MARINE ENGINEERS' BENEFICIAL ASSOCIATION (AFL-CIO)
         "On Watch in Peace and War Since 1875"

MEBA TELEX TIMES                          MAY 19, 2006

The Official Union Newsletter

NUMBER 20

Progress on second OSG newbuild...
Labor Secretary Visits school...Tonnage tax system altered to benefit more companies...Brief maritime observance at School...Express yourself! We give a shout out to the industry and sound off with the latest MEBA chatter that speaks volumes. Getting vocal, we pay lip service and verbalize the news of the day as we spread the maritime word. The newsletter with the gift of gab, the Telex Times is the talk of the town!

LABOR SECRETARY TOURS MEBA SCHOOL
Labor Secretary Elaine Chao was MEBA's guest for a day on a tour of the facilities at our School. Secretary Chao started off her tour with a visit to the MEBA's new Merchant Marine Memorial, an appropriate stop as the Secretary readies for her Maritime Day luncheon address on Monday. The tour was led by MEBA President Ron Davis and School Director Joyce Matthews along with Baltimore Branch Agent Bill Van Loo and AMC Pres. Gloria Tosi.

The Secretary dropped in on several courses in session which proved opportune - as she was able to interact with students as they perfected their craft. Chao possesses a strong maritime background and was comfortable communicating with our members about various issues. MEBA brothers and sisters consistently spoke of the need to keep current with their skills in a constantly changing and dynamic maritime industry. The Secretary finished her tour of the School with a cruise in New York Harbor and in Alaska's Prince William Sound "aboard" MEBA's new bridge simulator. 

The Secretary was joined by her Counselor John Flynn along with a DOL contingent.  MEBA Pres. Ron Davis issued thanks to the Secretary "for taking time out of her busy schedule to visit with the hardworking MEBA members."

"Special thanks also," he continued, "to the faculty and students who were generous with their time and eager to share their extensive knowledge with the Secretary."

AKER LAYS KEEL FOR SECOND OSG VESSEL
Aker Philadelphia Shipyard celebrated the keel laying for the second of a series of ships being built for Overseas Shipholding Group, which marks the sixth ship constructed at the yard since it started production in 2000. The first section of the double-hulled product tanker was installed in the yard's Building Dock just a few hundred yards behind the first ship in the series, also currently under construction in the dock.

When completed, each vessel will weigh 46,000 deadweight tons (dwt) and be the most modern product tankers in the U.S. domestic fleet. The first ship in the program is expected to be delivered by the end of 2006, with the second vessel scheduled for completion during 2007. MEBA officers will be aboard both vessels.

The ships will be owned by American Shipping Corporation, a subsidiary of Aker American Shipping, and chartered to OSG.

As part of the ceremony, coins were placed under the keel block in a practice which recreates a long-standing tradition whereby shipbuilders hide special coins in the keel section of a ship as a permanent symbol of good fortune and safe travels.

TONNAGE TAX MODIFICATION WILL ENABLE MORE SHIPPING COMPANIES TO TAKE ADVANTAGE
The U.S. maritime industry will benefit from a provision in recently-passed tax bill that was signed into law this week by President Bush. The Tax Increase Prevention and Reconciliation Act is the much ballyhooed legislation that extends tax relief.

A provision within the bill extends the expiring shipping tonnage tax which was initially enacted in October 2004. The tonnage tax provision adjusts the way that U.S. ships engaging in international trade are taxed, allowing U.S.-flagged vessels to better compete in the international market. It did this by replacing the corporate tax system for shipping industries with a tax based on the overall tonnage of a company's international U.S.-flag commercial fleet. MEBA was part of a broad maritime labor and industry coalition promoting the initial legislation in 2004. 

In addition to an extension, the new law allows more shipping companies to take advantage of the tonnage tax provisions by reducing the minimum size threshold for application from 10,000 tons to 6,000 tons. Several MEBA-contracted companies are likely to benefit from this modification in the tonnage tax regime.

SCHOOL WILL HOST BRIEF MARITIME DAY CEREMONY
On Thursday, May 25, 2006, the Calhoon MEBA Engineering School will be holding a brief ceremony in recognition of National Maritime Day. As you know, Maritime Day honors the brave men and women of the United States Merchant Marine who have faithfully served our country in times of war and peace. 

The ceremony will be held at 3:30 p.m. at the MEBA Merchant Marine Memorial Park, located on the front grounds of the school. The public and all MEBA members and retirees are welcome to attend.

BIPARTISAN BILL INTRODUCED TO BEEF UP NATION'S TRANSPORT SYSTEMS
A joint Commerce and Banking Committee bipartisan bill has been introduced in the Senate to make significant security improvements to the nation's transportation systems.

Senate Commerce Committee Chairman Ted Stevens (R-Alaska) along with Co-Chairman Daniel Inouye (D-Hawaii) were joined by Senate Banking Committee Chairman Richard Shelby (R-Alabama), and Ranking Member Paul Sarbanes (D-Maryland), along with 37 co-sponsors, in introducing the comprehensive legislation.

Chairman Stevens noted that the bill would dramatically enhance our nation's port, rail, and transit security systems. "The events of 9/11 made clear that Congress needed to address the vulnerabilities within the Nation's transportation systems and dramatically increase security measures to protect the essential interstate flow of commerce."

Among other things, the bill would direct the Coast Guard to expand the deployment of Interagency Operations Centers to ports throughout the United States. These centers, already operating in five cities, would bring together all port security and operations stakeholders into a single facility at major ports.

In addition, bill provisions would require greater standards and requirements for cargo screening equipment, and call for additional data to be incorporated into the system used to target cargo and containers for searches.

It also provides measures to further enhance the forthcoming Transportation Worker Identification Credential (TWIC) system as well as two cargo screening programs - the Container Security Initiative (CSI) and the Customs-Trade Partnership Against Terrorism (C-TPAT).

FOREIGN OIL TANKER CHIEF TRIED TO TRICK HIS OIL WATER SEPARATOR
The Justice Department has announced the indictment of a chief engineer of a foreign flagged oil tanker in connection with the concealment of deliberate discharges of oil-contaminated bilge. The crime allegedly occurred in the Gulf of Mexico from the M/T PACIFIC RUBY. Korean national Kun Yun Jho was charged with conspiracy, making false statements and violating the Act to Prevent Pollution from Ships for his alleged role in maintaining false oil record books that concealed tampering with required pollution prevention equipment.

According to the indictment, Jho allegedly used fresh water to trick the Oil Water Separator and Oil Content Meter, which are intended to detect and prevent the overboard discharge of oil. The "tricking" allegedly took place before and after the owners and operators of the ship installed the anti-tricking equipment in May 2005 that prevented the use of the fresh water system at the same time as an overboard discharge. It is alleged that a screwdriver was used to force open a valve that allowed fresh water to circumvent the anti-tricking device and flush the Oil Content Meter so that it was unable to register the actual oil content during overboard discharges. The indictment alleges that Jho presented a false Oil Record Book to the U. S. Coast Guard during an inspection in Port Neches in September 2005. The entries in the required log indicated proper use of the pollution prevention equipment during discharges of oil-contaminated bilge waste made in the Gulf of Mexico. If convicted, Jho faces up to five years in prison on each count of the indictment.

NOAA SCIENTISTS RE-ANALYZE WEATHER CONDITIONS DURING WRECK OF THE EDMUND FITZGERALD
A re-analysis of the weather conditions on Lake Superior during the November 1975 gale when the lake freighter EDMUND FITZGERALD went down, killing all 29 aboard, shows a period when the winds and waves were the most extreme, say the NOAA scientists who conducted the review.

"Modern observation and forecast systems have substantially improved forecasts for the Great Lakes over the past 30 years, allowing for greater advance notice of storms, which allows most ships to avoid such severe conditions," the authors wrote. "But the tragic events of 10 November 1975 should continue to serve as a reminder of the hazards one can encounter when traveling on the Great Lakes."

"During the late afternoon and early evening of Nov. 10, conditions deteriorated rapidly with winds in excess of 69 miles per hour, hurricane-force gusts and waves more than 25 feet high," said Thomas Hultquist, science and operations officer at the NOAA National Weather Service forecast office in Negaunee, Mich., and lead author.

The loss of the 729-foot-long ship and all aboard is immortalized in the Gordon Lightfoot song, "The Wreck of the Edmund Fitzgerald."

"This shows how quickly conditions can worsen and become life threatening on the Great Lakes," said Hultquist. The NOAA authors combined meteorological observations from the storm with hindcasts-forecasts run in retrospect-of conditions throughout the storm. The hindcasts indicated the critical six-hour window that proved fatal to the ship and its crew. Hindcasts help meteorologists better understand historical events, which could also improve forecasts. A lack of surface weather observations made it difficult for researchers to determine the actual conditions. However, using high-resolution numerical computer models, the three researchers were able to simulate a more complete picture of wind and wave conditions during the storm.

GREAT LAKES DREDGING CRISIS HIGHLIGHTED
A new publication is focusing attention on the dredging crisis on the Great Lakes. A handout issued by Great Lakes Maritime Task Force (GLMTF) illustrates how lack of adequate dredging of Great Lakes ports and waterways is affecting cargo movement on the Great Lakes.

"The U.S. Army Corps of Engineers' budget for dredging Great Lakes ports and waterways has been inadequate for decades," said James H. I. Weakley, President of GLMTF. "As a result, U.S.-Flag vessel operators on the Great Lakes estimate that three of every four cargos they've carried in the past five years represented less than full loads. This inability to fully maximize the efficiencies of waterborne commerce is affecting every customer of Great Lakes shipping."

The handout features a map of the five Great Lakes, with select ports and the number of inches vessels' loaded draft has been reduced by the shortfall in the Corps' dredging budget for the Lakes. "It borders on scandalous that such major ports as Duluth/Superior (Minnesota/Wisconsin), Indiana Harbor and Cleveland cannot ship or receive full loads in Lakers," declared Weakley. "Duluth/Superior is the largest coal shipping port on the Lakes, yet 1,000-foot-long vessels are light loading by as much as 4,500 tons each trip. Indiana Harbor and Cleveland are major steel producing centers. With domestic steelmakers constantly battling for market share in the global economy, every ton of iron ore that's left behind on the loading dock and delivered on another trip is a cost they cannot bear."

PRESIDENT ISSUES TRANSPORT DAY/WEEK PROCLAMATION
Today is National Defense Transportation Day, annually recognized upon the third Friday in May since 1957. In 1962 it was declared that the week during which that Friday falls should be designated as ''National Transportation Week.'' It was so designated in order to recognize the men and women who work in the transportation industry and who contribute to our Nation's well-being, and defense. In honor of all this, the President this week issued a proclamation excerpted below:

"On National Defense Transportation Day and during National Transportation Week, we thank all those who contribute to a sound transportation infrastructure that keeps our country moving, advances our economic growth, and strengthens our national defense.

My Administration remains committed to providing the American people with the best possible transportation system. In August 2005, I signed the Safe, Accountable, Flexible, and Efficient Transportation Equity Act: A Legacy for Users, to upgrade our Nation's network of  roads, bridges, and mass transit systems, introduce new safety standards, and fund needed road improvements that will ease traffic congestion in communities across our country. My Administration is also increasing research in advanced transportation technologies that will improve our environment, help us end our reliance on foreign sources of energy, and strengthen our economic and national security.

Modern transportation also enables our Armed Forces to quickly deploy troops, move crucial supplies and equipment, and assist with emergency situations. Whether on land, over water, or in the air, our citizens rely on the safety and efficiency of our transportation systems to arrive at work, deliver goods and services, and travel with family and friends. America is grateful to the dedicated transportation professionals and military service members for their tireless efforts to make America's transportation network the best in the world.

NOW, THEREFORE, I, GEORGE W. BUSH, President of the United States of America, do hereby proclaim Friday, May 19, 2006, as National Defense Transportation Day and May 14 through May 20, 2006, as National Transportation Week. I encourage all Americans to learn how our modern transportation system contributes to the security of our citizens and the prosperity of our country and to celebrate these observances with appropriate ceremonies and activities."

NEXT REGULAR MONTHLY MEETING
Monday, June 5 - Boston, Seattle;
Tuesday, June 6 - Baltimore, Houston, Jacksonville, San Francisco;
Wednesday, June 7 - Calhoon School, Charleston, New Orleans, Portland;
Thursday, June 8 - Los Angeles, New York, Norfolk, Tampa;
Friday, June 9 - Honolulu.

CAA Reunion is June 30th-July 2, 2006. Plan accordingly and support the CAA!

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