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America’s Maritime Industry
America’s Maritime Industry
The foundation of
American seapower.
A Report by the Navy League
of the United States
1
America’s Maritime Industry
The foundation of American seapower.
Contents
The Foundation of American Seapower: Summary...........................................3
America’s Maritime Heritage..................................................................................5
U.S. Maritime Policy.................................................................................................6
America’s Maritime Industry Today.......................................................................7
Innovation in America’s Maritime Industry.........................................................9
Productivity.............................................................................................................10
Environmentally Friendly Mode of Transportation.........................................11
Economic Contribution: International Trade....................................................12
Domestic Economic Contribution......................................................................14
Supporting Our National Defense......................................................................16
Defense Industrial Base: Shipbuilding...............................................................18
Defense Industrial Base: Seafarers & Shipyard Labor......................................19
Homeland Security.................................................................................................20
The Past As Prologue.............................................................................................21
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America’s Maritime Industry
The foundation of American seapower.
Summary
Maritime Americans
From amidst the smoke, flames, and debris from the collapsed World Trade Center towers,
hundreds of thousands of New Yorkers and persons from neighboring boroughs and states made
their way toward Battery Park at the southern end of Manhattan to try to escape the chaos that
reigned about them. The bridges and tunnels were closed, the subways shut down. Manhattan
was once again an island as it had been over a hundred years earlier, and they were trapped on
that island. The only escape was by water.
No one was in command. There
was no single plan. (The New York
City Emergency Response Center
was buried in the rubble of the
towers.) But on the surrounding
waters, American mariners of every
description saw the disaster unfolding
and knew, without being told, what
they needed to do. From throughout
the harbor and surrounding areas a
virtual armada of tugs, ferries, dinner
and pleasure cruise boats, working
craft of every description, and
virtually every other craft available
in New York harbor steamed toward
the docks and seawalls of lower
Manhattan to evacuate hundreds of
thousands of fellow Americans.
By nightfall, almost half a million persons had been evacuated by New York mariners who knew
what they had to do and worked together to do it. It was one of the largest maritime evacuations
in history. In that one afternoon and evening, Maritime Americans evacuated more people from
Manhattan than were rescued during the famed Dunkirk evacuation early in World War II.
No industry has been more vital to the success of our country than that of America’s maritime
industry. The industry provides jobs for hundreds of thousands of Maritime Americans in
every corner of our nation—from longshoremen in ports along our four seacoasts, to towboat
operators navigating the Mississippi, to shipbuilders in East Coast dry docks, to the men and
women who crew American-flag vessels of all types.
The American maritime industry moves cargo and troops around the world in far greater volume,
with far greater efficiency, than any other transportation mode. As a first line of defense, it also
proud helps ensure greater homeland security.
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America’s Maritime Industry
The foundation of American seapower.
Summary
The maritime industry transports commercial goods more cost effectively than trucks and
rails — while providing the most environmentally sound mode of transportation. The industry’s
humanitarian role is one that paints a positive picture of America worldwide, as it distributes food
to the world’s poor and responds to global emergencies. And the industry stands as a primary
driver of trade in one of the world’s largest economies.
As detailed in this report, waterborne transportation provided by Maritime Americans is the
lifeblood of much of the nation’s domestic commerce and international trade.
With a heritage reaching back to the earliest days of this nation’s history, this report finds that
America’s maritime industry today —
• Is unique among the maritime nations of the world in its scope, magnitude, and diversity;
• Is characterized by its innovation and productivity, and as being the most environmentally
friendly mode of transportation;
• Plays a vital role in ensuring this nation’s economic well-being and the growth of our economy
both through international trade and its own role in our domestic economy;
• Is essential to our national defense in deploying and sustaining American forces worldwide in
support of our national interests and in the maintenance of the U.S. maritime industrial base;
• Helps ensure our homeland security; and
• Is poised and ready to help this country meet the transportation challenges of the 21st Century.
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America’s Maritime Industry
The foundation of American seapower.
America’s Maritime Heritage
Beyond its historical role in the founding of
our nation, the American maritime narrative
The United States
is unique and extraordinary. The maritime
grew up on the water
industry in America directly or indirectly
and
remains a maritime
provides or supports hundreds of thousands
nation to this day.
of jobs in every corner of our nation; helps
Smithsonian National Museum
ensure greater homeland security; moves
of American History, “On the Water”
cargo to war zones in far greater volume than
(Online Gallery)
any other transportation mode; transports
goods far more cost effectively than any other
mode; is the most environmentally sound mode of transportation; plays a humanitarian function
in distributing food to the poor and responding to global emergencies; and stands as a primary
driver of trade in one of the world’s largest economies.
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America’s Maritime Industry
The foundation of American seapower.
U.S. Maritime Policy
Following America’s independence, among the first acts of the new Congress in 1789 was an Act
to encourage the use of American vessels for trading between the States, followed shortly by
the Navigation Act of 1807. Over the ensuing years the United States adopted the principles that
have guided our maritime industry into the 21st Century —
• Reserve domestic commerce to vessels built, owned, and crewed by American citizens as a vital
part of our national domestic transportation system and our national and economic security;
• Maintain a shipbuilding and repair industrial base sufficient to provide modern vessels for the
domestic fleet and new construction and repair capabilities for modern naval vessels in peace
and war; and
• Ensure a modern commercial fleet operating in the foreign trades capable of meeting national
defense shipping requirements and to maintain a presence in international commercial
shipping.
There are four major legislative and interdependent struts supporting the U.S.-flag
maritime industry:
1. The Jones Act requires that trade between two or more contiguous American ports must
be conducted by U.S.- owned carrier companies who employ U.S. mariners aboard U.S.-built
vessels. The Jones Act keeps American shipping companies, shipyards, mariners, maritime
academies and thousands of Maritime Americans working.
2. Maritime Security Program (MSP) is a $186 million program that provides expense offset
to a 60-vessel commercial fleet of container ships, roll-on, roll-off vessels and tankers that
carry military cargo to and from the war theaters. This fleet has carried more than 70% of the
cargoes supporting U.S. troops and Coalition forces in Afghanistan and Iraq since 2005.
3.Cargo Preference Laws require that a percentage of government cargo must be carried on
U.S.-flag vessels. This cargo includes a wide range of home-grown or home-manufactured
products from humanitarian aid to large construction machinery all over the world and is the
lifeblood of the U.S.-flag fleet.
4. The Tonnage Tax is a tax regime passed by Congress in 2004 intended to level the playing
field for U.S.-flag operators competing in foreign trades.
Together, these government programs assure continuing investment in the U.S.-flag and
guarantee that commercial sealift capability will be robust, efficient and affordable for national,
economic, and homeland security.
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America’s Maritime Industry
The foundation of American seapower.
America’s Maritime Industry Today
The American Maritime Industry today is unique among the maritime nations of the world in its
scope, magnitude, and diversity. Consider that the industry includes over 40,000 vessels that when
connected with U.S. trucks and railroads gives the United States a strong domestic transportation
system serving as a facilitator for international trade.
• Modern, oceangoing ships, through ties to international
carriers, link the U.S. economy to the global economy,
maintain a U.S. presence in international trade,
transport humanitarian aid to those in need, and
support U.S. military forces worldwide;
• Passenger vessels ranging from ferries in daily
commuter services to cruise ships which together
annually carry tens of millions of Americans to work
and on vacation;
• Thousands of towboats and barges operating on
the Mississippi and Ohio River systems that play an
essential role in transporting agricultural products from
the American Midwest to ports for export;
• Ships and barges of all descriptions operating in
coastwise trade transporting bulk commodities along
our coasts and between the continental U.S. and Alaska,
Hawaii, and Puerto Rico;
• Great Lakes vessels moving bulk commodities three
times more efficiently than rail and 10 times more
efficiently than trucks, which are the lifeblood of the
U.S. steel industry in the region and that give industries
in the region a competitive edge; 1
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America’s Maritime Industry
The foundation of American seapower.
• Ports in every state ranging from those among the
world’s largest that provides the gateways to the
global economy through which flow U.S. imports
and exports, and smaller regional ports which serve
as hubs for domestic waterborne commerce;
Tugs and related vessels of every description providing towing and
• Tugs and related vessels of every description
harbor services in every port in the nation;
providing towing and harbor services in every
port in the nation;
Vessels providing offshore support to the oil industry in the U.S. Gulf
• Vessels providing offshore support to the oil industry
and off our coasts, ranging from exploration and drilling, support for oil
in the U.S. Gulf and off our coasts, ranging from
production facilities, and transportation of supplies, personnel, and
exploration and drilling, support for oil production
crude oil to U.S. coasts;
facilities, and transportation of supplies, personnel,
and crude oil to U.S. coasts;
• A diverse dredging industry which not only helps
to maintain and improve U.S. ports and waterways
and helps replenish U.S. beaches from erosion,
and which also provides services worldwide; and
• A shipbuilding and repair industry ranging from
shipyards building and maintaining the largest
and best naval vessels in the world to medium and
smaller yards which build and maintain the over
40,000 vessels comprising the domestic fleet.
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America’s Maritime Industry
The foundation of American seapower.
Innovation in America’s
Maritime Industry
Throughout its history, the American Maritime Industry has been characterized by its innovation
and its productivity. Possibly foremost among the many innovations flowing from the American
Maritime Industry has been the introduction of containerization.
The idea of using some type of shipping
container was not completely novel. Boxes
similar to modern containers had been
used for combined rail- and horse-drawn
transport in England as early as 1792. The
U.S. government used small standardsized containers during the Second World
War, which proved a means of quickly and
efficiently unloading and distributing supplies.
However, in 1955, Malcom P. McLean, a
trucking entrepreneur from North Carolina,
bought a steamship company with the idea of transporting entire truck trailers with their cargo
still inside. He realized it would be much simpler and quicker to have one container that could be
lifted from a vehicle directly on to a ship without first having to unload its contents.
This simplified the whole logistical process and, eventually, implementing this idea led to a
revolution in cargo transportation and international trade over the next 50 years. His ideas
were based on the theory that efficiency could be vastly improved through a system of
“intermodalism,” in which the same container, with the same cargo, can be transported with
minimum interruption via different transport modes during its journey. Containers could be
moved seamlessly between ships, trucks, and trains.
Almost from the first voyage, use of this
method of transport for goods grew steadily
and in just five decades, containerships would
carry about 60% of the value of goods shipped
via sea. It is certainly no exaggeration that
the container revolutionized ocean freight
transportation and made possible the global
economy. In 2011, the Port of Los Angeles set
a record by shipping over 2 million export
containers alone, the first U.S. port to do
so, and with its neighboring Port of Long
Beach handled over 14 million containers in
international and domestic commerce.
Today containerization also plays a role in the shipment of supplies and equipment to U.S.
military forces worldwide. Since 2009, 60% of the cargoes moving to U.S. troops in Iraq and
Afghanistan have been containerized, and U.S.-flag containerships have transported 75% of all
equipment and supplies shipped to those countries.
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America’s Maritime Industry
The foundation of American seapower.
The introduction of River Flotilla
towing systems made possible barge
tows of from 35-55 barges. The tow
shown has the cargo carrying capacity
of a 27,000-dwt freighter.
The introduction of the 1,000-ft long
self-unloading bulk ship on the Great
Lakes increased vessel productivity by a
factor of four. Self-unloading eliminated
the need for costly and time-consuming
cargo discharge and specialized
onshore terminals. Virtually any level
land within reach of the cargo boom
became a potential terminal.
Productivity
Such innovation has enabled the maritime industry in America to be among the country’s most
productive. For example, during the period 1965-95 the maritime industry outperformed American
businesses generally based on average annual rate of productivity gain.
A key factor in achieving these productivity increases has been increased vessel and crewmember
productivity resulting from the introduction of containerization in the U.S.-flag offshore and foreign
trades. As illustrated below, a modern containership has four times the annual cargo delivery
capability as a first generation containership, resulting both in increased vessel productivity and
productivity per individual crew member. If the same comparison is made to a post-WW II general
cargo ship, the productivity increase would be approximately 16 times greater.
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America’s Maritime Industry
The foundation of American seapower.
Environmentally Friendly
Mode of Transportation
Marine transportation is widely recognized as the most environmentally friendly compared to
other modes of freight transportation. In terms of fuel efficiency, for example, waterborne barge
transportation is 39% more fuel efficient than rail and 370% more efficient than trucks. 2
The same holds true in terms of
emissions. Based on ton miles
traveled per ton of greenhouse
gases (GHG) released, water
transportation is similarly 39% less
damaging to the atmosphere than
rail and 370% less damaging than
trucks.
The maritime industry is also
continually seeking ways to
further reduce its environmental
impact. Industry initiatives to
help protect our marine and
ocean environments include the
introduction of low-sulfur fuels,
shutting down main engines in part
to reduce emissions, and working
with government officials to
establish best navigation routes to
minimize environmental impact.
Ton Miles Per Gallon of Fuel
800
576
600
400
200
413
155
0
Truck
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Rail
Inland
Towing
America’s Maritime Industry
The foundation of American seapower.
Economic Contribution:
International Trade
The Maritime Industry in America contributes to our national economy and economic
wellbeing both through international trade — approximately 28% of our economy
depends on imports or exports— and by virtue of the millions of jobs it creates or sustains
domestically both within the industry itself and through its total value contribution to
the economy.
International trade is a critical component of the U.S. economy. According to the
Organisation for Economic Co-operation and Development (OECD), the trade-to-GDP
ratio for the U.S. increased from about 20.5% in 1990 to over 28% in 2006. The World Bank
predicts that this ratio will rise to 35% by 2020, showing that trade will become an even
more important component of the U.S. economy. Trade will not only grow in absolute
terms, it will also increase as a share of GDP and thus as a contributor to growth in U.S. jobs
and wealth. If current trends continue, imports and exports will comprise almost 55% of
GDP by 2038. In other words, trade will grow twice as fast as the U.S. economy as a whole.3
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America’s Maritime Industry
The foundation of American seapower.
With 95% of our foreign trade moving by ship, the role of maritime transportation will continue
to increase. In 2009, for example, 6,996 oceangoing vessels made 55,560 calls at U.S. ports
transporting 1.2 billion metric tons of U.S. imports and exports with a combined value in excess
of 1 trillion U.S. dollars. On average, that equates to over 180 oceangoing vessels calling at U.S.
ports every day. 4
Maritime Share of U.S. Trade
Millions of Metric Tons
It is projected that the maritime
share of U.S. trade as measured
by TEU’s (20-foot Container
Equivalent Units) will double by
2023 to about 45 million TEU’s and
increase to 75 million TEU’s (about
2.4 billion tons) by 2038. Trade by
sea will grow even faster by value,
rising from about $1.8 trillion in
2008 and to about $10.5 trillion in
2038. Thus, over the next 30 years,
trade will increase by an average
annual growth rate of 1.9% by
volume and 6.4% by nominal
value. These growth rates reveal
that the U.S. will be trading in
goods of higher value per ton and
highlight yet again the increasing
importance of maritime trade to
the U.S. economy and national
wealth creation. 5
Overall, when trade-dependent
jobs are included in the analysis,
it is estimated that maritime
industry related employment
represents approximately 13
million U.S. jobs.6
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America’s Maritime Industry
The foundation of American seapower.
Domestic Economic Contribution
The maritime industry is not just about the shipment of goods or transporting passengers.
Beginning with the shipyards that build and repair the vessels operating in our domestic
transportation system, the industry provides or supports jobs throughout the economy.
The maritime industry annually accounts for:
• 2.56 billion short tons of cargo, 40% of which is domestic
• 100 million passengers on ferries and excursion boats
• 100,000 shipyard jobs for skilled craftsmen
• 2.5 million domestic jobs indirectly created by shipyards
• $29 billion in wages
• $11 billion in taxes
• $100 billion in annual economic output
In the Great Lakes region, economic data shows that more than 1.5 million jobs in the eight
states bordering on the Lakes are directly connected to waterborne trade, generating $62 billion
in wages in that region alone. 7 Other studies by maritime industry related trade associations
estimate that the industry itself employs 1.6 million Americans overall in water transportation
and related sectors including port services and drayage and shipbuilding and repair. 8
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America’s Maritime Industry
The foundation of American seapower.
This would equate to more than $105
billion in direct economic output to
the U.S. economy, in addition to the
maritime industry’s role as a key enabler
and component of the approximately $3
trillion in economic output of American
importers and exporters.
Waterborne shipping is an extremely
cost effective mode of moving cargo
in the domestic economy compared to
other modes. In 2001, average freight
revenue per ton-mile for barges was less
than half the next cheapest alternative
(oil pipelines), less than one-third that of
Class I railroads, and less than 3% of the
cost of shipping by truck.
Historically the cost of shipping by water
for domestic cargoes has been going
down, not up. While the Consumer Price
Index increased by 34% over the period
1990-2001, revenues per ton mile for
barge commerce declined by 5% in
nominal terms, a real reduction in charges
to barge customers—including farmers
in the Middle West and Plains States—
of 29%. In contrast, over the same
period the cost of shipping by truck
increased by 9%.9
The economic contributions of the
American Maritime Industry to the
domestic economy go beyond direct
payments and providing transportation.
Shipbuilders purchase steel and other
products from domestic companies to
build and repair ships. Marine suppliers of
all types sell products and services to the
industry, with added employment and tax
revenue benefits.
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America’s Maritime Industry
The foundation of American seapower.
Supporting Our National Defense
Since the earliest days of our history, the
American Maritime Industry and Merchant
Marine have played vital roles in our national
defense. Through two World Wars and
numerous conflicts before and since, American
merchant ships and their civilian mariner crews
have deployed and sustained American Armed
Forces truly serving as the Fourth Arm of our
National Defense.
“We simply cannot, as a nation,
fight the fight without the
partnership of the commercial
maritime industry.”
General John W. Handy, USAF, Commander, U.S.
Transportation Command, Before House Armed
Services Committee (2002)
The Maritime industry’s contributions to national defense go beyond the vital role of deploying
and sustaining our troops, for without its contribution to the maritime sector of our national
defense industrial base, the United States would not be the seapower it has been since the Second
World War and must continue to be in the future.
The United States-flag commercial shipping industry provides the U.S. military with a highly
effective partner in the provision of military sealift services around the globe by delivering
cost-effective service at a high level of performance quality and dependability. Through the
Maritime Security Program (MSP) and Voluntary Intermodal Sealift Agreement (VISA), the U.S.-flag
commercial fleet provides vessels, crews, and worldwide intermodal facilities for defense use—
wherever and whenever needed.
Foundation for National Security Sealift
The Maritime Security Fleet (MSF), MSP and VISA programs serve as the foundation for U.S. national
security sealift by—
• Maximizing the capability, readiness and reliability of U.S. strategic sealift through immediate assured
access to intermodal capacity under contingency contracts with each of the individual operators;
• Permitting immediate expansion of sealift capacity in an emergency as well as a capacity reserve
(“insurance”) consisting of un-tapped U.S.-flag capacity and the foreign-flag capacity of VISA
participants committed under VISA;
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America’s Maritime Industry
The foundation of American seapower.
• Ensuring the availability of trained, STCW (Standards of Training Certification and Watchkeeping)
certified mariners to crew U.S. Government organic sealift assets;
• Being less costly by orders of magnitude than to acquire, operate, and maintain U.S. Governmentowned assets and intermodal systems for the sealift mission, thus performing the military logistics
mission in a significantly more cost effective manner; and
• Ensuring U.S. military cargoes access to a global
intermodal system that is continuously modernized by
its commercial owners, without government assistance
(which in any respect is beyond the capability of the
U.S. government or military to replicate).
Operations Enduring Freedom and Iraqi
Freedom/New Dawn
The extended and extensive sealift operations associated
with Operations Enduring Freedom (OEF) in Afghanistan
and Operation Iraqi Freedom/New Dawn (OIF) in Iraq
have proven once again the benefits to the U.S. military
of a strong, U.S.-flag commercial fleet and the value
realized from MSP and VISA through which commercial
capability is made available to the U.S. military.
As a result, the share of dry cargoes delivered to U.S. and
Coalition Forces in Iraq and Afghanistan from 2002-08 by U.S.-flag commercial vessels increased
from the 21 percent transported during the Persian Gulf Conflict in 1990-91 to 57 percent, while
reliance on foreign-flag vessels dropped from 23 percent in 1990-91 to only 3 percent.
The trend towards increased reliance on U.S.-flag commercial sealift to deploy and sustain
U.S. and Coalition Forces in combat continued even as the focus of combat operations shifted
from Iraq to Afghanistan beginning in 2008. Since 2008 the share of dry cargoes moved by the
U.S.-flag commercial vessels has increased to 95 percent with the remaining 5 percent carried by
U.S. Government-owned or controlled vessels.
Whether by U.S.-flag vessels in commercial service or by U.S. government or chartered U.S.-flag
vessels, since 2004 virtually 100% of all equipment and supplies for American forces in Iraq and
Afghanistan has been transported by U.S.-flag ships manned by U.S. citizen seafarers.
Most Cost Effective Means of Providing Sealift
Few defense programs provide as much “bang for the buck” as MSP. The cost to the government of
acquiring sealift capacity through MSP is less than 10% of what it would have cost the government to
acquire, operate, and maintain equivalent sealift capabilities. In addition, because the MSF is capitalized
and re-capitalized solely through the private investment of the owners and operators of enrolled
vessels, the U.S. Government has realized almost $70 billion in capitalization and re-capitalization cost
avoidance savings for the vessels and intermodal infrastructure capabilities provided through the MSP/
VISA. Total outlays in MSP payments for vessels enrolled in the program amount to only 2.5% of the
benefit realized in investment cost avoidance alone. As retired Gen. Duncan McNabb, Commander, U.S.
Transportation Command, USAF, recently stated, “[t]he partnerships with air and sealift companies is a
very cheap way to maintain the military’s capabilities for war.” 10
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America’s Maritime Industry
The foundation of American seapower.
Defense Industrial Base: Shipbuilding
The American Maritime Industry also
contributes to our national defense
No nation can support and sustain
by sustaining the shipbuilding and
a capable and sizeable Navy and
repair sector of our national defense
merchant marine without a strong
industrial base upon which our standing
and sustaining industrial base.
as a seapower is based. History has
Navy League of the United States
proven that without a strong maritime
Maritime Policy 2011-12
infrastructure —shipyards, suppliers,
and seafarers— no country can hope to
build and support a Navy of sufficient size and capability to protect its interests on a global basis.
Both our commercial and naval fleets rely on U.S. shipyards and their numerous industrial vendors
for building and repairs. The U.S. commercial shipbuilding and repair industry also impacts our
national economy by adding billions of dollars to U.S. economic output annually.
In 2004, there were 89 shipyards in the major shipbuilding and repair base of the United States,
defined by the Maritime Administration as including those shipyards capable of building,
repairing, or providing topside repairs for ships 122 meters (400 feet) in length and over. This
includes six large shipyards that build large ships for the U.S. Navy. Based on U.S. Coast Guard
vessel registration data for 2008, in that year U.S. shipyards delivered 13 large deep-draft vessels
including naval ships, merchant ships, and drilling rigs; 58 offshore service vessels; 142 tugs and
towboats, 51 passenger vessels greater than 50 feet in length; 9 commercial fishing vessels; 240
other self- propelled vessels; 23 mega-yachts; 10 oceangoing barges; and 224 tank barges under
5,000 GT. 11
Since the mid 1990’s, the industry has been experiencing a period of modernization and renewal
that is largely market-driven, backed by long-term customer commitments. Over the six-year
period from 2000-05, a total of $2.336 billion was invested in the industry, while in 2006, capital
investments in the U.S. shipbuilding and repair industry amounted to $270 million.12
The state of the industrial base that services this nation’s Sea Services is of great concern to
the U.S. Navy. Even a modest increase in oceangoing commercial shipbuilding would give a
substantial boost to our shipyards and marine vendors. Shipyard facilities at the larger shipyards
in the United States are capable of constructing merchant ships as well as warships, but often
cannot match the output of shipyards in Europe and Asia. On the other hand, U.S. yards construct
and equip the best warships, aircraft carriers and submarines in the world. They are unmatched in
capability, but must maintain that lead. 13
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America’s Maritime Industry
The foundation of American seapower.
Defense Industrial Base:
Seafarers & Shipyard Labor
Maintaining a strong industrial base supporting
the seagoing elements of the U.S. Merchant Marine
and U.S. Navy includes having the trained and
experienced manpower necessary to crew the vessels
comprising the commercial merchant fleet and the
skilled shipyard workers needed to build and repair
both Navy and commercial ships. Thus seafarers and
shipyard labor are key elements in maintaining U.S.
maritime superiority.
Seafarers
To meet national defense sealift requirements,
the U.S. Government requires a pool of trained,
experienced seafarers to crew organic vessels
activated from reserve or reduced operating status.
The U.S.-flag commercial fleet provides that mariner pool.
U.S.-Flag Fleet
A strong national maritime industry also requires an education and training base to provide the
skills and training necessary to develop and maintain a cadre of trained personnel for vessel
operation and management.
The key elements of the maritime education and training base in the United States for both
commercial and military seagoing officers include the three Federal academies (U.S. Naval
Academy, U.S. Coast Guard Academy, and U.S. Merchant Marine Academy) and six State
academies (Maine, Massachusetts, Fort Schyler (NY), Great Lakes (MI), Texas A&M, and California).
Shipyards
The facilities in the largest private shipyards in the United States are more than adequate to
produce the ships currently assigned. There also is some limited surge capacity in existence, but
personnel and equipment for the ships are the limiting factors. Our naval shipyards have suffered
for decades with little to no facility upgrades.
The labor pool possessing the critical skills necessary to produce our equipment and systems
and construct our warships is aging, with key personnel leaving and not being replaced in kind.
Ship construction and related industries are not viewed by the younger generation as the place
to be in today’s markets. The key element to achieving on-time and on-price production for our
technically advanced systems and ships is a trained and dedicated work force. These shortages
can result in all too common poor performance experienced in shipyards and manufacturing
plants. The only solution is additional training and education at all levels. Entry-level training
alone is not sufficient.
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America’s Maritime Industry
The foundation of American seapower.
Homeland Security
The maritime industry in America contributes to our homeland security by:
• Protecting critical national infrastructure;
• Serving as the “eyes and ears” of Maritime Domain Awareness; and
• Its readiness to mobilize to protect lives and property when disaster strikes.
Critical National Infrastructure
Domestic transportation is among the eight critical national infrastructures identified as vital
to our national economy. Historically the United States has imposed heightened requirements
over domestic industries constituting these infrastructures. By requiring that ships operating in
domestic transportation and marine services be owned and operated by American citizens, the
Maritime Industry helps ensure national control over the marine portion of that infrastructure.
Maritime Domain Awareness
The maritime industry provides the first line of defense for reporting suspicious activity observed
around the nation and the world during the course of normal commercial maritime operations.
Maritime Domain Awareness refers to collaborative information collection and sharing between
the maritime industry, federal, state, and local authorities, and the general public. America’s
coasts, rivers, bridges, tunnels, ports, ships, military bases, and waterside industries are all
potential targets. Though our waterway security is better than ever, we have more than 95,000
miles of coastline, 360 ports, 3,700 cargo and passenger terminals, and over 290,000 square miles
of water to protect.
The purpose of America’s Waterway Watch is to use the “eyes and ears” of waterfront users, the
thousands of crew members on vessels in domestic commerce, the 70 million U.S. recreational
boaters, marina operators and other waterfront concessionaires, to detect and report suspicious
activity that may be terrorist-related.
Disaster Response
America’s maritime industry has repeatedly mobilized in the face of disaster to protect lives
and property. In addition to the massive boatlift during the aftermath of the World Trade
Center attacks (discussed earlier in this report) the industry responded urgently to the massive
Deepwater Horizon oil spill in the Gulf of Mexico.
Gulf Oil Spill (2010)
Following the Deepwater Horizon fire and sinking in the Gulf of Mexico, the American maritime
industry again responded to help protect lives and property. Literally thousands of American
ships and vessels of all types ranging from converted fishing trawlers and recreational craft to
large Offshore Support Vessels were mobilized to fight the initial disaster, to stem the flow of oil
from the well, to protect beaches and wetlands from advancing oil, and ultimately to recover
tons of oil residue from the waters of the Gulf and along its shorelines.
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America’s Maritime Industry
The foundation of American seapower.
The Past As Prologue
Before there were highways and rail lines
along our coasts, vessels of all sizes were the
only means of transportation for freight and
passengers. As increasing congestion on
America’s highways and rail systems along
those coasts threatens economic growth,
our marine highways offer an under-utilized
transportation asset that could help our
economy to continue to grow.
Only a truly seamless,
integrated, multimodal
transportation system will meet
the nation’s growing needs.
Navy League of the United States
Maritime Policy 2011-12
As U.S. international trade increases it will result in higher demand for associated high
service infrastructure such as container handling capacity at ports, and seamless multimodal connections to highways and railways and increases demand for inland transportation
infrastructure such as highways and railroads.
The role of the Maritime American in domestic commerce can be expanded much further
with the advent of the Marine Highway Initiative (MHI). The MHI is just one example of how
waterborne transportation must be a solution and work in conjunction with other modes
to ensure the free-flow of domestic and foreign commerce in the United States. Waterborne
transport can alleviate congestion along the nation’s highways. It can add to the efficiency and
flexibility of global and domestic supply chains, as seaborne shipping does not require fixed
infrastructure aside from ports. Since waterborne freight transportation is a far more fuel-efficient
mode, it is also part of the solution to alleviating environmental problems and dependence on
foreign oil.
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America’s Maritime Industry
The foundation of American seapower.
Governments at the federal, state, and local level, regional transportation authorities, and
the Maritime Industry are working collectively through the America’s Marine Highway (AMH)
initiative to better utilize the great natural “highways” available on our rivers, coasts, and the
Great Lakes to meet growing transportation needs.
Sea Grant Michigan, “Great Lakes Jobs: Vital to Our Economy”, (2011).
1
Texas Transportation Institute, “A Modal Comparison of Domestic Freight Transportation Effects on the
General Public,” (As Amended 2009).
2
IHS Global Insight, “An Evaluation of Maritime Policy in Meeting the Commercial and Security Needs of the
United States” (2009) at 6.
3
4
Maritime Administration, “U.S. Water Transportation Statistical Snapshot”, Washington, DC (2011).
5
IHS Global Insight, ibid., at 10-12.
Maritime Administration, “A Vision for the 21st Century,” Washington, DC (2007) at 5.
6
American Maritime Partnership (AMP) website under “Facts and Figures”.
7
See, e.g., Martin Study for Association of American Port Authorities, American Waterways Operators, American
Trucking Associations, Shipbuilders Council of America, and Maritime Administration Statistical Snapshot.
8
Price Waterhouse Coopers, “Contribution of the American Domestic Maritime Industry to the U.S. Economy,” (2009).
9
American Forces Press Service, “Commander Discusses ‘Jewell in the Crown’ of America’s Military”,
October 28, 2008.
10
IHS Global Insight, ibid., at 24 updated to 2009 by Maritime Administration, “U.S. Water Transportation
Statistical Snapshot”, Washington, DC (2011).
11
Shipbuilders Council of America website.
12
IHS Global Insight, ibid., at 24.
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