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

People & Company News

Shipping Confidence Hits 2.5 Year Low

Overall confidence levels in the shipping industry fell to their lowest level for two-and-a-half years in February 2015, according to the latest Shipping Confidence

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

All American Marine Delivers Ferry to Seattle

All American Marine, Inc. (AAM) today announced the delivery of a new passenger ferry that will serve the city of Seattle.    The vessel, MV Sally Fox, was dedicated

Energy

World's Largest Ship: Pioneering Spirit Awaits Completion

Final construction aboard the world’s largest vessel, Pioneering Spirit (formerly named Pieter Schelte), is wrapping up in the Port of Rotterdam before the vessel

U.S. Submits Formal Plan for Paris Climate Talks

The United States on Tuesday formally submitted its climate change strategy to the United Nations, outlining domestic measures it is taking to achieve up to a 28

India Halts Iran oil Imports Under U.S. Pressure

Oil imports from Iran at 220,000 bpd in year to March 31. U.S. pressured India not to raise annual Iran oil imports. India halted oil imports from Iran for the

Government Update

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

H2O’s Owens CrapZapper Offers More

H2O’s Owens CrapZapper marine sanitation device has dual certification to the latest IMO and USCG standards for operation anywhere in the world.   Features include low maintenance,

Japan, U.S. Look to Expand Naval Cooperation

Japanese Prime Minister Shinzo Abe's push to allow Tokyo to come to the aid of an ally under attack will pave the way for closer cooperation between U.S. and Japanese forces across Asia, a top U.

Logistics

U.S. DoI Upholds 2008 Shell Arctic Lease

The U.S. Interior Department on Tuesday upheld a 2008 lease sale in the Chukchi Sea off Alaska, moving Royal Dutch Shell a step closer to returning to oil and gas

Direct Le Havre to Charleston LCL Import Service

CaroTrans has announced the addition of an expedited Le Havre, France to Charleston LCL import service.    This is the only direct, weekly Le Havre to Charleston LCL service available in the market.

DryShips to Sell its Suezmax Tanker Fleet

DryShips Inc. (NASDAQ: DRYS), has announced  that it has entered into firm sales agreements with entities controlled by the Company's Chairman and Chief Executive Officer,

 
 
Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.2222 sec (5 req/sec)