By Larry Kiern, Winston & Strawn LLP

Damages from the November 7, 2007 oil spill in San Francisco Bay from the Cosco Busan's allision with the San Francisco-Oakland Bay Bridge now exceed $70 million and are expected to approach $100 million as natural resource damages are assessed. The seriousness of this incident, occurring in such a pristine and ecologically sensitive region, cannot be underestimated.

By Joseph Keefe

If last year truly marked the revival of the "short sea shipping" concept in the United States, then some of that credit can be placed squarely on the shoulders of Chuck Raymond, President and CEO of Horizon Lines. As the U.S. Maritime Administration (MARAD) and Maritime Administrator Sean Connaughton began to talk up the pressing need to make "America?s Marine Highway" a reality, there was real excitement in the maritime community for the first time in many years. But making short sea shipping a viable concept ? long after it was first conceived as an idea ? will take more than idle talk. Perhaps that's where Chuck Raymond and Horizon Lines come in.

By Jeanne M. Grasso and Gregory F. Linsin

Criminal enforcement of environmental laws has evolved significantly over the last 15 years with the maritime industry becoming a prime target. This evolution has not only taken place in cases involving intentional MARPOL violations, but criminal investigations have also become a predictable component of the response to significant maritime casualties involving oil spills. This is not news to maritime-industry watchers, though 2007 was a banner year for enforcement actions, including several precedent-setting prosecutions.

By Joseph Keefe

In the summer of 1987 a loose consortium of deep-sea vessel operators got together to discuss the way forward in achieving a simple but critical goal: facilitating maritime industry compliance with Department of Transportation (DOT), United States Coast Guard (USCG) and international regulations and protocols. This seminal event resulted in what is now known as American Maritime Safety (AMS), Inc., a nonprofit trade association. The product of that early meeting is perhaps not remarkable in any particular way. That it occurred almost two years prior to the Exxon Valdez grounding certainly is.

By Barry Parker

In 2007 drybulk freight rates and asset prices were soaring for much of the year ? largely due to demand growth tied to movements of iron ore, much of it going into China. Data from consultants Drewry Shipping, in a November prospectus from Navios Maritime Partners, showed 2006 worldwide iron ore shipments of 722 million metric tons (up nearly 40 percent, from 524 million metric tons in 2003). Elsewhere, Drewry estimates 2007 seaborne iron ore trade at 787.7 metric tons and forecasts 822.2 metric tons for 2008.

By Tony Munoz

Popular wisdom says that China's economic growth depends on the exportation of cheap goods to the industrialized world. While that is a fair assumption, in the six years to 2005 exports accounted for only five percent of China?s total Gross Domestic Product (GDP) growth, while 95 percent of the growth came from domestic demand.

By Larry Kiern, Winston & Strawn LLP

Americans consume almost 500 million gallons of gasoline and diesel oil every day to power our cars, trucks, trains, planes and to heat our homes. Yet the United States produces only 35 percent of this essential fuel domestically, leaving this country to import 65 percent of its oil. The United States is the world's largest net importer of oil. Net imports total 12.2 million barrels of oil per day, more than twice as much as Japan and three times as much as China, the next largest importers. Likewise, America's growing reliance on low-carbon natural gas has led to further dependence on foreign suppliers. Record imports of liquefied natural gas (LNG) in the United States have increased to comprise four percent of America's consumption, with estimates that the share of foreign-supplied LNG will only continue to grow.

By Joesph Keefe

On October 10, I traveled to Kearneysville, West Virginia to see, first-hand, the physical manifestation of the biggest overhaul of mariner-documentation procedures in many decades. The U.S. Coast Guard has at long last embarked upon an ambitious but long overdue quest to change the way it interfaces with America's commercial mariners. The move to scale back operations at the 17 Regional Exam Centers (RECs) and centralize all credential-production operations ? among other things ? at Martinsburg, West Virginia has many in the maritime community concerned. And because the Coast Guard's recent performance in many things related to marine safety has been lacking, there could be real merit to those who would question whether the nation's fifth uniformed military branch is up to the task.

By Charles "Chuck" G. Raymond, Chairman, President and CEO, Horizon Lines, Inc.

The time is now to explore the viability of coastwise short sea shipping. At Horizon Lines, we recognize the importance of alternatives to a looming transportation infrastructure overload. We are ready to dedicate up to three vessels to an East Coast-Gulf Coast service. However, appropriate actions on the Harbor Maintenance Tax and Title XI loan guarantee program are still required to make deployment of a short sea service for containers commercially viable.

By Joseph Keefe

Well after departing the White House, Dwight D. Eisenhower characterized Andrew Higgins as "the man who won World War II." Higgins, of course, was the designer of the now famous landing crafts (LCPs, LCPLs, LCVPs and LCMs) that the strategy of winning the war was built upon. Because of his heritage, which saw him spend much of his early life on inland shallow rivers with shifting sandbars as hazards, his interest in the shallow-draft concept would eventually lead him to develop the platforms from which D-Day became a success and the "island-hopping" campaign in the Pacific was executed.

By John Benoit

In the maritime industry, almost everyone will agree that current market conditions are probably the best they have ever been. Around the world, operators are busy building next-generation fleets; shipyards are at capacity until the end of the decade, and day rates and charter rates remain at all-time highs. Not since the late '70s has the maritime industry been this robust and profitable. But analysts, pointing to the elephant in the room, say that the clock is ticking on this remarkable bull market.

By W. Richard Webster

There is little doubt that governmental policy often creates contradictions; current U.S. pension policy is a prime example. While the Treasury Department laments America's low savings rate and its impact on capital accumulation, Congress ? mandated to balance the budget ? has been passing legislation that severely restricts retirement savings. The resulting impact on a company?s retirement program is like trying to maintain steerage against a quartering sea with a head wind. The regulatory complexities and the parameters of deferred tax compliance have most managers at a loss when it comes to revamping or even simply understanding a company's executive retirement program.

By Larry Kiern, Winston & Strawn LLP

While the Administration remains largely preoccupied with the challenges in Iraq and Afghanistan and the global war on terror, Congress has been shining its light on important domestic matters warranting public attention. In the maritime arena, this column has previously reported on the controversy surrounding the Coast Guard?s Deepwater Program, complaints about the Coast Guard's performance of its marine safety functions, and the lack of leadership by the Administration in the area of environmental regulation, specifically air emissions and operational discharges from vessels. Another important subject, which has suffered from lack of Administration leadership, is the continuing serious threat to the security and safety of millions of American citizens vacationing on cruise ships departing America's ports. Despite the urgency of the danger and the ease with which meaningful improvements could be accomplished, the Administration has been noticeably missing in action. Leadership is supposed to be principally an executive branch function, but once again this Administration has failed to lead on an important domestic issue and in doing so has left a political vacuum for Congress to fill.

By Joseph Keefe

In January of 2006, a veteran harbor pilot died in Hawaii when he fell from a ladder after piloting a cruise ship out of the harbor. After falling in the water, he was hit by the pilot boat. In the same month, a Columbia River Bar Pilot lost his life on the job when he tried to disembark from a log carrier he had finished guiding during a storm. As he attempted to make the leap to a smaller shuttle boat that would return him to land, he went overboard and drowned. His body was finally recovered almost two days later. The Columbia River case is now mired in litigation.

By MarEx Staff

This morning, Gustavo Sanchez finished helping his son in Manila with his trinomial equations homework. Just before lunch, David Whitworth put the finishing touches on plans for his daughter's upcoming wedding in Liverpool. Following afternoon tea, Captain Bob Bell pushed the button on a massive computer file containing the updated maintenance and repair data for his vessel as well as all of this week?s supply requisitions. Tonight, Constantin Miklonos will find out whether his ten year-old Saab will need a new turbocharger. So what, you ask? From your comfortable chair looking out over the harbor, all of this sounds pretty routine. But on board the VLCC Neversail, now located about 1,700 nautical miles from the nearest landmass in the southern Pacific Ocean, the seemingly mundane activities of a ship's crew going about another monotonous day at sea are actually quite remarkable.

By MarEx Staff

In recent months, the French energy support giant, Bourbon Offshore, has made headlines around the world due to the accident involving the anchorhandling vessel Bourbon Dolphin and the deaths of some of its crew members off the Shetland Isles in the United Kingdom. No one will ever question the professionalism of BOURBON?s crisis management team; as the event played out in full public view, its senior executives, who never shied away from the media, comforted the family members of the Norwegian crew. In fact, BOURBON?s CEO, Jacques de Chateauvieux, recently traveled to the United States and made himself available to members of the global media in New York City in early September 2007.

By Larry Kiern, Winston & Strawn LLP

As the dog days of summer beset Washington, D.C., one recalls that a respected media commentator's take on the increased activity of our modern national government is that it can be attributed to the widespread installation of air-conditioning in the nation's capitol, which allowed government to become a year-round venture. So as visions of summer vacation come to mind to others, I'm reminded that the sounds of the capitol's air conditioners lurching on and off provide a metaphor for the fits and starts of our national government, including legislative and policy matters affecting marine safety and the environment.

By Joseph Keefe

The prospect of taking a seven-day cruise on the motor vessel Eclipse was thrust upon me in a rather backhanded way by my clever wife. Over dinner one night, she announced that this year's vacation would involve a trip to the Galápagos Islands. She had already put down a sizable cash deposit and had already gotten the kids wound up with tales of giant tortoises and a visit to faraway Quito, Ecuador. It was virtually a done deal when I decided to tune in and find out what it was all about. The words "June 30th departure aboard M/V Eclipse" immediately jumped out at me from the travel brochure. The more I read, the more I liked what I saw.

By David W. Brill, Esq.

It is welcome news that the worldwide demand for qualified seamen is so high lately that some Americans are finding their way onto foreign and flag-of-convenience (FOC) vessels. It?s also nice that Congress has provided the U.S. Maritime Administration (MARAD) with the creative tool that allows it to provide an incentive for foreign and FOC ships to man LNG vessels with a few hundred Americans. And as MarEx has recently reported, MARAD is putting would-be LNG terminal operators who commit to these concepts at the head of the line.

By Joseph Keefe

No issue facing today's maritime executive is more daunting than the overwhelming task of trying to stay in compliance with any number of environmental protocols being thrust upon the ocean transport world. And the regulatory noose is tightening quickly in many ways. Coast Guard, IMO (International Maritime Organization) and local protocols ? sometimes at odds with one another ? seem to propagate on a daily basis. Legislation and industry rules governing invasive species in ballast water, oil pollution, treatment of grey/sewage water and criminalization of mariners all seem to dominate the news on a regular basis. Arguably, however, no issue is more ornery and causes more debate than the effort to reduce pollution from stack emissions from marine platforms.

By Michael Canic and Brett Reagan

When Hurricane Katrina struck the U.S. Gulf Coast, it had a devastating impact on many levels ? human, material and economic. Like most companies, Point Eight Power had no contingency plan in place to deal with such an event. As the hurricane approached, almost all of the company?s employees evacuated the New Orleans area. Then, as the hurricane struck, the company recognized the urgent need to develop and aggressively implement a Disaster Response Plan. Within 72 hours of landfall, such a plan had been developed and was being implemented. This plan was built upon "Five Pillars," which formed the basis of the company?s emergency response efforts. Maritime executives everywhere are likely to find these "Five Pillars" valuable, especially in the midst of yet another hurricane season and the now omnipresent threat to homeland security from any number of unknown and unfriendly sources.

By Tony Munoz

On February 18, 1968 at 3:18 p.m., a huge fireball erupted, sending a geyser of white and yellow flames fifty feet into the sky as the Atlantic Richfield Company (ARCO) struck oil on the barren plains of the Alaskan North Slope. It had been a long journey of exploration and dry wells, but on that day in 1968 the drill team knew this discovery would forever change the American oil industry. Since World War II, the federal government and American oil companies had aggressively searched for crude oil in Alaska, but none had been found until that day.

By Joseph Keefe

According to U.S. Coast Guard (USCG) Admiral Ronald F. Silva, "The problem of invasive species is the highest priority marine environmental issue for the U.S. Coast Guard." He adds that while the problem is certainly not confined to the Ninth District (the Great Lakes), the area ? being a source of drinking water for 37 million North Americans ? potentially has the most at stake in this regard. These comforting words should give hope to the maritime community at-large as it struggles with the quandary of deciding what ? if any ? ballast water treatment system it should install or retrofit onto its oceangoing fleets. Unfortunately, Silva spoke these words during the first quarter of 2003. More than four years later, there has been arguably little progress from the federal government on the issue of aquatic invasive species and, in the face of this perceived inaction, unilateral action on the state and local level has only worsened a growing crisis.

By MarEx Staff

It is a very good time to be in the business of shipyard repair, conversion and newbuildings in North America. The summer of 2007 promises a continuing and robust market for American shipyards, and the active ship-replacement business related to the Oil Pollution Act of 1990 (OPA 90) phaseouts is anything but over. Today?s good times all but obscure the agony created by a devastating 2005 hurricane season for Gulf Coast yards.

By Larry Kiern, Winston & Strawn LLP

Elections matter. The contemporary relevance of that maxim is playing out these days in Washington, D.C. as the new Democratic-controlled House and Senate have taken the reins of power firmly in their hands and put their own stamp on Washington's political agenda. The new way of the new majority is having an impact on the maritime field as well, including legislative and policy matters affecting shipyards and ship construction.

By MarEx Staff

The financial results recently posted in March 2006 by French offshore giant BOURBON caught our interest. We reviewed the company's financials and found it posted extraordinary growth over its 2005 results. However, while the company?s growth was impressive, the MarEx was really struck by the unbelievable growth demonstrated by Bourbon Offshore. The division had revenues of USD 503 million (EUR 376.6 million), an increase of 35.8 percent, gross operating income (EBITDA) of USD 247.2 million (EUR 185.1 million), an increase of 60.1 percent, and operating income of USD 149.6 million (EUR 112.8 million), which is an increase of 92.9 percent.

By Joseph Keefe

The news last September that a bidding war had erupted for the North Sea Floating Production Storage and Offloading (FPSO) specialist Petrojarl ASA made for interesting reading. The story dominated the marine financial market news sector for more than a few weeks and as the stakes rose, it was apparent early on that Petrojarl would soon have new owners. So when the dust finally settled, the news that Petrojarl had yet another principal was not necessarily eye-popping stuff. Instead, the big story was that the world's dominant tanker operator, Teekay Marine Services, with its purchase of the majority of Petrojarl's stock, had entered the FPSO game.

By Joseph Keefe

Back in March, MarEx went to Washington to do what we do best: ask the tough questions about the most pressing issues of the day. In line with that, it is somewhat of a well-known tradition that we regularly make the effort to visit Coast Guard headquarters to meet the commandant, especially in the wake of a change of command there. Less than one year into his tenure at the helm of the country's fifth uniformed service, Allen has had to confront more than one internal failure both head on and in the glaring media spotlight usually reserved for other, more high-profile commanders. So far, the marks he has received are high, but the term is far from over.

By Joseph A. Keefe

Cruise Liners Plug Into Clean Energy As the Competition Heats Up in the Alternate Power Provider Market

By Joseph Keefe

Reality Check

At Sabine Pass, TX, the arrival of a nondescript crude oil tanker draws little fanfare. Literally hundreds of them arrive and depart annually, providing feedstock for the many refiners dotting the Sabine and Neches Rivers. Seven days later, it departs for destinations unknown. It was a long port call, preceded by a four-day stay at anchor awaiting berth. Six weeks after that, the demurrage bill forwarded by the vessel?s charterer ? a middle-sized trading house ? is found to be absolutely crippling to the bottom line of the receivers. Commencing from the time of Notice of Readiness until the vessel weighs anchor for the inbound transit, the bill totals, in all, $122,000, including the usual restricted discharge claim.

By Craig Thomas

The advent of the much-ballyhooed Transportation Worker Identification Credential (TWIC) is almost upon us. What this means for the maritime community depends on where you sit in the regulatory picture. The TWIC, which was supposed to make life easier and safer in the new millennium, may or may not accomplish that goal. For mariners, shipowners and others involved with the transport of oceanborne cargo, TWIC represents just one more hurdle in the seemingly endless round of changes to the global maritime regulatory environment. Longshoremen, ship surveyors, pilots, port captains, truck drivers, service technicians, superintendents and an endless list of others now face compliance in the near future. At face value, TWIC is a problem only for the mariners and workers who will be forced to deal with it on the ground, in the industrial environment. In fact, nothing could be farther from the truth.

By Joan Bondareff and Duncan Smith

With a mandate from last November's election, the Democrats have taken over the leadership of both the House and Senate and changed the direction of Congress on a plethora of issues. Within the "first 100 hours," the Democrats in the House, with some Republican support, passed six bills ranging from raising the minimum wage to repealing tax benefits for the oil and gas industry. Democrats take over the chairmanship of all the committees in both chambers with considerable influence over their agendas, while previously powerful Republicans move into the role of Ranking Members, or senior leadership positions on the Republican side of the aisle. It?s natural to ask: What impact will this change have on the maritime industry? We attempt to answer this question below.

By Joseph A. Keefe

As the Pacific Maritime Institute (PMI) goes about its daily business of training and catering to a wide range of mariners, the maritime companies who send their personel to PMI al seem to have a comon complaint . Their dissatisfaction has absolutely nothing to do with the quality of instruction being provided by the premier profesional maritime training facility on the U.S. West Coast. Instead, the universal ? and very serious, according to most offshore supply, salvage and towing firms ? problem facing today's employer of maritime professionals is the recruitment and retention of quality officers and ratings .

Written by Timothy C. Cronin & Matthew J. Nasuti

Imagine one or more of the following scenarios: 1) Federal, state, and local agency inspectors arrive at the front gate of your facility with a search warrant. They have received a tip from a disgruntled former employee who claims that the company is violating certain regulations and they want to search the facility. 2) There is an industrial accident at your facility and one or more persons is injured. Within minutes of notifying the appropriate emergency response units, federal, state, and local agency investigators arrive to gather facts and interview individuals who have witnessed the accident. 3) Your company has observed the letter of the law in obtaining all necessary permits for its dredging project. Three months into the project, the United States Environmental Protection Agency brings it to a halt claiming that you are in violation of your permits. 4) Your company has arranged for transportation of hazardous cargo. Due to no fault of the company there is an accident which causes the cargo to spill. Federal, state, and local authorities undertake an investigation. 5) Subpoenas are issued by federal, state, and local agencies ordering you and your fellow corporate officers to provide the agencies with company and/or personal documents relating to the events set forth in one of the above scenarios. 6) Without warning or readily discernible reason, your company receives an administrative agency request for the production of documents.

By Joseph A. Keefe

The U.S. Coast Guard Revamps the Credentialing Process for the Growing and Changing Demographics of the U.S. Merchant Mariner

By Joseph A. Keefe

When MarEx caught up with newly confirmed Maritime Administrator Sean T. Connaughton in mid-November, he had recently returned from a whirlwind tour of America?s maritime infrastructure, and the midterm elections had only just taken place. The results of November's elections promise to set Washington on its ear when the 110th Congress arrives to take power in January. With the legislative branches now in the hands of the Democrats, the New Year could bring new meaning to the word "gridlock."

More than 18 months ago, the environmental lobby here in the United States was in full panic mode. That much was obvious when the doorbell rang on a rainy, cold January evening. My son announced that someone from something called the Sierra Club was at my front door. I eased open the storm door and stepped outside into the chilly night air. "This is about ANWR, isn't it," I said, more as a statement than a question. The lead activist, one of two that had been dispatched to my neighborhood on that dreary evening, reluctantly acknowledged that I was right. She produced a single piece of literature that contained only one message: Drilling is wrong.

In 1947, Kerr-McGee drilled its first well from a fixed offshore platform in the U.S. Gulf of Mexico (GOM). Since that time, the GOM has grown to include approximately 4,000 oil rigs, of which 850 are manned. Today's GOM oil and gas production is supported by thousands of offshore support boats and crew boats that ply the waterways, and by hundreds of helicopters that cruise across the skies.

Amidst the angst and handwringing over the spiraling cost of crude oil, a surprising White Knight has emerged from the pack of potential energy substitutes. With crude oil hovering in the $60 per barrel range and gasoline and home heating oil prices closely following these trends, liquefied natural gas (LNG) is looming as a very viable energy option. LNG is clean - compared to its crude and black oil cousins - convenient for transportation and can be brought to market far quicker than other options. Even the environmentalists have far fewer qualms with this surefire source of plentiful energy. So what's the problem? In this case, the old adage holds true: If it seems too good to be true, it probably is.

By Joseph A. Keefe

Quietly nestled between the picturesque North Carolina Outer Banks and the swank getaway destinations of Hilton Head Island and Charleston are the two coastal cities that make up the heart of the North Carolina State Ports Authority (NCSPA). According to data supplied by the American Association of Port Authorities (AAPA), the ports of Wilmington and Morehead City rank 65th and 108th, respectively, in terms of total cargo volume compared to other ports nationwide. On the other hand, it just so happens that Wilmington and Morehead City are two of only fifteen strategic military ports in the U.S., as classified by the Department of Defense and the U.S. Maritime Administration.

By Tony Marino

Attempting to navigate through a maze of smoke filled passageways deep within the ship is an incredibly difficult task. ?The location of exits, ventilation, and built-in fire systems are all readily available to the crew as they work to contain a fire. As weight is added or shifted within the vessel, a knowledge of vessel stability is also necessary to ensure that the very actions being taken do not create another situation that could cause a loss of the vessel or lives.

By Joseph A. Keefe

The destruction wrought by Hurricanes Katrina and Rita to the offshore oil and gas infrastructure and oil refineries in the U.S. Gulf of Mexico will always be remembered as a watershed event for America's vulnerable energy supply lines. Beyond this, the catastrophic effect of the storm surge on Louisiana's fragile wetlands has yet to be assessed and, without question, the final financial tally will be staggering, further heightening the urgency for the state of Louisiana to address the problem of its rapidly eroding coastline.

By Joseph A. Keefe

Crude oil has hit an all time high of $60 per barrel. On the North Slope of Alaska, Prudhoe Bay, America's largest source of crude oil, is producing only 450,000 barrels per day--a 72 percent decline from its peak year in 1989.

There are few untapped large producing fields in the United States. While the Gulf of Mexico may replace the declining production of the Prudhoe Bay fields, America is expected to import nearly 70 percent of its oil consumption over the next 10 to 15 years.

Joseph Keefe explores the fallacies and realities of ANWR and its impact on the environment, national defense, the American shipbuilding industry, and the U.S. Merchant Marine.

"ANWR: Beyond the Debate" is an opening salvo in America's quest to minimize its dependence on foreign oil and it explores the unsavory alliances the United States must endure to quench its thirst for oil.

The Jones Act has been hailed as the birthright of U.S. flag carriers, a measure of protection granted not only by the Jones Act itself, but by our Founding Fathers as well. In 1789, the First Congress enacted maritime cabotage as a form of national security for the original 13 Colonies. The Merchant Marine of 1920, Section 27 of which is known as the Jones Act, was simply the reaffirmation of the colonial cabotage laws that had been under constant attack throughout the preceding generations in Americana.

This is riveting debate between two executives in the offshore support industry. "Fixing Leaks in the Jones Act" by Robert Alario of the Offshore Marine Service Association, and "Foreign Investment and Control by U.S. Citizens" by Larry T. Rigdon, President & CEO of Rigdon Marine, explores the perceived infringement and investment flexiblities of the Jones Act, the sacred cow of U.S. flag operators.

A Call to Arms- the end of U.S. Sea Power Supremecy

The Port Of Houston Authority is gearing up in a big way to expand on its already envious position as one of the world's super ports.

In the United States alone, 'Training Magazine' estimates that corporations are spending in excess

of $52 billion dollars annually on training.

Profiles in Leadership-

Environmental Risk Management - What to do when the government is at the gate.

The electronic chart is a new technology that provides significant benefits in terms of navigation safety and improved operational efficiency.

In 1995, The American Waterways Operators (AWO) launched a historic safety initiative together with the U.S.Coast Guard.

Smoke and Morrors by Joseph A. Keefe, is a look at the world of marine cargo surveyors in crisis and transition.

Perhaps nowhere has there been as great a change in the maritime world as in the area of treasure salvage.