All Hail the First of Hopefully Many Maritime Focused Executive Orders

time is of the essence

Late Wednesday afternoon, the hard work and drive of a lot of people with the right focus on our nation’s maritime security bore fruit. We have the first of what I hope are many Executive Orders (EO) that focus on our long-neglected maritime industry—a cornerstone of our national security.

It is a great and wonderful thing to see. An EO titled, Restoring American’s Maritime Dominance.

Read the whole thing at the link. In the EO, you will find a lot of economic, industrial, and trade policy that I won’t pull out below. Not because they are not important, but simply because they did not pop out to me personally.

Here, on the OG Blog and for a decade-and-a-half with my co-host Mark Tempest on the Midrats Podcast, we have discussed most of the issues in this EO with some of the best minds in the business. In a collective voice, we have called for action. For so long, no action of significance was ever taken. Now we have it. Simply a superb opening:

Section 1. Purpose. The commercial shipbuilding capacity and maritime workforce of the United States has been weakened by decades of Government neglect, leading to the decline of a once strong industrial base while simultaneously empowering our adversaries and eroding United States national security. Both our allies and our strategic competitors produce ships for a fraction of the cost needed in the United States. Recent data shows that the United States constructs less than one percent of commercial ships globally, while the People's Republic of China (PRC) is responsible for producing approximately half. Rectifying these issues requires a comprehensive approach that includes securing consistent, predictable, and durable Federal funding, making United States-flagged and built vessels commercially competitive in international commerce, rebuilding America's maritime manufacturing capabilities (the Maritime Industrial Base), and expanding and strengthening the recruitment, training, and retention of the relevant workforce.

Looking for a clear “Ref. A:” that the bureaucracy needs to secure a line to? Sec. 2 will do:

Sec. 2. Policy. It is the policy of the United States to revitalize and rebuild domestic maritime industries and workforce to promote national security and economic prosperity.

About as clear as can be. The next bit had me thinking:

Sec. 3. Maritime Action Plan. (a) Within 210 days of the date of this order, the Assistant to the President for National Security Affairs (APNSA), in coordination with the Secretary of State, the Secretary of Defense, the Secretary of Commerce, the Secretary of Labor, the Secretary of Transportation, the Secretary of Homeland Security, the United States Trade 2 Representative (USTR), and the heads of executive departments and agencies (agencies) the APNSA deems appropriate, shall submit a Maritime Action Plan (MAP) to the President, through the APNSA and the Director of the Office of Management and Budget (OMB Director) to achieve the policy set forth in this order.

210 days?

Huh. That gets us to where, mid-November? Right before Thanksgiving. Harmph.

You know what would be great? As the Pentagon’s sloth and slow-rolling is largely responsible for getting us here, and in maritime matters the Legislative Branch has been equally slothful—the most recent disgrace being the rolling-balk of the National Commission on the Future of the Navy—what if the Executive Branch showed everyone what the new concept of time means by submitting the MAP a month early, in mid-October? That would not only put down a performance marker of superior staff work for everyone else to benchmark, it also will help prevent the story from being lost in the Thanksgiving to New Years holiday distractions.

(c) The MAP shall, to the extent permissible and consistent with applicable law, including the Buy American Act (41 U.S.C. 8301–8305), reflect actions taken pursuant to sections 4 through 21 of this order.

This reminds me: EOs, while great and needed, are only a band-aid waiting for the more permanent fix that can only be done through legislative action.

Congress: Get to work.

Sec. 4. Ensure the Security and Resilience of the Maritime Industrial Base. Within 180 days of the date of this order, the Secretary of Defense, in coordination with the Secretary of Commerce, the Secretary of Transportation, and the Secretary of Homeland Security, shall provide to the APNSA and the OMB Director for inclusion in the MAP an assessment of options both for the use of available authorities and resources, such as Defense Production Act Title III authorities, and for the use of private capital to the maximum extent possible to invest in and expand the Maritime Industrial Base including, but not limited to, investment and expansion of commercial and defense shipbuilding capabilities, component supply chains, ship repair and marine transportation capabilities, port infrastructure, and the adjacent workforce. The Secretary of Defense shall pursue using the Office of Strategic Capital loan program to improve the shipbuilding industrial base. As part of their assessment, the Secretary of Commerce, the Secretary of Transportation, and the Secretary of Homeland Security shall:

Let’s make that 150 days:

(a) identify key maritime components in the supply chain…

(b) ensure that their recommendations of public and private investments are made according to a clear metric,…

…propose the following actions: (i) tariffs on ship-to-shore cranes manufactured, assembled, or made using components of PRC origin, or manufactured anywhere in the world by a company owned, controlled, or substantially influenced by a PRC national; and (ii) tariffs on other cargo handling equipment.

Solid.

There are a few items here that just add an extra luster to the whole effort: leveraging the exceptional capabilities of our friends and allies:

Sec. 8. Reduce Dependence on Adversaries through Allies and Partners. Within 90 days of the date of this order, the Secretary of Commerce, in consultation with the Assistant to the President for Economic Policy, shall recommend to the APNSA and the OMB Director for inclusion in the MAP all available incentives to help shipbuilders domiciled in allied nations partner to undertake capital investment in the United States to help strengthen the shipbuilding capacity of the United States.

…

…deliver a legislative proposal to the APNSA and the OMB Director that:

(i) reflects the recommendations of the report required under this section;

(ii) establishes national maritime scholarships to send promising maritime experts abroad to learn cutting edge techniques and subjects, such as innovative maritime logistics, clean fuels and advanced nuclear energy, human-machine teaming, and additive manufacturing and other advanced technologies; and (

iii) offers scholarships to maritime experts from allied countries to teach at United States institutions.

Many of our friends and allies over the last few decades did not allow their maritime industries to die away due to malice and poor stewardship. We can get up on step much faster by leveraging where they are today and help our efforts orientate towards where industry best practices are pointing to in the future.

As in many places inside our national lifelines, we are often our own worst enemy with bad regulations and malicious, self-serving bureaucratic obstacles.

Sec. 11. Establish Maritime Prosperity Zones. Within 90 days of the date of this order, the Secretary of Commerce, in coordination with the Secretary of the Treasury, the Secretary of Transportation, and the Secretary of Homeland Security, shall deliver a plan to the President through the APNSA for inclusion in the MAP that identifies opportunities to incentivize and facilitate domestic and allied investment in United States maritime industries and waterfront communities through establishment of maritime prosperity zones.

…

(b) include stipulations for appropriate regulatory relief in the establishment of such zones; and (c) provide for zones that are outside of traditional coastal shipbuilding and ship repair centers and are geographically diverse, including river regions as well as the Great Lakes.

Perfect. We have so many interior opportunities we can leverage.

Speaking of rules and regulations we control: People.

Sec. 13. Expand Mariner Training and Education. Within 90 days of the date of this order, the Secretary of State, the Secretary of Defense, the Secretary of Labor, the Secretary of Transportation, the Secretary of Education, and the Secretary of Homeland Security shall deliver a report to the President through the APNSA for inclusion in the MAP with recommendations to address workforce challenges in the maritime sector through maritime educational institutions and workforce transitions.

…

(b) The report shall: (

i) include the current number of credentialed mariners and estimate the additional credentialed mariners required to support the policies described in this order;

(ii) analyze the impact of establishing new and expanding existing merchant marine academies…

Looks like Secretary Sean Duffy is already working on this.

(ii) analyze the impact of establishing new and expanding existing merchant marine academies as a means of educating, training, and certifying the additional credentialed merchant mariners estimated under subsection (b)(i) of this section; (

iii) identify any requirements for credentialing mariners that are unnecessary, insufficient, or unduly burdensome and provide recommendations for reform;

(iv) inventory existing educational and technical training grants and scholarships

Yes, execution will be a challenge, but this is doable, especially the following:

(v) assess the United States Coast Guard credentialing program applicability to United States Navy Active Duty and Reserve sailors to increase opportunities for sailors to transfer into the Merchant Marine with validated skills.

I have been hearing this for decades. So overdue. This will be a requirement to address the final existential problem we are trying to solve.

Sec. 17. Increase the Fleet of Commercial Vessels Trading Internationally under the flag of the United States.

…

(a) is designed to ensure that adequate cubed footage and gross tonnage of United States-flagged commercial vessels can be 12 called upon in times of crisis, while limiting the likelihood of Government waste;

(b) provides incentives that will:

(i) grow the fleet of United States built, crewed, and flagged vessels that serve as readily deployable assets for national security purposes; and

(ii) increase the participation of United States commercial vessels in international trade; and

(c) enhances existing subsidies to include coverage of certain construction or modification costs in a manner designed to enhance incentives for the commercial shipping industry to operate militarily useful ships that trade internationally under the flag of the United States.

Tie the below with an expansion of our Maritime Prepositioning Squadrons and ships in each squadron, and you are cooking with gas.

Sec. 21. Inactive Reserve Fleet. Within 90 days of the date of this order, the Secretary of Defense shall conduct a review and issue guidance on the funding, retention, support, and mobilization of a robust inactive reserve fleet. This review and guidance shall be delivered to the APNSA for inclusion in the MAP.

Bravo Zulu to everyone who worked so hard to get this exceptional EO completed and in front of the President so early.

Now we need to watch the execution and performance from here.

More. Faster…but for now, I’ll just enjoy a pleasant smile.