An excellent op/ed by Denise Krepp in Maritime Executive

thanks Denise and Tony for publishing this

[B]Who Will Lead U.S. Maritime?[/B]

The next head of MarAd should be a strong and seasoned industry insider, not an inexperienced outsider like the recently departed David Matsuda.

By Denise Krepp - May 30, 2013

At a House Transportation and Infrastructure Committee hearing last week, Representative Tom Rice, Jr. (R-SC) asked witnesses why the U.S.-flag fleet wasn’t competitive with the foreign-flag fleet. He was told that the reason was complex, and many others in the room shook their heads in agreement.

But the answer isn’t complex. It’s directly related to the fact that this Administration doesn’t support the U.S.-flag fleet. It doesn’t have a coherent maritime strategy. And the political appointees who are supposed to be advocating on behalf of the industry don’t know anything about it. These failures will continue until the Administration nominates a Maritime Administrator who comes from the industry and understands the perilous precipice upon which it currently stands.

Role of the Administrator

The Maritime Administration’s mission is to promote the U.S.-flag fleet. The Administrator of this agency during the first Obama Administration, David Matsuda, was a former Senate staffer who did not have a maritime background. He also lacked management experience. The Administration tried to compensate for these gaps by using taxpayer dollars to pay for leadership training. You can’t learn about leadership and the maritime industry from a Washington, DC office suite. Such knowledge comes from real-world experience and contacts with private sector decision-makers.

The Administrator’s lack of both leadership skills and knowledge of the industry negatively impacted the U.S.-flag fleet during his four years in office. For example, in 2011 the Obama Administration released 30 million barrels of oil from the Strategic Petroleum Reserve, and the majority of it was transported on foreign-flag vessels. The President was advised to release this oil based on guidance, according to a June 2011 Reuters article, from Treasury Secretary Timothy Geithner, White House Deputy National Security Advisor Michael Froman, and Deputy Energy Secretary Daniel Poneman. These men aren’t statutorily charged with protecting the U.S.-flag fleet – that is the responsibility of the Maritime Administrator.

Administrator Matsuda determined that U.S.-flag capacity was not available to transport the petroleum. Based on this determination and information from the Defense and Energy Departments, the Secretary of Homeland Security granted numerous Jones Act waivers to foreign-flag carriers. The determination of non-availability was challenged by the American Waterway Operators and by U.S.-owned and operated companies, who stated that U.S.-flag vessels were indeed available. Despite these challenges, waivers were granted, and U.S. companies and U.S. workers lost income when the petroleum moved on foreign bottoms.

Lessons Learned?

The 2011 incident is relevant today because Administrator Matsuda resigned this month and the Administration must nominate a new Administrator. This new individual will be joining an Administration that continues to chip away at the U.S.-flag fleet. Proposed changes to the food aid program, which Deputy Secretary of Transportation Porcari and General William Fraser, Commander of the U.S. Transportation Command, attempted but failed to successfully defend at last week’s hearing, are merely the tip of the iceberg when it comes to the changes that the Administration could propose absent a strong Maritime Administrator.

The future of the U.S. maritime industry is dependent upon the next Maritime Administrator. If the new nominee is another candidate who lacks management skills and knowledge of the industry, this individual will not be able to fight against those currently in the Administration who want to see the demise of the U.S.-flag fleet. The next Administrator must be someone who has gone to sea, who has the leadership and management skills to manage an agency, and who can go to toe-to-toe with those who openly advocate an end to the Jones Act and cargo preference laws. Now, more than ever, the industry needs a leader who can help it navigate through dangerous waters. – MarEx

Ms. Krepp hits the nail square on the head with this op/ed. But why does the current Administration seem so utterly uncaring and disinterested when it comes to the US maritime industry when even the Pentagon is screaming? Why so unwilling to invest one single simoleon of political capital to defend it? Why so willing to appoint a man into the position of MarAd administrator without the slightest sliver of maritime experience? Why indeed?

[QUOTE=c.captain;111117]thanks Denise and Tony for publishing this

Ms. Krepp hits the nail square on the head with this op/ed. But why does the current Administration seem so utterly uncaring and disinterested when it comes to the US maritime industry when even the Pentagon is screaming? Why so unwilling to invest one single simoleon of political capital to defend it? Why so willing to appoint a man into the position of MarAd administrator without the slightest sliver of maritime experience? Why indeed?[/QUOTE]

Ignorance is bliss. It’s not that they’re purposely out to destroy the U.S. Merchant Marine (or maybe they are… ?), it’s more that they’re just too stupid to know the difference. If you don’t know anything about the maritime industry then you might be more predisposed to appoint someone as the head of MARAD who has a lengthy background in transportation affairs, just not necessarily on the water. I’m not defending Matsuda or the current administration, I dislike them both as much as everyone else on this forum, but he had a track record on capitol hill for working with transportation related issues, then climbed the corporate ladder at the DOT before finally being appointed director of MARAD.

To a corporate “head-hunter” or a politician this chain of events makes perfect sense, but that’s because neither of those parties would know anything at all about the maritime industry, and that’s how people like David Matsuda are dumped on us to deal with.

An excellent podcast worth the listen.

http://www.supplychainbrain.com/content/nc/logisticstransportation/ocean-transportation/single-article-page/article/who-needs-an-american-merchant-marine/