Real Oysters and Proverbial Pearls

What do men on strike do? They might carry a picket sign, but they will certainly drink beer. This was the Propeller Club’s Fall Oyster Roast in Chesapeake Virginia, a twice-annual event geared more to labor- the working men and the white-collared petit bourgeoise, than to the ownership class. The members of the International Longshoremens' Association, who at previous events were low-key and focused on doting their wife and kids, instead were talking boisterously with each other, wearing identical orange strike shirts. Many of them were good old southern boys with nice pickup trucks and brand-name outdoors gear. Life treated them well so far, and they were intent on keeping it that way for themselves and their children. One recent college graduate, who worked in a shipping company office, lamented “I wish I could go on strike”. My request for the DJ to play Bon Jovi’s “Living on a Prayer” went unheeded. Nevertheless, I hummed the good man’s words: “Tommy used to work on the docks; Union's been on strike, he's down on his luck; It's tough, so tough…” In other news, Military Sealift Command's civil service mariner will now receive paid shore leave equal to the number of weekends spent at sea. That is, 2 days of paid leave for every 7 days; a quadrupling of the previous 1 day of paid leave for 15 days at sea. The NOAA, a much smaller organization operating oceanography vessels, implemented this plan last year. For the Military Sealift Command, additional shore leave will be granted retroactively to December 24, 2023, and will appear on the next leave statement for this pay period. I expect that the realization of this new paid leave plan will greatly improve retention of skilled mariners, who have a choice of working for other employers.

Laying Up the Ships (Crewing Challenge, Part 2)

To obtain a merchant marine officer’s license in the previous century, one could choose to attend an academy or apprenticeship, or simply accrue enough time at sea to take the tests. Around 2002, all new deck officers were required to attend classroom instruction before obtaining their licenses. While it was more difficult to upgrade without a college education or registered apprenticeship, there was little impact in workforce numbers, as the maritime academies were churning out new mates. Between 2014 and 2017, new training requirements brought the minimum required course of study to that of a two-year degree. For the first time, these requirements also applied to engineering officers. The Military Sealift Command increased hiring of officers, to allow its workforce more time off the ship to focus on their continuing education. It was also predicted that many of the retirement-eligible officers would retire, instead of return to the classroom for three weeks of training (on the engineering side). This lesser requirement applied to anyone who began their maritime career before 2014. A downturn in the offshore oil industry meant fewer mariners were leaving government employment. Two of the crew-heavy warships inherited from the uniformed Navy were retired (USS Ponce and USNS Rainier). In some cases, twice as many officers as the Military Sealift Command intended to keep on the books. Work-Life Balance was good, and the horror stories of the past didn’t dissuade young achievers from staying. In 2017, they offered early retirements, drafted layoff letters, and stopped bringing new officers onto the payroll. A certain number of ships in the homeports of Norfolk, San Diego, and Guam were known as homesteading vessels, where the majority of personnel maintained as close to a 9-to-5 schedule as one can maintain in the industry. If the ship was in port, which it was most weekends, they would go home at night. Then came the COVID-19 pandemic. In a faulty version of the telephone game, the Admiral at the time believed that a total lockdown to the ship, or “gangway up” was in order. The mariners, as he understood, worked a 4-month tour, then rotated into a monthlong vacation. They didn’t need to go home at night, for the time being. Although the ballistic missile submarines were an exception, stateside uniformed military personnel were not locked onto the ships at night; the military spouses would not accept such a proposal. The tours were rarely 4 months, more likely 6 months and growing as the most skilled mariners found other employment (I was working in the office at this point). While conditions slowly became more palatable, the threat of lockdown permeated for two full years. Where the Military Sealift Command had been able to coax new officers of the Class of 2018 and 2019 to accept a lower rate of pay; bonuses in the amounts of $36,000 were needed for the Class of 2022. Promotions for officers’ positions were open continuously, so that anyone who had the ability to promote, did so. Maritime academy enrollment has not been as robust as it had been in the 2010s. Due to the use of federal training ships, a drug-free policy is imposed, which is at odds with the culture of the states where the academies are located, such as California, Maine, New York, and Massachusetts. More young people are opting out of college, as well as careers overall, in favor of self-directed work-life balance. Fear of falling behind economically isn’t such a concern with Gen Z. Which brings up the new Admiral’s Force Generation Reset. By crewing fewer ships, the ships that remain will have larger crew sizes; this opportunity was forsook in 2017. This will allow for mariners to attend training and take their earned vacation, and build a work life balance. PS: I know this post is a couple days late, but I have managed to be maximally busy at training for my day job, and in overseeing renovations at my rental condo. Over the hump for this week, though.

Take Your High-Paying Job and Shove It? (Crewing Challenge, Part 1)

Recently in maritime news, there has been discussion about the Military Sealift Command laying up 17 ships, or about 25% of the ships that are crewed by civil service mariners. For many of the job positions available, the Military Sealift Command offers the highest cumulative wages in the industry. However, it comes with a significant cost in personal time. Whereby officers in other shipping firms work a total of 6 calendar months per year, Military Sealift Command has required a minimum of 8 months. This situation is partially rectified by a newly-introduced part time schedule at 6 months per year, though with reduced healthcare and retirement benefits. While maximizing a paycheck used to be the priority for many Americans, whether to provide a better life for the grandkids or to keep up with the Joneses, it is no longer the case with Gen Z. Obviously, if this was the case, Military Sealift Command wouldn’t be competing with shoreside firms for recent college graduates. These folks are putting their money where their mouth is, as far as Work Life Balance is concerned. To achieve financial stability that allows this balance, one can earn more, or cut expenses. Scott Trench, founder of the Bigger Money Podcast, notes that housing, transportation, and food make up the largest three expenditures for most households. Housing: Younger people in general have stopped trying to pay the rent on one income. Definitely a change from a decade ago, when it was the thing to sign a lease on a shoebox apartment in some hip part of the city. Living with roommates, in the parents’ oversized house, or with an equal-earning partner cut one’s housing costs in half, or even less. Transportation: A new pickup truck or SUV is no longer within the middle-class budget. Sure, you can get an 8-year car loan at $1000 per month. But anyone with an iota of sense would buy a lightly used vehicle, or a more modest new car. Going beyond the “daily driver” car, we might wonder if we have manufactured enough durable goods- or “expensive toys” - to last the next decade or two. Lightly-used Recreational Vehicles, All Terrain Vehicles, and Boats are available on the market for enthusiasts to buy at often-steep discounts. Food: The Golden age of American restaurants- and nightlife in general- is over. The New York Times wrote that hospitality has become inhospitable, from the view of customers upset about trite service and high prices, employees about demanding customers and low wages, and owners about rising costs and lack of labor. The trend is shaping out to be a small number of high-priced, high-quality restaurants, and a larger number of food hall (cafeteria?) establishments with reduced staff; with more entertainment and communal dining taking place at home. Barbeque, anyone? Earn More: The Dual Income Couple can be empowerment, rather than a trap. With parents now having their first child closer to age 32 than 22, there is a good chance that both mom and dad are established in their careers, and logically, it would be a large leap to give up the safety net of two income streams. Coming out of the Pandemic, there was a significant mismatch between work-from-home jobs and people who would benefit from them; and the fact that even among white-collar workers, WFH jobs paid more than in-person roles. With the economy being an efficient machine, we are seeing the emergency of a work-from-home, flexible hours track that allows the primary caregiver to spend time with the kids. Overall, more intelligent financial planning means less need for overtime shifts and long stints at sea. Many of us experienced mariners know the prodigal type that gives away their paychecks to man toys, girlfriends and nightclubs. Some of us are fortunate to know a forever-single mariner with a net worth nearing $5 million: keep savings high and expenses low. Moderation is finding the balance between these two extremes, something we may have forgotten in the not-too-far past.

Class of 2024

Not many weeks ago, the US Merchant Marine Academy celebrated its commencement for the Class of 2024. Each year, there are around 200 graduates receiving their bachelors degrees, and an start to life as officers at sea (with a few going into the Army and Air Force). There are also a handful of masters degrees in Engineering, with one of my Class of 2015 classmates commencing again in 2024. I may not be a diploma-winning part of this pomp and circumstance, but I do feel something in common with these fresh graduates. In the past year, I earned my Chief Engineer's license. While I had done the studying and exams back in 2018, the final step- acquiring sea time as second-in-charge of the engineering department, eluded me for a while. It involved a job and lifesytle change (from office-based electrical engineer to at-sea First Assistant Engineer), as well as learning my new shipboard role in a fly. As someone else mentioned, they have books telling you how to be a new officer or a captain, but nothing for the roles in-between. There is a bit of foolish pride: a wall by the dining hall lists every graduate who became a Chief Engineer or Captain. At least it used to be there. As I analyzed previously on this blog, some classes graduated many who achieved this license, and some graduated few, depending on strong advancement opportunities in early career. My class was fortunate in this way. Literally having their name scratched on the wall, the maritime officer comes full circle from their classroom education. Other careers may require a masters degree or doctorate, but working through the ranks of shipboard positions is an indispensable part of educating those who lead onboard ships.

Industrial Resilience on the Chesapeake Bay

The ill-fated M/V Dali is pierside at Norfolk International Terminal in the Hampton Roads area, having been towed south through the Chesapeake Bay last month from Baltimore. During the accidental blockade of Baltimore’s inner harbor as a result of the Key Bridge collapse, the additional maritime traffic sent to Hampton Roads exercised, but did not overstress, the capabilities of the local maritime industry. At a Maritime Day event in May, I casually surveyed various local maritime service providers. Among those who experienced a windfall of business were harbor pilots, tug boat operators, and longshoremen. Being on the roads, I noticed the increase of terminal truck drivers and trains carrying shipping containers and coal from April to June. Coal carriers and container ships made an increase of visits to Norfolk International Terminals, driving the increase in road and rail traffic. Several Ready Reserve Fleet ships were stranded in Baltimore; their counterparts in the Hampton Roads area picked up at least one cargo mission. Two classes of ships that appear to have diverted elsewhere are cable-laying ships and car carriers (or, roll-on, roll off). Baltimore’s inner harbor had special facilities for both. Also of note is one historic ship whose maintenance schedule was altered by the blockade. SS John Brown, a museum ship normally docked in Baltimore, is now in Colonna’s drydock undergoing a periodic maintenance and repair period. Different than the usual assortment of inland vessels and small offshore craft, this vessel is a decorated piece of World War Two history. The SS John Brown was a full-fledged break-bulk cargo ship, and was built to typical dimensions of the era. To arrive in Norfolk from Baltimore, she cruised the Chesapeake Bay on her own power.

SCOTUS adds to Maritime Law

I am not sure how Bright Enterprises, the New Jersey-based plaintiff in the recent US Supreme Court Case (Loper Bright Enterprises et al. vs Raimondo), arranges their shipboard workforces, but many American commercial fishermen are working shareholders whose workplace conditions are outside of the purview of labor laws. The New York Times recently painted a picture of the fishing industry, consisting of limited rest, frequent injuries, and abuse of stimulants (1). With this in mind, it was less surprising that a maritime company would be on the vanguard of small and mid-size businesses challenging the regulatory state. Overturned in this case was the Chevron Deference, established in the 1980s and named for a major corporation, seemed to put a cap on the excesses of corporate attorneys in the “greed is good” era- although deregulation of telecom and finance would continue through the next decade. Bright Enterprises is a sympathetic plaintiff, and their amici curiae (allies) even more so. At question was a $700 per day regulatory cost for ride-along marine fishery inspectors, which in 2016 sunk David Goethel’s small fishing business in New England cod and clams (2)(3). Another recent gem from the US Supreme Court came in SEC vs Jarkesy, which interested me since the liberal justices were against expanding the right to jury trials to defendants in civil cases currently decided by an Administrative Law Judge (ALJ). With the caveat that the decision does not address license suspension and revocation actions, the Supreme Court may have strengthened the position of mariners and aviators facing certain legal actions by the US Coast Guard or Federal Aviation Administration. Yet, in many cases, a mariner or aviator under charges would prefer to have their case reviewed by an ALJ than a randomly-selected jury. The ALJ would presumably be more informed about technical decisions and risk trade-offs within their sector of the transportation industry, whereas a jury might come to a premature conclusion when casualties occur to the environment or people at sea. (1) https://www.nytimes.com/2024/06/06/magazine/fentanyl-death-fishing.html (2) https://apnews.com/article/fc068b291ae54450be38530c512a09f6 (3) https://causeofaction.org/supreme-court-denies-petition-review-job-killing-fishery-rule/

Trump Came to Town

Virginia Beach and Chesapeake went all out for President Trump upon his arrival, completely shutting down 15 miles of busy suburban freeway so that his entourage had a completely private thoroughfare from the airport to a berry farm near the North Carolina line. Such accommodations inconvenienced some of his followers, who had to work on a Friday and did not have the luxury of spending the day perusing merchandise and food stands at the berry farm. A caravan thus formed on the backroads, arriving at the duck fields to find that there was no more room to hear the once-disgraced president speak. Cars lined the side of the road, new cars, no beaters. Their occupants had nice clothes, good hair, and smooth hands, untaxed by grueling work or hard living. Nearest to the berry farm were mansions with many cars in their front yards. One must wonder how much each automobilist paid for the privilege. Chesapeake used to vote for the Democratic Party, between the family farm Dixiecrats and the urban industrial neighborhoods of South Norfolk. But Chesapeake is now a suburban wonderland filled with economically secure members of the military industrial complex. Donald Trump was welcome here. A cul de sac served as promontory for those who could not enter the venue. For ninety minutes, Trump’s voice rehashed talking points soothing to the audience’s ears. From here, you could not see Trump, but his voice boomed invisibly over the fields like a FDR fireside chat, or how God talks to people in movies. Studies show that Trump’s biggest fans are unchurched. Trumpism is their religion. I’m no stranger to political speeches, which seasoned politicians always keep to 10 minutes or less. Trump’s hour and a half oratory was different. One woman told me that Trump “could speak so long, because he knows so much”. After Trump left the stage, cars started to fill up the Wawa fuel station. There were Teslas and big pickup trucks, and a few MAGA hats, t-shirts, and #FJB stickers. But it was remarkable how these hardcore Trump supporters blended in as the regular American citizens you would see at the strip mall or county park. Experts will say that Virginia is fool’s gold for the Republican Party, having gone 20 years voting for the Democrats. But Trump’s handlers knew what they were doing. Many of the cars came from rural North Carolina , the quintessential swing state audience, and the Chesapeake suburbanites added visual reinforcement to the rally, so important to Trump’s image as the American hero.