned that the lack of a West Coast labor contract between the International Longshore and Warehouse Union (ILWU) and the Pacific Maritime Association (PMA) could be “dangerous” and “permanent.”

Friedmann provided AJOT with an update sent to AGTC members on the dangers created by the lack of an ILWU-PMA contract: “Currently, too many West Coast marine terminals are operating on reduced schedules, some are open only four days a week, creating massive disruption and trucking, storage expense for agriculture exporters. Terminals are closing because they lack sufficient volume of import containers to justify hiring the longshore labor to keep them open. So, both the terminal operators and the longshore labor are losers.”

On the trend of cargo being shifted from the West Coast ports to East Coast ports, Friedmann explained why cargo losses could be permanent:

“The uncertainty that accompanies marine terminal operations without a labor contract, creates a disincentive to invest in additional facilities through which cargo will transit West Coast gateway ports. For example, transload facilities that might have been built to serve a West Coast gateway are being built to serve cargo through East Coast gateways. The same for warehouses, cold storage facilities, etc. Once those are built, the millions of dollars spent will not be abandoned – the cargo will continue to move through those facilities for years, even decades, to come. This makes it even more challenging for the West Coast gateways to claw back lost import container market share.”

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The U.S. Coast Guard is warning that U.S. ports and marine terminals remain exposed to cyber attacks on a number of different fronts.

In a presentation to the Propeller Club of Northern California, Commander Boris Montatsky, who serves at the U.S. Coast Guard Cyber Command as the Cyber Effects and Protection Division Chief, said there are six areas of risks at ports, marine terminals and on vessels:

Facility Access: A compromise “impacting physical access control systems can lead to supply chain delays and localized traffic congestion in the vicinity of a port.”

Terminal Headquarters/Data: Terminal & Gate Operating Systems (TOS/GOS) streamline the flow of cargo in a port. A compromise “to a port’s TOS/GOS data could result in leaks of sensitive supply chain data from port customers. Manipulation of TOS/GOS data could also be used for smuggling or cargo theft.”

Terminal Headquarters Ransomware: A ransomware attack affecting TOS/GOS systems “could make critical systems and data inaccessible. This could lead to a full stop of port operations, resulting in financial losses and supply chain disruptions. “

Operational Technology (OT) Systems: Maritime infrastructure relies on various OT systems to control pumps, cranes, and other industrial equipment: “The compromise of an OT system can cause safety issues and lead to loss of life or property. In addition, a compromise can disrupt facility operations. “

Positioning, Navigation, & Timing (PNT): PNT often supports many vessels within a port’s vicinity and is critical to maritime operations: “Loss of PNT can impede vessels’ ability to safely navigate a port, and lead to an increased risk of collisions and groundings. Any of these events can result in environmental damage, loss of life, property, or a disruption to safe navigation.”

Vessel: A compromise to shipboard systems “could impact a vessel’s ability to safely navigate and manage their cargo. A vessel compromise could also lead to disruption of shore-side systems, because lateral movement is possible through shared wireless or wired networks, portable media and other interconnections.”

Challengers Fighting Cyber Attacks

Captain Taylor Lam, Commander Sector San Francisco, provided an overview of issues facing the Coast Guard and the U.S. maritime industry: “We’re probably not where we need to be yet, but we have certainly made significant advances and strides in where we need to go…”

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The 96th Annual Propeller Club convention, held in Athens, Greece between September 20th and 22nd, demonstrated the continued power of Greek shipping. The convention was hosted by the Propeller Club of Piraeus under the leadership of President Costis Frangoulis and General Secretary Danae Bezantakou.

The International Propeller Club of the United States convention was called to order by President Jim Patti and supported by Executive Vice President Joel Whitehead. As a reflection of its increasingly international composition, the organization will now be known as the International Propeller Club.

This was reflected in the Propeller Club awards:

• The Port of Piraeus club was recognized by the International President’s Award for Excellence
• Geraldo Tiedemann, Port of Bilbao (Spain) was recognized as the Propeller Club Person of the Year,
• Melina Travlos, President of the Union of Greek Shipowners (UGS) was recognized as Maritime Person of the Year
• The Port of Seattle club was recognized as the Propeller Club Port of the Year

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The United States is facing growing challenges exporting agricultural products abroad at a time when it lacks the U.S. flagged vessels to support international trade, according to panelists addressing a Maritime Day symposium entitled “Do U.S. Exporters Need U.S. Ships?”

The presentations were made before the Propeller Club of Northern California on May 16th via Zoom.

In his welcoming remarks, Jim Patti, president, International Propeller Club of the United States argued that the United States needs to build more commercial vessels as it faces shortfalls in vessel carrying capabilities for exports of agricultural goods and for energy products such as LNG.

U.S. Exporters Will Suffer Again In 2022

Paul Snell, chief executive officer, British American Shipping, Long Beach, California discussed “Challenges for U.S. Exporters in 2022.” He said that ocean carriers will likely not resume their traditional number of sailings at ports such as the Port of Oakland. This will adversely impact U.S. exporters selling to Asian and European markets in 2022.

Snell said there is a serious problem with the lack of infrastructure at ports and he particularly referenced the lack of on-dock rail which has slowed the velocity of imported containers coming into the United States as well as slowing the flow of exported containers. Snell cited the on-dock rail problem at the Ports of Oakland and Houston.

In 2021, California agricultural exporters lost $2.1 billion partly due to deficient port operations, according to a University of California, Davis and University of Connecticut report.

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New infrastructure investments will be needed to support U.S. Great Lakes ports and their expansion, says Steve Fisher, executive director, American Great Lakes Ports Association (AGLPA).

The ports are seeing an increase in shipments of wind turbine components, some expansion of container cargoes and continued shipments of steel products and exports of agricultural products.

At the same time, a May report in Maritime Exchange has noted new containership services at the Great Lakes ports of Duluth, Minnesota, and Cleveland, Ohio:

“The rise in fuel prices has prompted renewed interest in expanding container shipping at America’s Great Lakes ports, like Duluth and Cleveland. There is potential for Port of Duluth to develop containerized dry bulk agricultural exports to Europe, where growing numbers of customers are willing to take delivery of containers of agricultural produce.”

The report went on to explain: “The Port of Cleveland played an instrumental role in developing viable container shipping between Europe and the Great Lakes when it introduced a direct service to Antwerp. A comparatively small container ship of under 1,000 TEU has feasibly carried containers between Antwerp and Cleveland, with rates that compete with the alternative option – a mega-size container ship sailing to Port of Newark followed by high-cost railway connection to Cleveland. The Port of Duluth involves an even greater railway distance (1,250 miles), making direct Duluth – Europe container shipping potentially more attractive.”

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