FMCÆs economic recovery role
Richard A. Lidinsky Jr. believes the U.S. Federal Maritime Commission has a definite role to play in helping the ocean shipping industry through the economic recovery.
'We meet today as our ports are suffering double-digit percentage cargo declines. Over 500 containerships are laid up or at anchor awaiting work. On certain foreign trade routes, carriers are moving containers virtually for free, charging just handling and fuel costs,' Lidinsky testified during his confirmation hearing for FMC commissioner before the Senate Commerce Committee on July 8.
'It is the role of the FMC, through its regulatory powers, to assist all segments of our waterborne commerce ' vessels, ports, support industries, labor both on board our ships and on our terminals, truckers and railroads ' in regaining their economic vitality and jobs when the upturn comes,' he said.
As FMC commissioner, Lidinsky said he would ensure that the FMC meets its legislative mandates and oversees dominant and emerging ocean shipping trades, while also keeping track of how other nations regulate their ocean carriers and how they impact the United States.
'The commission can also work with U.S.-flag carriers, ports and those involved in their operations with green projects and other job-creating innovations consistent with FMC authority,' he said.
In addressing a question about improving communication between the FMC and industry from Sen. Frank Lautenberg, D-N.J., Lidinsky replied: 'It should be better and we're going to work toward that goal.' ' Chris Gillis
Waterborne FMC commissioner
The U.S. Federal Maritime Commission should benefit from the diverse maritime industry experience of newly appointed Commissioner Richard A. Lidinsky Jr.
Lidinsky started his career as a congressional aid to the House Merchant Marine and Fisheries Committee before joining the FMC's Office of General Counsel as legislative counsel from 1973 to 1975.
In 1975, Lidinsky was appointed by the Maryland Port Administration to be director of tariffs and national port affairs. He was considered a key architect of the port protection sections in the Panama Canal Treaty implementing legislation and the 1984 Shipping Act. He also helped negotiate on behalf of the Port of Baltimore one of the first U.S.-China trade agreements.
In 1985, Lidinsky was hired by Sea Containers Ltd., a container manufacturing and leasing company, to establish its Washington office. As vice president of government affairs until 2006, he established Sea Containers' contracts to supply military equipment to the Defense Department from the company's factory in Charleston, S.C.
Lidinsky also served as a member of the Defense Transportation Association's Sealift Transportation Committee; as board director and on the Defense, Transportation and Port Security Committee of the British-American Business Association; and a high-level expert to the U.S. NATO Delegation on the Ports and Intermodal Transportation Committee from 1995 to 2005.
He has most recently worked as an attorney and international trade consultant in private practice.
Lidinsky's nomination follows Obama's decision in early June to name sitting FMC Commissioner Joseph E. Brennan as acting chair of the agency. Commissioner and former Chairman Harold J. Creel Jr. retired at the end of June. With Lidinsky's confirmation, the agency will have three commissioners, including Rebecca F. Dye. The FMC has slots for five commissioners, but has not been staffed at that level since 2006.
Obama's nomination of Lidinsky to FMC commissioner was praised by both Senators and industry officials.
Sen. Barbara Mikulski, D-Md., told the Senate Commerce Committee confirmation hearing that Lidinsky 'actually has experience in maritime' and 'we're lucky to get him.'
'We are very familiar with the qualities and skills that would be optimal in a commissioner serving this agency,' said Bruce Carlton, president and chief executive officer of the National Industrial Transportation League, in a letter to the committee. 'We believe Mr. Lidinsky's distinguished career of over 35 years in the maritime industry makes him an excellent choice to serve on the commission ' Mr. Lidinsky's knowledge of the ocean shipping industry and his vast experience with carriers and shippers will be valuable assets in the commission's deliberations.' ' Chris Gillis
Catch of a niche
Consolidators International, a Los Angeles-based freight forwarder and non-vessel-operating common carrier, formed a new division in early July to exclusively support its rapidly growing logistics services to the western Pacific tuna industry.
'The tuna industry with its far flung sea and land operations, requires distinct, specialized services,' said Tony Feist, CII's Tuna Support vice president, in a statement. Feist noted that hundreds of tuna boats cover vast areas of the Pacific, operating from a chain of islands including Samoa, Tonga, Papua New Guinea, Pohnpei, the Marshalls, as well as the countries of Thailand, Taiwan and Panama.
'There are two principal facets to our job,' Feist explained. 'One is the task of supplying parts and equipment for the tuna factories operating on the islands. The second is replacing spare parts and machinery for the tuna fleets. We must replace this equipment quickly to allow minimum turnaround time as tuna boats earn nothing while in port.'
Among the critical items handled by CII's Tuna Support division are parts and buoys made in Spain and re-exported to the western Pacific.
CII has agreements in place with two of the largest U.S. tuna companies, Star Kist and Chicken of the Sea, to move equipment and supplies for their fleets and land-based factories.
Feist said supplying the tuna industry in the western Pacific is a logistics challenge. 'General economic activity on these islands currently is weak due to the worldwide recession,' he said. 'Shipping companies, like Matson and Horizon, traditional lines serving this region, are cutting back sailing schedules or eliminating them entirely.
'Moving freight by air is even more challenging to the forwarder. The islands' small populations and anemic tourist industries make them peripheral to airline operations,' he said. 'CII really has to scramble to provide on-time, hassle-free delivery of parts and equipment, particularly emergency shipments.'
'We know the territory, and know how to move freight whatever the obstacles,' added Julian Keeling, founder and president of CII, which has specialized in freight transport to Australia, New Zealand and many western Pacific islands for more than 35 years. ' Chris Gillis