By Sam Norton, CEO of Overseas Shipholding Group.
A nation that chooses to prioritize a strong defense capability must recognize the critical importance of logistics to the broader mission, particularly the vital role that maritime logistics will play when the combat theatre is distant. While some, if not many, of the assets needed to meet these requirements can be acquired from sources outside the US, the mariners required to operate vessels servicing a conflicted environment must almost certainly be trained and loyal citizens of the United States. To imagine otherwise is reckless.
Thoughtful policy discussions need to eschew simplistic solutions. “Eliminate the Jones Act, and all will be well” is not a prescription for success in meeting the maritime necessities of this country. While free market principles and the pursuit of lowest cost transport solutions are important considerations, they are just two minor factors in the broader discussion about what a US maritime industry should look like – and how best to achieve, and pay for that vision.
Start with the fact deep water trades governed by the Jones Act employ as little as 25% of the total pool of US merchant marines working on ocean-going U.S. flag vessels. Seafaring jobs on vessels sailing in the Maritime Security Program, Tanker Security Program and Cable Security Program support roughly the same number of jobs while vessels chartered by or operated by the Military Sealift Command account for as much as half the total population. Given that U.S. seafarers cost more than their counterparts overseas, all of these programs need financial support, either directly or indirectly. The only way to preserve – let alone expand – the population of mariners and the specialized skill sets that they possess is to ensure the sustainability of platforms and programs that create these jobs.
Achieving this goal requires making informed decisions about how best to offset that cost. No doubt there are different approaches to meet desired outcomes. But, without U.S.-flagged ships to offer mariners meaningful and stable career opportunities, the population of US seafarers will disappear. In today’s environment, few would argue that we should eliminate the branches of our armed services in the interests of allowing free markets to solve our defense needs. Likewise, understanding the vital role that the merchant marine plays in our defense profile, and the benefits of having ships that provide civilian jobs outside of the direct defense budget, is the first step in working towards a sound national maritime strategy.
Samuel H. Norton is the president and CEO of Overseas Shipholding Group Inc. This piece was originally posted on LinkedIn on November 5.
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