The rebuilding of the US merchant marine was at the centre of discussions this week in New York, where Federal Maritime Commission (FMC) Chair Laura DiBella and the US Maritime Administration’s (MARAD) Sydney Plante exchanged views on the future of the country’s maritime sector.
The discussion took place during Capital Link’s annual Maritime Forum in New York, with Plante serving as Acting Associate Administrator for Strategic Engagement at MARAD.
The FMC is adopting a more assertive approach toward the international liner carriers it regulates. DiBella made clear that the commission also wants to play a supporting role alongside MARAD, which has a pivotal responsibility in managing US-flagged merchant vessels.
“We’ve been very busy…we’ve had many investigations…many enforcement actions that are coming underway…the FMC’s going to be flexing its muscles pretty big,” DiBella said.
She explained that the commission is taking a broader and more proactive approach to the maritime community, with a particular focus on helping streamline operations and making the sector more competitive.
Plante, in her opening remarks, underlined the importance the current administration is placing on maritime policy.
“This is the first Administration that cares about maritime, probably since the time of President Nixon,” she said.
Dan Tadros of the American Club, who moderated the session, described the initiative as a bipartisan effort.
“This is a bi-partisan effort, which makes it really critical…I am hoping that this means we actually have a future rebuilding the US merchant marine,” he said.
Rebuilding the industrial base
The ambitions outlined during the discussion are extensive. Responding to Tadros, Plante said MARAD is moving toward a broader industrial strategy aimed at rebuilding the foundations required to sustain the US maritime sector.
“We are definitely moving in the right direction….we want to rebuild the industrial base,” she said.
Plante added that MARAD is explaining the strategy to Congress and stressed that the effort should no longer be viewed simply through the lens of naval shipbuilding.
“This is entirely different…it’s about creating an entire ecosystem,” she said.
That ecosystem is central to the Maritime Action Plan (MAP), which Plante described as a framework designed to give the industry the conditions needed to sustain itself over the long term.
“It establishes the ecosystem for the industry to sustain itself. Congress is finally on our side, the Administration is on our side, so let’s continue this momentum,” she said.
DiBella also stressed that rebuilding the industry will require a multi-year commitment rather than a short-term programme.
“It doesn’t stop with this Administration,” she said.
Tadros reinforced that point, describing continuity beyond the current administration as one of the most important messages emerging from the discussion.
“That’s the most important message here…this is going to carry on,” he said, adding that allies, shipowners and charterers could potentially have an important role to play in supporting the effort.
“Looking out there to all of our allies, shipowners and charterers…hopefully they will be interested in helping us,” Tadros said.
Cargo and workforce development
Plante also provided more detail on what rebuilding the industrial base could involve. MARAD is looking at the entire industrial base with the objective of achieving cheaper and more efficient production.
That approach includes both cargo and workforce development, she said.
Financing is another area under review. Plante highlighted ongoing efforts to streamline MARAD’s Title XI ship financing programme, under which loans are guaranteed.
The objective is to reduce application turnaround times from more than a year to 90 days.
“We also have the Capital Construction Fund, we’re looking at different financing methods,” Plante said.
Linking US cargo to US-flag ships
The discussion also turned to the question of cargo generation and how the movement of US cargo could contribute to rebuilding the domestic merchant fleet.
Tadros asked the two panellists about the issue, prompting DiBella to point to a possible role for the FMC through enforcement actions that could potentially connect the movement of US cargoes with US-flag ships.
“That’s a role that we’d be glad to take on, something that should be happening already but isn’t,” DiBella said.
She also identified incentives encouraging US-flag cargoes to use US-flag ships as another area the FMC intends to examine more closely in the future.
DiBella linked this approach to the central strategy of Maritime Administrator Captain Stephen Carmel, which she described simply as being focused on “cargo”.
The discussion in New York therefore highlighted a broader US maritime strategy combining regulatory enforcement, industrial-base development, financing, cargo generation and workforce development, with officials stressing that rebuilding the merchant marine will require sustained momentum over several years.
