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Inside the Hearing: Maritime Administration, Federal Maritime Commission and the Fight for Cargo

Channel: What's Going on With Shipping? Published: 2026-06-05 20:25
What's Going on With Shipping?

This video is a commentary on a House hearing about U.S. maritime policy, featuring opening statements from MARAD administrator Captain Steve Carmel and Federal Maritime Commission chair Laura Deello. The host argues the hearing correctly centers on cargo, mariners, shipbuilding, and supply-chain enforcement, but misses a major issue: the Jones Act waiver process and how it interacts with domestic shipping capacity.

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Detailed summary

The episode frames a House hearing on the future of U.S. maritime policy as a chance to assess whether the Trump administration’s maritime agenda is coherent, adequately funded, and operationally useful. Host Sal McAliano walks through the institutional background of MARAD and the FMC, then listens to and reacts to opening statements from Captain Steve Carmel and Laura Deello. The core thesis he extracts from Carmel is that rebuilding maritime strength is not just about ships or subsidies; it is about cargo, mariners, industrial base, and operating systems that can actually be used in crisis. The core thesis he extracts from Deello is that the FMC is trying to become more proactive in policing anti-competitive shipping behavior, defending U.S. …

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Main takeaways

  1. MARAD’s pitch is cargo-centered: ships matter only if there is dependable cargo to sustain them.
  2. The tanker security program is being framed as a real military logistics asset, not a pilot project.
  3. The Ready Reserve Force is aging, manpower-constrained, and potentially being used in ways that weaken commercial readiness.
  4. The FMC is trying to become more aggressive and preventive on shipping abuses after OSRA 2022.
  5. The Jones Act waiver process is the biggest unresolved policy tension in the hearing.
  6. Undersea cables and maritime nuclear propulsion are presented as strategic future issues, not side notes.

Market read by horizon

Short term

Near term, the actionable setup is the Jones Act waiver and the FMC’s enforcement posture: both can affect tanker demand, surcharge behavior, and shipping routes quickly. The main risk is that policy remains fragmented, with MARAD sidelined while cargo keeps moving through ad hoc exceptions.

  • The immediate tactical issue is the ongoing Jones Act waiver for oil and fertilizer cargo, which the host says is distorting the policy conversation.
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  • Watch whether Congress or MARAD proposes a clearer cargo-allocation mechanism for U.S.-flag tankers and TSP ships.
  • The FMC’s open investigations and refusal to rubber-stamp surcharge requests are the near-term enforcement signal.
Mid term

Over the next few months, the most likely path is incremental maritime tightening: more scrutiny of carriers, more debate over waiver rules, and pressure to turn the maritime action plan into actual cargo and shipbuilding programs. The setup improves only if Congress and MARAD can convert rhetoric into capacity, manpower, and commercial utilization.

  • Over the next several weeks to months, the key test is whether the maritime action plan turns into concrete cargo, shipbuilding, and workforce programs rather than slogans.
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  • The TSP and RRF stories imply a base case of incremental strengthening if cargo access, manpower, and recapitalization can be aligned.
  • The FMC’s stance suggests a more interventionist regulatory environment for global shipping firms, especially around surcharges and anti-competitive conduct.
Long term

Structurally, the video argues that U.S. maritime power will depend on rebuilding an integrated system of ships, crews, cargo, ports, cables, and energy technology. If that fails, the U.S. stays dependent on foreign maritime infrastructure; if it succeeds, the country could reset its competitive position in global shipping.

  • The structural thesis is that U.S. maritime power depends on treating ships, cargo, crews, ports, cables, and energy systems as one integrated industrial-security regime.
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  • If MARAD can link advanced technology like SMRs to maritime logistics, the U.S. could try to reset the economics of shipping rather than merely defend legacy capacity.
  • A durable risk is continued dependence on foreign-controlled maritime infrastructure, especially containers, cranes, and undersea cable capability.
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Key claims (9)

BULLISH U.S. maritime industrial policy Maritime Action Plan

The Maritime Action Plan is the administration’s framework for rebuilding U.S. maritime capacity around shipbuilding, workforce, industrial base protection, and security resilience.

The host explicitly maps the plan into four pillars and says they will recur through the hearing.

BULLISH military sealift logistics Tanker Security Program

The tanker security program is a real logistics capability, not a demonstration, because it supports refueling of Navy and MSC vessels at sea.

The host quotes Carmel and then explains the program’s operational role in underway replenishment.

NEUTRAL shipping economics cargo

A shipbuilding program without structured access to cargo will not produce ships, because cargo is the economic fuel of U.S. maritime capacity.

Carmel explicitly says cargo access is required; the host repeats this as the key constraint.

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Assets discussed (9)

Jones Act
MIXED other

Presented as foundational to U.S. maritime capacity, but the current waiver is criticized as undermining domestic shipping incentives.

Maritime Action Plan
BULLISH other

Framed as the administration’s central maritime policy framework with shipbuilding, workforce, industrial base, and security pillars.

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Speakers

HOST Sal McAliano GUEST Captain Steve Carmel GUEST Laura Deello

Interview (9 Q&A)

cargo for US ships

What is your plan to get more cargo onto US-flagged ships?

The speaker doesn't give a direct answer from the hearing itself but suggests ideas like waiving tariffs on cargo carried by US-flag ships, and notes this is a critical element that didn't get enough attention during the hearing.

RRF vs commercial fleet

How does the Ready Reserve Force compete with and cannibalize the commercial maritime fleet?

The speaker explains that RRF ships are being used by Transportation Command (Transcom) instead of commercial ships, often because contracts aren't bid out in time for commercial carriers to respond. The RRF was designed in 1977 to supplement a large merchant marine but has morphed into competition. The fleet averages 45 years old, ships are being phased out, and recapitalization has been unsuccessful.

mariner shortage

What is the status of US merchant mariner credentialing and the mariner shortage?

Credentialing is run out of West Virginia (put there by Senator Byrd) and has suffered from government shutdowns, data problems, and printing issues. The former deputy maritime administrator took 6-9 months to get his own license reactivated. The Coast Guard has started tackling improvements but progress is slow. The system makes it impossible to even track how many mariners exist, so the exact shortage is unknown.

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Where this transcript pushes against consensus

  • The host says the Jones Act waiver is badly structured and not aligned with maritime revival goals, but the administration witnesses defend it as policy and avoid discussing alternatives.
  • Carmel emphasizes cargo access as the central constraint, but gives no concrete mechanism for how to secure enough commercial cargo for expanded programs.
  • The host argues MARAD should have been consulted on the waiver, while Carmel says MARAD was not consulted at all; the process itself appears inconsistent with MARAD’s mission.
  • The claim that the waiver helped lower gas prices is questioned by the host, who says prices rose instead.
  • The SMR shipping thesis is ambitious but largely aspirational in this hearing; no concrete implementation plan is given.
  • The host’s preferred reform ideas, including Jones Act reforms and active reserve concepts, are interesting but not substantiated within the hearing.

Topics

MARAD budget and maritime action planFMC enforcement and OSRA 2022Jones Act waiver controversyTanker Security ProgramReady Reserve Force and mariner shortagesUndersea cables and data export riskSmall modular reactors on shipsShipbuilding and cargo accessGlobal shipping disruptions and surchargesU.S. maritime industrial policy

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