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May 2003

President's Report -- War Spotlights MSP's Importance
'Fourth Arm of Defense' Delivers
Historic Decision: Consolidation Petition Approved, East and West Coast CIVMARS Recognized as One
Cargo Preference Laws Upheld
Retired Port Agent Joe Goren Dies
Study: Commercial Shipping Vital to Military Transport
Navigation Fundamentals: New Course Gets Under Way at Paul Hall Center
SIU Official Leo Bonser Retires After 38-Year Career
Upgrading Class Features 3 Father-Son Pairs
Letters to the Editor
Pic-from-the-Past

Home / Seafarers Log / 2003 Archive / May 2003

Study: Commercial Shipping Vital to Military Transport

May 2003

The United States military would be unable to deploy and sustain its forces worldwide without using privately owned, U.S.-flagged commercial vessels, according to a recent report issued by the National Defense Transportation Association (NDTA).

The study by the Maritime Policy Working Group of the NDTA's Military Sealift Committee demonstrates that since signed into law in 1996, the U.S. Maritime Security Program (MSP) has become a pillar of the nation's strategic sealift and global response capability, providing mariners, vessels and intermodal systems to support the military in such missions as Iraq and Afghanistan.

"The findings of this report underscore the recent testimony by General John W. Handy, USAF, the current Commander-in-Chief, U.S. Transportation Command, before a panel of the House Armed Services Committee, in which he stated that we simply cannot, as a nation, fight the fight without the partnership of the commercial maritime industry," said Vice Admiral Al Herberger, USN (Ret.) who chaired the Sealift Committee Working Group that prepared the report. "Our report agrees with General Handy's conclusion that the Maritime Security Program is the linchpin in this country's wartime U.S. commercial sealift capability."

The study also indicates that the MSP is the most economically practical solution for transporting military equipment and supplies. Using privately owned vessels provides the U.S. military with the most "bang for the buck" as the cost for each MSP vessel is only $2.1 million per year, less than one-tenth of the estimated annual operating cost of providing the same capability using government-owned ships.

The U.S. military has estimated it would cost the taxpayer $9 billion to replicate the capacity made available to it through the MSP and its associated Voluntary Intermodal Sealift Agreement (VISA).

MSP ships sail under the U.S. flag, are crewed by U.S. mariners, are operated by U.S. companies and are subject to U.S. laws.

The MSP is set to expire in 2005, and as General Handy testified in October, the U.S. military is fully supportive of reauthorization of MSP and sees it becoming increasingly more important. The ongoing war on terrorism may push the demand for commercial sealift even higher as U.S. armed forces potentially engage in simultaneous operations in several theaters.

"The MSP is an unquestionable success and the private shipping companies that deliver the goods deserve our support--and our thanks," Herberger said.

SIU President Mike Sacco last year led a U.S. maritime labor delegation which testified before Congress on the need to extend and expand the MSP. Presenting a joint statement also signed by officials from the AMO, MM&P and MEBA, Sacco noted at last summer's hearing, "This program is critically important to the American workers we represent, helping to offset the higher cost of operating commercial vessels under the United States flag caused by the multitude of rules, regulations and tax obligations mandated by our government for United States-flag ships but not for their foreign competitors. As such, the reauthorization of this program is absolutely essential to ensure that the United States keeps and expands its privately owned fleet of United States-flag commercial vessels.

"It is the active, competitive, privately owned commercial fleet that provides the shipboard jobs during peacetime that ensures the United States will continue to have the trained American citizen merchant mariners available to crew the more than 150 government vessels that provide the surge buildup at the outset of military conflicts; and the American commercial vessels that provide the reliable, immediate sealift sustainment capability to support military operations overseas."

He further stated that it is "absolutely critical" for both the government and public to realize that "unless merchant mariners have employment in our industry at decent wages and benefits during times of peace, mariners will not be available in times of war or other international emergency. Without a strong American commercial merchant marine, the United States will lose the best and most cost-effective means of transporting supplies needed by our troops overseas. Without reliable commercial sealift, our nation cannot sustain sizeable military forces in combat."

In announcing the recent study, the NDTA pointed out that if reauthorization of the MSP fails or if the provisions of program participation are unattractive to commercial shippers, the U.S.-flagged liner fleet in foreign trades would disappear and force increased reliance on ships of foreign registry, entrusting precious military cargo to non-U.S. crews in times of great crisis. Additionally, a decrease in these ships means slower response time to international conflict, and predictably higher costs to the U.S.

"Our military can't do it all alone," said the NDTA president, Lieutenant General Kenneth Wykle, USA (Ret.). "We need our commercial shipping partners and this study demonstrates the absolute importance and tremendous benefits of this program."

The study finds that the MSP maximizes the capability, readiness and reliability of U.S. strategic sealift through immediate assured access to intermodal capacity with the global reach required to deploy and support U.S. military forces worldwide. The program further permits immediate expansion of sealift capacity in an emergency as well as providing a reserve consisting of un-tapped U.S.-flag capacity. Additionally, the MSP ensures the availability of trained, STCW-certified mariners to crew U.S. government sealift assets.

Also, the study concludes that it is cost-effective to ensure the availability of MSP ships along with their corresponding intermodal systems for sustainment sealift. Another benefit is that the program ensures an intermodal system that is continuously modernized by its private sector commercial owners, without government assistance.

The Military Sealift Committee is one of the three modal committees within NDTA that provides a forum for discussions between military leaders and senior industry executives on issues involving defense transportation.

Organized in 1944, NDTA is a non-political, non-profit educational association dedicated to fostering a strong and efficient global transportation and distribution system to enhance economic growth and security. There are more than 7,800 active corporate and individual members in the association.

The NDTA report is available on line at www.ndtahq.com

 

 
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