M.E.B.A. Telex Times for October 29, 2026

MARITIME UNIONS BACK CRACKDOWN ON JONES ACT WAIVER ABUSES

The M.E.B.A. and eight other maritime labor organizations have voiced support for the efforts of Reps. Salud Carbajal and Rick Larsen as the lawmakers seek accountability over compliance with transparency and reporting requirements governing the ongoing Jones Act waiver.

As reported in last week’s Telex Times, the Coast Guard and Maritime Transportation Subcommittee’s Ranking Member, Rep. Carbajal whisked off an October 16 letter to Department of Homeland Security (DHS) Secretary Markwayne Mullin demanding answers about the Department’s oversight of ongoing Jones Act waivers. Since March 17, when the Administration issued the first of three Jones Act waivers, the welcome mat has effectively been rolled out for foreign-flag operators to grab American shipping work at the expense of U.S. mariners. The latest waiver is set to expire on November 15.

Now, in an Oct. 27 letter, the nine organizations representing U.S.-flag maritime labor thanked the two lawmakers for pressing both the Administration and the foreign-flag waiver recipients to comply with safeguards established by Congress. The signatories echoed concerns that required disclosures have been incomplete or late, with some foreign vessel operators providing boilerplate explanations — or no meaningful justification at all — for their domestic voyages. M.E.B.A. signed onto the letter sent by maritime and transportation leaders that also included the heads of TTD, MTD, AMO, MM&P, SIU, MFOW, SUP and ARA. The leaders lauded the two lawmakers, saying, “we particularly appreciate your commitment to ensuring that these extraordinary waivers are totally consistent with the national defense purposes for which they were intended and are not used to disadvantage American mariners and other American workers.”

The letter also questions whether the waivers meet the legal standard of addressing an immediate adverse effect on military operations, as required under the FY 2023 National Defense Authorization Act. The Administration justified the issuance of the waivers on national security grounds. “Instead,” the maritime leaders noted, “the program appears to have enabled hundreds of domestic voyages by foreign vessels crewed by foreign mariners operating under exemptions from laws that Congress never intended to set aside. In several cases, waiver authority has reportedly been used by COSCO, a Chinese state-owned shipping enterprise that media reports allege are conducting espionage operations near U.S. coastlines. In another case, a foreign vessel was operated in U.S. domestic trade by Russian mariners.”

The signatories warned that foreign mariners operating under Jones Act waivers may not be complying with U.S. wage-and-hour, employment, tax and immigration laws, giving them an unfair advantage over American mariners, who must meet extensive legal, licensing and security requirements. They specifically questioned the use of foreign crewmembers whose D-1 visas prohibit domestic commerce and raised concerns about tax obligations and whether foreign crews undergo comparable security vetting and credentialing. The letter calls for rigorous congressional oversight and enforcement of existing law. The organizations stressed that American mariners stand ready to support the nation’s transportation, energy and defense needs, and that Jones Act waivers should remain the rare exception that Congress intended. You can view the letter here.

AMP CALLS OUT EXPLOITATION OF JONES ACT WAIVER

The American Maritime Partnership (AMP) is calling out the exploitation of Jones Act waivers by commercial interests seeking to profit at the expense of the U.S.-flag maritime industry, with little apparent connection to national security. In an October 28 letter to Under Secretary of War for Acquisition and Sustainment Michael Duffey, AMP President Jennifer Carpenter pointed to Vessel Availability Request No. 163 as an example of how the waiver process is being used to pursue commercial opportunities under the guise of a national-defense exception.

The request sought vessel availability for a petroleum shipment with five possible products, two loading ports in Louisiana and Texas, and 10 potential destinations spanning the Southeast, Northeast and Puerto Rico. With cargo volumes and routing options left broadly open, Carpenter argued that the request amounted to a menu of commercial transactions designed to maximize the shipper’s financial flexibility rather than address an immediate military need.

AMP contends that the waiver process, intended to address an immediate adverse effect on military operations, is instead opening the door for commercial interests to pursue the most profitable shipping arrangements while U.S.-flag operators and American mariners are losing business. Carpenter warned that such requests make it difficult to meaningfully assess either military necessity or the availability of qualified U.S.-flag vessels. The partnership said Request No. 163 reflects a broader pattern of waiver requests increasingly disconnected from the national-defense rationale that is supposed to justify an exception to the Jones Act.

USTR SEEKS TWO-MONTH EXTENSION OF CHINA MARITIME FEE SUSPENSION

The Office of the United States Trade Representative (USTR) is seeking public comment on a proposal to extend the suspension of Section 301 actions targeting China’s maritime, logistics and shipbuilding sectors through January 9, 2027.

The port fees emanated from the USTR’s 2024 Section 301 investigation into China’s policies supporting its maritime, logistics and shipbuilding sectors. The original action established fees on vessels operated by Chinese companies and Chinese-owned vessels, as well as on Chinese-built vessels operated by non-Chinese carriers. A separate fee structure was established for certain foreign-built vehicle carriers. But after China imposed its own retaliatory fees on U.S. ships and massive tariffs on critical minerals used in military technology and semiconductors, President Trump suspended the shipping fees and restrictions for one year, with China doing the same. The suspension is scheduled to expire November 9.

Under the new proposal, covered maritime transport service fees and certain duties would remain suspended from November 10 through January 9, giving the U.S. additional time to negotiate with China over the trade practices identified in the investigation. If approved, the extension would mean the covered charges would not accrue or be payable during the additional two-month period.

USTR is accepting public comments through October 30, 2026, at 5 p.m. Eastern Time. Interested parties can submit comments through the USTR electronic portal under docket number USTR-2026-0694. No account is required. The extension remains a proposal, and the existing suspension is still scheduled to expire November 9 unless the USTR office takes further action.

HANWHA RESTRUCTURES PHILLY SHIPYARD TO PURSUE NAVY WORK

The Hanwha Group is restructuring ownership and management of Philly Shipyard as the South Korean conglomerate continues its push into U.S. naval shipbuilding while maintaining the yard’s commercial operations. Hanwha acquired the Philadelphia yard for approximately $100 million in December 2024, initially dividing ownership between Hanwha Systems (60%) and Hanwha Ocean (40%). Under a new agreement, the majority stake will transfer to Hanwha Defense USA, a subsidiary of Hanwha Aerospace. Retired Rear Adm. Tom Anderson will serve as the company’s president of shipbuilding. Hanwha says the reorganization will better align its government and commercial shipbuilding operations as it seeks U.S. Navy contracts. Although Philly Shipyard has a long record of building commercial vessels, including Jones Act tankers and containerships, it has never built naval vessels. The company is reportedly working toward obtaining U.S. naval shipbuilding certification by 2028.

The company has invested approximately $350 million in facility upgrades and approved another $400 million in investment, with longer-term plans calling for as much as $5 billion to expand capacity and modernize operations. Hanwha has also doubled the yard’s workforce to approximately 2,500 employees and recently secured a U.S. government contract for three Missile Range Instrumentation Vessels. Despite the investments, Philly Shipyard faces significant hurdles, including high production costs, labor recruitment and training challenges, space constraints and limited domestic commercial shipbuilding demand. Hanwha ultimately aims to increase production from roughly 1.5 ships annually to as many as 20.

REGISTRATION FOR CMES SPRING 2027 COURSES BEGINS ON SUNDAY

Registration for Spring 2027 courses at the Calhoon M.E.B.A. Engineering School opens on November 1 as applications for classes held during January 1 through June 30, 2027 will begin to be accepted. Applications for these classes will be accepted via the CMES website and U.S. mail.

Due to the expected high volume of applications, please allow 2–3 weeks for processing before contacting the School. If those who submit applications do not receive a registration validation letter by email after that time, contact the Registrar at registrar@mebaschool.org. For classes held during July 1 through December 31, 2027, applications will not be accepted before May 1, 2027.

The course schedule and application forms can be obtained at Union Halls, the Calhoon M.E.B.A. Engineering School website (www.mebaschool.org), or by calling the School’s Admissions Desk at (410) 822-9600.

LAWMAKERS WARN OF LEGAL RISKS IN POTENTIAL RUSSIAN DIESEL SHIPMENTS

Seven senior lawmakers, including one Republican, are raising legal and national security concerns over a potential arrangement to import Russian-origin diesel fuel into the United States, warning that companies involved in the shipments could face criminal or civil liability. In an October letter to Goldman Sachs CEO David Solomon, the lawmakers cited President Trump’s October 9 announcement and Treasury Department General License 135, arguing that the proposed imports could violate federal law and provide revenue to Russia amid its ongoing war against Ukraine.

Sen. Jeanne Shaheen (D-N.H.) is leading the charge on this issue and was joined by signatories Sens. Chris Coons (D-Del.), Elizabeth Warren (D-Mass.), Thom Tillis (R-N.C.), Ron Wyden (D-Ore.), Sheldon Whitehouse (D-R.I.) and Rep. Gregory Meeks (D-N.Y.).

The potential shipments raise questions throughout the maritime supply chain, from vessel operators and shipping companies to U.S. ports, fuel terminals and commercial intermediaries. The lawmakers specifically demanded preservation of records documenting vessel movements and port calls, berth assignments, terminal reservations, port-agent communications, shipping documents and customs filings. They also sought records identifying parent companies, subsidiaries, affiliates and contractors involved in any proposed or actual transactions.

The letter warns that legal exposure could extend beyond the importer of record to companies that knowingly purchase Russian diesel or facilitate its importation. That could put firms involved in financing, transporting, unloading, storing or distributing the fuel at risk if the transactions violate federal law. The lawmakers also questioned whether the administration had met statutory requirements governing Russian energy imports and changes in U.S. sanctions policy. Signatories demand that Goldman Sachs preserve relevant records, including communications with shipping companies, suppliers, importers, purchasers and government officials dating back to September 1, 2026. They requested written confirmation by October 28 of the preservation measures and disclosure of any knowledge of or involvement in the potential imports.

The dispute highlights how sanctions and foreign policy decisions can reach directly into U.S. maritime operations, potentially exposing vessel interests, port facilities, terminal operators and other industry participants to legal scrutiny over the movement and handling of Russian-origin fuel.

U.S., DENMARK SIGN MARITIME COOPERATION AGREEMENT

The U.S. and Denmark have signed a memorandum of understanding aimed at expanding maritime cooperation, including shipbuilding workforce training, investment in U.S. shipyards and access to advanced shipbuilding technology. The agreement calls for closer collaboration to increase shipbuilding capacity and improve the efficiency of vessel construction and repair. According to the State Department, the partnership is intended to help train American shipyard workers, attract Danish investment to U.S. facilities and strengthen domestic maritime supply chains. Officials say the effort could support additional shipbuilding and repair jobs while bolstering the U.S. maritime industrial base. The State Department and Denmark’s Ministry of Foreign Affairs will oversee implementation.

SEAFARERS SHORT ON HAPPINESS THIS QUARTER

Seafarer happiness declined for the third consecutive quarter, with the latest Seafarers Happiness Index falling to 6.81 out of 10 in Q3 2026, down from 6.87 in Q2 and 7.26 at the end of 2025. The report, published by The Mission to Seafarers in partnership with Inmarsat and Idwal, highlights a widening gap between strong onboard relationships and deteriorating shore-side support.

Six of the index’s 10 measures declined. Interaction with fellow crew remained the highest-rated category at 7.70, reflecting the importance of supportive shipmates. However, shore leave fell to 5.46, the lowest score, as shorter port calls, security restrictions, remote terminals and minimum crewing continue to limit opportunities to go ashore. Connectivity also recorded the sharpest decline, dropping from 7.46 to 6.89 amid concerns about affordability, reliability and data limits that restrict contact with family and friends.

The report warns that strong crew relationships are helping seafarers cope with shortcomings the industry must address, rather than making those conditions acceptable. Ben Bailey, director of programs at The Mission to Seafarers, emphasized that camaraderie aboard ship cannot replace adequate support ashore. The findings underscore the need for meaningful shore leave, reliable and affordable communications, and better attention to seafarer welfare. The results serve as a reminder that supporting the mariners who keep global commerce moving requires more than recognizing their resilience; it requires improving the conditions in which they live and work.

NEXT MONTHLY MEMBERSHIP MEETINGS

All times are local.

Monday, November 2 – Boston @ 1200; Seattle (Fife) @ 1300.

Tuesday, November 3 – CMES @ 1430; Charleston @ 1400; Houston @ 1315; Oakland @ 1230; Portland, Maine @ 1200.

Wednesday, November 4 – Jacksonville @ 1300; New Orleans @ 1315; Online HQ “Town Hall” Meeting @ 1300 (No Voting) – Register by emailing mebahq@mebaunion.org.

Thursday, November 5 – L.A. (San Pedro) @ 1230; NY/NJ @ 1300; Norfolk @ 1300; Tampa @ 1300.

Friday, November 6 – Honolulu @ 1100.

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