John Garamendi News

Two U.S. Congressmen are urging the Federal Maritime Commission (FMC) to finalize the rule on demurrage and detention billing requirements required in their Ocean Shipping Reform Act that became law in 2022.The Ocean Shipping Reform Act was signed into law on June 16, 2022 and provides authority to the FMC to investigate ocean carriers’ business practices and apply enforcement measures following the unreasonable refusal of American exports throughout the COVID-19 pandemic.In January 2023, U.S.

John F. Kennedy’s famous locution, “Ask not what your country can do for you, but you can do for your country” remains the rallying call for civic action and public leadership. The message remains foundational to the success of the United States, particularly as we head into an election year that once again appears to be filled with divisiveness and vitriol. That said, before we flip the calendar, it is important to set JFK’s message aside for a moment and reflect upon what our political leadership in Washington…

The Jones Act is a single sentence long, and yet somehow that reservation of U.S. domestic maritime commerce to qualified U.S.-flag vessels has spawned numerous complications with respect to offshore wind energy projects. Although not supported by prior experience, maybe 2023 will bring some clarity.U.S. Customs and Border Protection (CBP) is the primary source of guidance for how the Jones Act applies. CBP issued its first two offshore wind rulings in May 2010 and February 2011 in the heady early days of U.S. offshore wind.

On September 14, 2022, the House Transportation & Infrastructure Committee (T&I Committee), Subcommittee on Coast Guard and Maritime Transportation, held a hearing which indicated a potential revitalization, and new enforcement regime, of U.S.-flag requirements under the Cargo Preference Act of 1954 (the CPA). The hearing occurred on the heels of a Government Accountability Office’s (GAO) report regarding the Maritime Administration’s (MARAD) lack of COA enforcement, with significant recommendations to revamp oversight by the agency to ensure a growing…

A new bill recently introduced by Congressman John Garamendi (D-CA) and U.S. Senator Patty Murray (D-WA) aims to increase federal funding for public ferry services in the United States.The “Ferry Service Expansion Act” would boost funding for both the Federal Highway Administration’s formula and the Federal Transit Administration’s competitive grant programs to the levels requested by the Public Ferry Coalition, building upon New Federal Investment in Ferry Service under Bipartisan Infrastructure Law.Specifically…

Container xChange's latest annual benchmark study of demurrage and detention charges recently showed that the ports in the U.S have the highest demurrage and detention (D&D) charges among the top 60 ports worldwide. Demurrage and detention tariffs have two main purposes: (1) compensating the shipping line for the use of its container and (2) encouraging the merchant to return the container as soon as possible for the shipping line to re-use it and have a fast turnaround. Demurrage is the charge that one pays for the use of the container within the terminal beyond the free time period.

While those in the Beltway continue to struggle to offer solutions to U.S. supply chain capacity issues, it seems apparent that policymakers have at least found their scapegoat for these issues in the form of the maritime industry. A specific talking point during the State of Union Address, a White House-endorsed agreement between the Federal Maritime Commission (FMC) and Department of Justice (DOJ), multiple pieces of legislation, and a vigorous hearing before the Senate Committee on Commerce…

Supply chain issues tied to liner shipping have been front page news throughout 2021; just about everyone agrees that there’s a problem. The underlying cause is right out of Economics 101: a surge in demand for moving containerized cargo, in the face of “inelastic” throughput capacity (which includes vessels and their landside interfaces to surface transportation, trucks and rail) that could not handle the swell, attributable to re-stocking of containerized cargo as economic activity recovered from the pandemic induced jolts.

The U.S. Senate on Friday passed the National Defense Authorization Act (NDAA) for fiscal year 2021, a massive $741 billion defense bill setting policy for the Pentagon. Importantly for the U.S. offshore and maritime industries, the bill includes an amendment ensuring full enforcement of the Jones Act and other federal laws in offshore wind development.The legislation passed the Senate by a vote of 84-13 and now heads to President Donald Trump’s desk for his signature following overwhelming 335-78 veto-proof House passage on December 8.

By the time this article is published, voting will have concluded in the 2020 United States presidential election. Based on the possibility of legal challenges to the election, however, it may be some time before we know who will be occupying 1600 Pennsylvania Avenue on January 20, 2021. Additional uncertainty may linger with regard to control of the Senate. However, beyond the general spectacle of American politics, an important question remains: What does this election mean for the U.S.

The U.S House of Representatives passed the Clean Economy Jobs and Innovation Act (H.R. 4447) aiming to reform U.S. energy policy and authorize significant investment in the transition to greater use of low-carbon energy.The legislation, which addresses a wide range of energy topics and initiatives, includes an amendment by Congressman John Garamendi (D-Calif.) which would enforce Jones Act requirements for all offshore wind development, construction, production and servicing.The amendment clarifies that the Outer Continental Shelf Lands Act…

Congressman John Garamendi and U.S. Senator Roger Wicker reintroduced the Energizing American Shipbuilding Act (H.R.3829), that seeks to revive domestic shipbuilding and maritime industries by requiring that increasing percentages of liquefied natural gas and crude oil exports be transported on U.S.-built, flagged and crewed vessels.The bill would require 15% of LNG exports to be carried on US-built ships by 2041 and 10% of crude oil exports to be carried on US-built ships by 2033.If enacted, the bill is expected to spur the construction of dozens of ships, supporting thousands of good-paying jobs in American shipyards, as well as the domestic vessel component manufacturing and maritime industries.According to an estimate from the Shipbuilders Council of America…

The President says he wants to make American great again, so why is he trying to destroy the principal support system for America’s maritime industry? This week, we learned that President Trump is “seriously considering” issuing a broad waiver for the Jones Act, a critical law that requires domestic shipping in the U.S. to occur on ships that are built in the United States, fly the U.S. flag, and are operated by crews consisting of at least 75 percent American citizens.I served as the top Democrat on the House Subcommittee of Coast Guard and Maritime Transportation for six years.

Mixed Government Support for U.S. Shipbuilding.It has been a busy start to the 116th Congress for the U.S. shipbuilding industry, with three congressional hearings in early March focused on the industry’s role as a critical component of the U.S. national security industrial base. In addition, the Consolidated Appropriations Act, 2019, which was signed into law on February 15, contained mixed news for shipbuilding programs. Through the congressional hearings and enacted legislation, two opposing themes have emerged.

Maritime Challenges in the 116th Congress.The 116th Congress, with its now Democrat-controlled House and 110 newly-elected members, faces a choice. On one hand, Congress can continue to pursue the status quo, supporting U.S.-flag vessel operators and domestic port infrastructure development through existing programs, with suboptimal results. On the other, the 116th Congress can choose to be bold. It can recognize that the U.S.-flag fleet, with only 83 vessels operating in international trade, clearly requires new mechanisms of support.

Rep. John Garamendi introduced House Resolution 550, aka the Merchant Mariners of World War II Congressional Gold Medal Act, in Congress Tuesday.The bill aims to award a Congressional Gold Medal to merchant mariners who served in World War II. The Gold Medal is one of the highest honors awarded in the United States.“Throughout the Second World War, our armed forces relied on the Merchant Marine to ferry supplies, cargo and personnel into both theaters of operation, and they paid a heavy price in service to their country,” said Garamendi.“The Merchant Marine suffered the highest per capita casualty rate in the U.S. Armed Forces during World War II. An estimated 8,300 mariners lost their lives, and another 12,000 were wounded, to make sure our servicemembers could keep fighting.

New legislation approved by the U.S. House of Representatives on Wednesday aims to address maritime transportation safety issues raised by the El Faro sinking, promote the U.S. Coast Guard’s awareness of technologies that could help improve service mission performance, and reduce marine debris.The Save Our Seas Act (S. 756), which was approved in the House by voice vote, combines several pieces of bipartisan legislation recently approved by the Transportation and Infrastructure Committee.

The American Maritime Partnership today announced the launch of the Military to Maritime digital career platform (www.militarytomaritime.org), which is dedicated to helping veterans find meaningful, family-wage jobs in the maritime industry while supporting America’s national and economic security. Building on the numerous Military to Maritime career fairs across the country, the enhanced digital platform connects veterans with career opportunities in the U.S. shipbuilding and…

New legislation proposed this week would require up to 30 percent of U.S. liquefied natural gas (LNG) exports to travel on U.S.-flagged vessels. The U.S. is expected to continue ramping up its LNG exports in the coming years and become a net exporter by 2020, yet there are currently no U.S.-flag carriers to carry the cargo. “We’re the most powerful nation in the world, but 99 percent of our trade travels on foreign-flagged ships,” said Congressman John Garamendi (D-Fairfield, Davis…

The federal government is now taking steps to reverse its 2010 decision to terminate the nation’s LORAN program. The LORAN program was initiated during World War II, when US and Allied forces fighting in the Pacific Theater needed a good means of navigation in that vast ocean. The US Coast Guard was charged with establishing and operating chains of Loran-A stations throughout the Pacific. With war’s end, the program was extended to coastal areas of the United States and elsewhere. Over time, Loran-A was replaced by Loran-C, which provided both greater coverage and improved accuracy.

Congressman Duncan Hunter (R-CA) and John Garamendi (D-CA), Chairman and Ranking Member respectively of the Subcommittee on the Coast Guard and Maritime Transportation, raised concerns today over the Trump Administration’s decision to issue a 10-day waiver of the Jones Act for relief shipments into Puerto Rico. Hunter and Garamendi held a listening session Thursday morning with other members of the Maritime Transportation Committee and representatives from the American maritime industry to explore this issue in depth.

The Chamber of Shipping of America (CSA) this week announced the 2017 Environmewntal Achievement Award Winners. At a dinner ceremony in the Ronald Reagan Building in Washington, DC on November 8, 2017, CSA awarded Certificates of Environmental Achievement to 1,810 ships owned by seventy-two companies with a total of 15,307 years of environmental excellence. The average number of years operating without incident for ships and vessels that received awards is 8.1 years. Two hundred and eighty-six of the vessels have logged sixteen or more years of environmental excellence. RADM Linda Fagan, Deputy Commandant for Operations, Policy, and Capabilities…

The House Transportation and Infrastructure Subcommittee on Coast Guard and Maritime Transportation held a hearing Wednesday on “The State of the U.S. Flag Maritime Industry” during which congressional and maritime leaders stressed the importance of the Jones Act. RADM Mark H. Mr. Mr. The Committee and those testifying expressed bipartisan support for the Jones Act and enforcement of the law. “In order for us to maintain the way of life as we know it as a nation that is secure and is able to project power, be it Navy power or commercial power, the Jones Act is intrinsic to that. Congressman Weber likewise noted the need to maintain a strong domestic maritime industry and the importance of the Jones Act.