Feds Urged to Use U.S. Tonnage in SPR Moves

press release
Monday, February 27, 2012

With Rising Gas Prices Fueling SPR Speculation, American Vessel Operators Urge Feds to Work With Industry To Prepare For Future Drawdowns. Foreign Ships Given Preference During Last Summer’s Drawdown.
 
In a letter to the Departments of Homeland Security (DHS), Energy (DOE) and Transportation (DOT), the American Maritime Partnership (AMP), a broad-based coalition representing U.S.-flag vessel operators and allied interests, today offered its resources to help implement new Congressional requirements that should increase the use of U.S.-flag vessels in future Strategic Petroleum Reserve (SPR) drawdowns. 
 
Several circumstances could lead to another SPR drawdown soon, including an Iranian blockade of the Strait of Hormuz and rising U.S. gas prices.  There are dozens of American vessels with millions of barrels of capacity available to transport oil, according to AMP. 
 
“AMP was troubled by the decisions during the last SPR drawdown to issue waivers for foreign-flag vessels, employing foreign workers to transport oil from the SPR despite the fact U.S.-flag vessels were available to assist,” said AMP.  “AMP recognizes that there may be circumstances where waivers of the Jones Act are necessary, but we want to work with the Departments to maximize the use of available American vessels, employing American workers, in the transportation of SPR oil should another drawdown occur.”
 
The Jones Act is a longstanding U.S. maritime law that mandates the use of vessels that are American-crewed, -built, and -owned to move cargo between two U.S. ports.  The law is critical for American economic, national, and homeland security, which is why it has enjoyed the support of the U.S. Navy, many Members of Congress of both parties, and every President in modern history including President Obama.
 
Release of oil from the SPR in 2011 resulted in nearly 50 waivers of the Jones Act, allowing the transportation of the oil on foreign vessels when U.S.-flag vessels were available to assist.  New Congressional law now requires DHS and DOT to comply with certain requirements to maximize the use of U.S.-flag vessels for the transportation of oil from future SPR drawdowns before Jones Act waivers are approved.
 
Specifically, the new law states that no waivers may be granted until DHS “takes adequate measures to ensure the use of United States flag vessels” and no waivers may be granted unless DOT has determined whether U.S.-flag vessels are capable of assisting an SPR move. DOT is now required to provide DHS with written justification for not using U.S.-flag vessels during an SPR drawdown. 
 
To ensure that the federal government has adequate measures in place to utilize U.S.-flag vessels, the departments are statutorily required to consult with representatives of the U.S.-flag maritime industry.  AMP believes that such consultations with industry should begin immediately.
 
American Maritime Partnership ("AMP") is the voice of the U.S. domestic maritime industry, a pillar of our nation‘s economic, national, and homeland security. More than 40,000 American vessels built in American shipyards, crewed by American mariners, and owned by American companies, ply our waters 24/7, and this commerce sustains nearly 500,000 jobs, $29 billion in labor compensation, and more than $100 billion in annual economic output according to a study by PricewaterhouseCoopers for the Transportation Institute. So efficient are these vessels that they carry a quarter of the nation‘s cargo for only 2 percent of the national freight bill, and being American owned, built and crewed helps make America more secure.
 

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

WCI Applauds Increased USACE Funding

Today WCI applauded the leadership of Senate Appropriations Committee Chairman Thad Cochran (R-MS) and Senate Energy & Water Development (E&WD) Appropriations Subcommittee

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

MPC Honors Crowley for Tank Vessel Safety

Crowley Maritime Corporation’s petroleum services division has once again been honored by Marathon Petroleum Company (MPC) with its annual Elite Vessel Award, which

Energy

US Funding for Air Emissions/Alternative Energy Projects

The U.S. Maritime Administration (MARAD) announced that up to $1.3 million in Federal funding is now available through cooperative agreements for projects supporting

US Oil Platform on Fire in Gulf Of Mexico

An oil platform caught fire and was evacuated in the U.S. Gulf of Mexico offshore Louisiana in the early hours of Friday, though no injuries were reported, the U.

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

Government Update

US Funding for Air Emissions/Alternative Energy Projects

The U.S. Maritime Administration (MARAD) announced that up to $1.3 million in Federal funding is now available through cooperative agreements for projects supporting

WCI Applauds Increased USACE Funding

Today WCI applauded the leadership of Senate Appropriations Committee Chairman Thad Cochran (R-MS) and Senate Energy & Water Development (E&WD) Appropriations Subcommittee

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

Logistics

SoCal Beach Cleanup Could Take Months

The U.S. Coast Guard captain overseeing cleanup of oil spilled from a pipeline rupture that closed two California state beaches and fouled offshore waters near

Myanmar Finds 200 Bangladeshis in Offshore Boat

Myanmar's navy found a boat carrying more than 200 Bangladeshis, the government said on Friday, after the military chief said some migrants landing in Malaysia

Shipping Freight Rates Drop Amidst Overcapacity

Shipping freight rates on the world's busiest route, from Asia to Northern Europe, fell by the largest percentage amount since 2008, reflecting wild volatility

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Port Authority Ship Repair Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1592 sec (6 req/sec)