Let’s Restore The Entire Maritime System
At the time of this writing, a cease-fire with Iran and some version of a re-opening of the Strait of Hormuz continues. If it holds it will surely be welcome news for many, as stranded mariners will be free to go home, and millions of tons of oil and gas bottled up in the Persian Gulf will be released onto world markets.
One of the responses to the conflict was to issue a 60-day waiver of the Jones Act. That waiver remains in force until May 17. In this industry patriotism is commonplace. We imagine most of our readers are very willing to sacrifice in times when national or economic security is threatened. The question though is if it is helpful and what do we risk? We have seen no evidence that this waiver did or will do anything to address the causes of the oil price disruptions. Maybe the waiver was targeting military needs and if so then maybe there is justification as long it is temporary and not abused for other purposes. But the risk extends all the way up the river and we are confident that the Jones Act protects our interests in shipbuilding and growing the merchant marine. As the dust settles and reliable information becomes available, this will hopefully become clearer, and we trust that the message will be conveyed by our advocacy groups.
Meanwhile, The White House released its budget request, which curtails significant spending on new projects but fails to give the USCOE what industry advocates feel is needed for maintenance. The Waterways Council Inc., said, “WCI is disappointed in the lack of Operations and Maintenance funding for Corps lock projects. At a time when supply chains remain extremely critical, this budget chose to not prioritize the reliability of inland navigation.”
We are seeing temporary closures of locks and dams on the Illinois River and the Inner Harbor Navigation Canal for scheduled maintenance and the effects of fluctuations in the river. We have recently witnessed what a disruption of an important waterway can do to the world economy, whether it’s the Strait of Hormuz, Red Sea or Suez Canal. Neglect of America’s locks and dams could create a major disruption that is felt very close to home and by every citizen.
The SHIPS for America Act is under development in Congress, with strong bipartisan support. We wholeheartedly support the revived focus on the maritime sector via that effort and others. It could be the beginning a historic transformation and an important legacy of this administration.
There are very exciting efforts and important maritime related news on a global scale that is being delivered at a rapid pace. More focus on maritime is good, we think. But it is starting to feel like our inland rivers, canals and lakes are being overlooked and being threatened due to blue water shipping and military goals. Maybe the phrase is don’t throw the baby out with the bathwater. Or don’t bite the hand that feeds you. Either might apply here. We understand the urgency of restoring and expanding military shipbuilding quickly and the desire to lessen pressure resulting from Iran holding the Strait of Hormuz captive. But our waterways are a gem and geopolitical advantage that authors have cited as major contributor to our Superpower status. It is too precious to neglect, and too valuable to unnecessarily suffer due to the needs of other maritime or oil and gas related interests. It is not the time to let a huge geopolitical advantage and important economic engine falter.
We hope that as tensions ease, both sides of the aisle will be able to give our waterways the attention they deserve.
