AWO Letter - May 22, 2025

ADM Lunday Announced as President Trump’s Nominee for Coast Guard Commandant. Presiding over the commencement ceremonies for the U.S. Coast Guard Academy Class of 2025, Secretary of Homeland Security Kristi Noem announced that President Trump has nominated ADM Kevin Lunday, currently Acting Commandant and previously Vice Commandant, to be the 28th Coast Guard Commandant. He has also named ADM (Sel.) Thomas Allan, currently Acting Deputy Commandant for Operations, to be Vice Commandant; VADM (Sel.) Nathan Moore, currently Atlantic Area Commander, to be Deputy Commandant for Operations; VADM (Sel.) Jo-Ann Burdian to be Atlantic Area Commander; VADM (Sel.) Joseph Buzzella to be Pacific Area Commander; and VADM (Sel.) Douglas Schofield to a new Chief of Staff position. 

Secretary Noem described this new leadership team as prepared to execute President Trump's vision for a revitalized, reorganized Coast Guard shaped by Force Design 2028, the project she initiated earlier this year to create a blueprint for the Service to meet the needs of the future. As part of this effort, the Secretary has announced that flag officer positions will be reduced by 25% by next year. In addition, she has disapproved the selection board report on 2025 promotions to rear admiral (lower half), or RDML; the selection board convened to consider 2026 promotions will be provided with guidance to align with the Administration's priorities and the reorganized leadership structure. Now that new leadership has been announced, a new list of flag assignments is expected to be announced in the coming weeks.

AWO President & CEO Jennifer Carpenter commented, “We congratulate ADM Lunday and the new Coast Guard leadership team on their nominations. We look forward to continuing our long and strong partnership with the Coast Guard to support U.S. homeland security and the safe, secure, and efficient transportation of maritime commerce essential to the U.S. economy.”

If you have any questions, please contact Caitlyn Stewart.

In Memoriam: Keith Kirkeide. AWO mourns the death of longtime industry leader Keith Kirkeide, who passed away earlier this month. Keith was a key contributor to AWO’s work since the 1990s, first as Vice President at Crowley Maritime and later as President & CEO of Express Marine.  Keith was elected to be AWO’s Coastal Safety Chairman during the early days of the Coast Guard-AWO Safety Partnership and later brought his expertise and spirit of leadership to AWO’s Board of Directors, where he served as an Atlantic Region Director since 2018. Keith also served on the AWO Executive Committee as Coastal Sector Chairman from 2018-2019.  “Keith was a true gentleman and a great professional,” said AWO President & CEO Jennifer Carpenter.  “It was my privilege to learn from him and an honor to call him my friend.  AWO sends our deepest condolences to Keith’s family and friends.”

AWO Makes Recommendations to Reduce Regulatory Burdens on the Towing Industry. In response to the White House Office of Management and Budget’s request for information soliciting ideas for deregulation in line with President Trump’s executive orders, AWO has submitted a comment letter and list of deregulatory action items for the Administration’s consideration. The list, which was informed by conversations with members and the Executive Committee, is inclusive of regulations recommended for recission because their costs exceed their benefits, they are outdated or unnecessary, or they impose unreasonable burdens on towing vessel and barge operators. The list also includes recommendations for regulatory modifications and policy clarifications that would have a deregulatory effect.

At the AWO Spring Convention, members were asked for input on the association’s deregulatory agenda. The additional recommendations from that dialogue will be shared with the Board of Directors and with the Trump Administration, and we will continue to collect member feedback to guide our advocacy as the Administration’s effort progresses.

If you have questions, concerns, or suggestions, please reach out to Caitlyn Stewart.

AWO/AFPM Petitions for Review of EPA CHC Rule Waiver Held in Abeyance. In an anticipated development after AWO and the American Fuel and Petrochemical Manufacturers (AFPM) petitioned for a review of the U.S. Environmental Protection Agency's waiver authorizing California to enforce the majority of its Commercial Harbor Craft (CHC) Rule, the U.S. Courts of Appeals for the D.C. Circuit and Ninth Circuit recently held both petitions in abeyance. This procedural step, which stays all proceedings, resulted from EPA requests to allow time for the Administration's "new EPA leadership to review the challenged action." While the court proceedings are stayed, EPA's waiver remains in effect and the California Air Resources Board continues to have authority to enforce the approved portions of the CHC Rule. If you have any questions, please contact Patrick Parsons.

AWO President Speaks on Jones Act at AFL-CIO Meeting. Speaking in her dual capacity as President & CEO of AWO and President of the American Maritime Partnership, Jennifer Carpenter addressed the AFL-CIO Maritime Trades Department at its Executive Board meeting on May 7. Jennifer discussed the Jones Act’s importance to American national, economic and homeland security; the longtime partnership between vessel owners, labor, and shipyards in championing the law; and how the current political landscape is informing Jones Act advocacy.

The Seafarers International Union’s coverage of Jennifer’s remarks can be found here.

AWO Sponsors Jones Act Cable Ad Campaign. AWO is pleased to have sponsored the recent “Always Ready. Always Present” cable ad campaign touting the importance of American maritime and the Jones Act to U.S. national, economic, and homeland security. The ad, developed by the American Maritime Partnership, ran in the Metro DC area on CNN, CNBC and Fox News throughout May, including during AWO’s annual Barge-In on Capitol Hill. You can view the ad here.

Join American Maritime VOICES to Help Support the Jones Act. Having a strong, nationwide network of domestic maritime industry supporters is critical to growing support for the Jones Act and defeating attempts to weaken or repeal it. To grow this grassroots network, AWO and other maritime organizations partnered to create American Maritime VOICES. American Maritime VOICES aims to educate supporters about the maritime industry and developments in Congress and across the nation.

Help grow this network of Jones Act support! Check out the latest edition of The Voice newsletter, and join American Maritime Voices for free here.

Support Workforce Advocacy by Participating in NWF Survey. AWO recently shared a survey link with representatives of carrier members that operate on the inland waterways. This survey is part of a National Waterways Foundation research project that will compare workforce factors and opportunities in the inland waterways industry to the rail and trucking industries. To participate in this important effort that will create clear, compelling data for AWO's advocacy work and our industry's public engagement, please submit a single response for your company by May 22 using the emailed link. If you have any questions, contact Patrick Parsons

NOAA Issues Voluntary Vessel Speed Reduction Request in California. The National Oceanic and Atmospheric Administration (NOAA) has issued a voluntary Vessel Speed Reduction (VSR) request along the California coast. This initiative runs from May 1 to December 31, 2025, and vessels 300 gross tons or larger are asked to slow to 10 knots within designated zones, including the newly expanded southern California area encompassing the Chumash Heritage National Marine Sanctuary. Northern California operators are asked to prioritize the western traffic lane of the San Francisco Traffic Separation Scheme (TSS) when traveling in the San Francisco Offshore TSS. NOAA is looking to protect endangered blue, fin, and humpback whales from ship strikes, reduce ocean noise, and cut air emissions with this measure. Compliance is monitored via AIS data, and NOAA emphasizes that the speed reduction is voluntary and that vessels may deviate from the operating recommendations whenever necessary for safe navigation.

Missouri General Assembly Passes Bill Repealing Paid Sick Leave Law. On May 14, Missouri lawmakers passed HB 567, a bill that repeals the paid sick leave law that was previously approved via a ballot measure last November. Following passage of the ballot measure, AWO worked with Missouri lawmakers and coalition partners to change the law to exempt mariners from the paid sick leave requirements due to our industry’s unique operations. This action resulted in bills introduced in both the Missouri House and Senate that would exclusively exempt mariners from the paid sick leave law. HB 567 strikes the paid sick leave law in its entirety and will now be sent to Governor Kehoe’s desk for signature. Governor Kehoe has indicated that he will sign the legislation, which will take effect on August 28, 2025.

AWO Joins Holcim Supporting Michigan Port Grants Program. On May 7, Kyle Burleson, AWO's Director, State Advocacy, joined AWO Board member Chuck Hriczak of Holcim in Lansing to testify at an informational hearing about the Michigan Maritime and Port Facility Assistance Grant program. Established by state law in 2022, the grant program was only funded for one year. Chuck informed the committee about Holcim's maritime assets and Michigan operations, and Kyle discussed Michigan's maritime industry and the history of port funding in Michigan. AWO and Holcim are asking legislators to fund the grant program in the amount of $10 million for the next fiscal year. For more information, please contact Kyle at kburleson@americanwaterways.com or (313) 407-8072.

AWO PAC and Inside Elections. AWO PAC has partnered with Inside Elections for another special edition, featuring 2026 election analysis for Pennsylvania and Arizona. 

AWO PAC is the connected political action committee for The American Waterways Operators and serves as the trade association's separate segregated fund. As a trade association, AWO is prohibited from using general treasury funds or membership dues to make federal contributions. AWO is one of the most effective advocacy associations in Washington, DC, and relies on voluntary personal contributions to fund AWO PAC.

AWO PAC supports federal candidates who are champions of the U.S. tugboat, towboat and barge industry and who are leaders on issues important to our industry. AWO PAC is dedicated to protecting AWO members' investments in the safest, most environmentally responsible and most economical mode of freight transportation and safeguarding the integrity of the Jones Act to protect the bottom lines of our members.

AWO PAC may solicit contributions from individuals of a member company once the member representative gives AWO written prior approval.

SPRING CONVENTION RECAP

On May 13-14, AWO members gathered in Washington, DC for the Spring Convention, Annual Membership and Board of Directors Meeting, and Barge-In. Attendees discussed and voted on important association business, heard from regulatory leaders and other experts on timely business and public policy issues, met with legislators on Capitol Hill to advocate for industry priorities, and enjoyed one another's company at a variety of networking and social events. Thank you to everyone who joined us!

Read below for a full recap and stay tuned for video footage from the meeting, which will be available in the coming weeks.

AWO Welcomes New Directors

AWO Leadership hosted an orientation session for new members of the Board of Directors on Monday, May 12, welcoming them and providing helpful information as they begin their terms.

Annual Membership and Board of Directors Meeting 

The Annual Membership and Board of Directors Meeting on May 13 was well attended by incoming members of the Board.

The Board unanimously approved the 2025 Officers nominations and AWO President & CEO Jennifer Carpenter officially enrolled the Board of Directors for 2025 – 2026. Patrick Sutton, Senior Vice President, Business Development and Planning, American Commercial Barge Line (ACBL), was elected Chairman of the Board of Directors; Matt Woodruff, Vice President of Public & Government Affairs, Kirby Corporation, was elected Vice Chairman; and Brian Hughes, Vice President Operations & Sales, Hughes Bros. Inc., was re-elected Treasurer. Mr. Sutton succeeds outgoing Chair Kelly Teichman, Executive Chairman, T&T Marine.

In his Chairman’s remarks, Patrick emphasized the importance of adaptability and unity in today’s environment saying, “We need to speak as one unified, strategic voice” using the diverse expertise and strengths of AWO members to overcome challenges and seize opportunities. He outlined key priorities for the upcoming year, including maintaining safety as the highest priority, advocating for the Jones Act, and fostering a supportive regulatory environment. He concluded by urging members to engage actively to navigate the changing landscape and continue growing the industry.

In her President’s Report, Jennifer Carpenter provided a big-picture overview of AWO’s “first 100 days” focus in 2025: to move out quickly and decisively to meet the moment at an extraordinarily dynamic time. Externally, AWO has focused on outreach to leaders and Members of the 119th Congress and Trump Administration officials; close connectivity to the Coast Guard; leveling up its state advocacy efforts; and leading the American Maritime Partnership at a consequential time for the Jones Act. Internally, AWO has focused on launching implementation of the association’s new strategic plan, expanding and strengthening the legislative affairs department, giving members new tools to maximize their effectiveness, and prioritizing staff communication and cross-pollination. Jennifer emphasized the critical role of the Board of Directors in providing strategic direction and resources to support AWO’s long-term success and serving as guardians and stewards of AWO’s culture and the vanguard of its advocacy, safety and public affairs efforts.

Education Sessions Recap. On Tuesday afternoon, May 13, Spring Convention attendees heard from guest speakers on timely topics including trade policy, strengthening and expanding the American maritime industry, and the Coast Guard’s current areas of focus.

Trade Policy: Impacts to the Domestic Maritime Industry. Representatives from K&L Gates, the National Grain and Feed Association (NGFA), and the American Association of Port Authorities (AAPA) joined AWO's Counsel & Director of Government Affairs, Patrick Parsons, in a panel discussion on the impact of the Trump Administration's trade policies on the domestic maritime industry. This forum highlighted the evolving nature of U.S. trade policies and their impact on AWO members through changes to exports, agricultural trade, and port operations.

Key to the discussion was the Office of the U.S. Trade Representative's Section 301 investigation into China's maritime and shipbuilding practices, which led to proposed ship fees and other measures aimed at countering those unfair practices. NGFA members had raised alarms over portions of the original USTR proposal that could have hindered grain exports. Changes in the final proposal addressed many of those concerns, but there is still significant uncertainty as to how the proposed actions will impact trade, on which NGFA is seeking clarity from the Trump Administration.

Ports are also navigating the financial and operational challenges presented by the Section 301 fees and broader tariffs instituted by the Administration. The panel observed that these measures, while aimed at enhancing U.S. maritime competitiveness, also present challenges such as tonnage cost increases and cargo shifts. A significant area of concern includes tariffs on ship-to-shore cranes -- initially set at 100% and later reduced to 90% -- disproportionately affecting ports reliant on Chinese-made cranes. West Coast ports, in particular, anticipate reduced cargo volumes due to reliance on East Asian trade. The cumulative impact of these tariffs and fees could potentially affect the number of port calls and the need for ship-assist and bunkering services.

Looking forward, the panel underscored both the support and concern surrounding these Section 301 measures. While they aim to strengthen the U.S. maritime industry, uncertainties remain as Customs and Border Protection prepares to implement these policies. Industry leaders highlighted the need for clear guidance and continued dialogue to mitigate potential disruptions and navigate the future effectively.

Maritime Matters: An Emerging Bipartisan Policy Consensus. Jennifer Carpenter was joined by Mike Roberts, Senior Fellow at the Hudson Institute’s Center for Defense Concepts and Technology, to discuss developments in U.S. maritime policy, including President Trump’s Executive Order on Restoring American Maritime Dominance and reintroduction of the SHIPS for America Act.

As context for these developments, Mr. Roberts explained that following the end of the Cold War, the United States and many other nations thought of shipping solely as a commodity, rather than as a vital component of national security. This approach created a reliance on cheap shipbuilding and low labor costs in pursuit of lower rates which led to an ever-increasing reliance on Chinese shipping companies and Chinese-built ships heavily subsidized by the Chinese government. He highlighted the international market’s reliance on Chinese ships, noting that China has over 200 times the shipbuilding capacity of the U.S. and controls 75% of the market share internationally. China’s navy will also soon be double the size of America’s Navy with China ordering 3 navy ships for every 1 the U.S. has on order.

Carpenter and Roberts observed that while the current outlook is cause for concern, the SHIPS for America Act is an important opportunity to recapitalize and grow the American maritime industry. Expanding America’s international vessel fleet, the focus of the law, will further strengthen domestic shipbuilding capabilities, supporting a robust industry and providing vital national security protections.

The discussion concluded with an emphasis on the Jones Act’s value to America’s economy and national security, and the law’s alignment with the Trump Administration’s worldview and goals.

Admiral Arguin Reiterates Coast Guard Commitment to Partnership with AWO, Towing Industry. Standing in for Sean Plankey, Senior Advisor to the Secretary of Homeland Security for the Coast Guard, who had a last-minute schedule conflict, RADM Wayne Arguin, the U.S. Coast Guard’s Assistant Commandant for Prevention Policy, addressed AWO members at a dynamic time for the service, providing his perspective on its strategic direction and areas of focus under President Trump’s leadership. He pledged that the redeployment of Coast Guard personnel and assets due to the President’s focus on border security would not impact marine safety and vessel inspection services. He also previewed Force Design 2028, an initiative to prepare the Coast Guard for the challenges and missions of the future, which will seek to add 15,000 service members and reform internal agency processes.

In addition, RADM Arguin discussed specific presidential priorities being implemented by the Coast Guard. In accordance with President Trump’s Executive Order on Restoring America’s Maritime Dominance, the Coast Guard is participating in the development of a comprehensive Maritime Action Plan, which is expected to be finalized by October. He also described the Coast Guard’s efforts to identify rules and policy for repeal or reform in response to the President’s directives to reduce regulatory burdens, and updated AWO members on the NAVITA project to use technology to transform the mariner credentialing process.

AWO looks forward to continued collaboration with the Coast Guard on these issues under the leadership of Commandant Kevin Lunday and the new team announced by DHS Secretary Noem on May 21.

AWO Holds 2025 Barge-In. 156 AWO tugboat, towboat and barge industry ambassadors took to Capitol Hill on Wednesday, May 14 to meet with 232 lawmakers as part of the 2025 Barge-In. Covering 40 states, members held 74 meetings with Senate offices and 158 with Members and staff from the House of Representatives. In addition to building bipartisan support for the Jones Act, AWO members urged lawmakers to restore the U.S. Equal Employment Opportunity Commission’s (EEOC) primary jurisdiction to investigate allegations of unlawful harassment and adopt proposals to strengthen navigation safety on the inland and coastal waterways.

Enjoying the Nation’s Capital. Thank you to all of our members and guests for attending this year's Spring Convention & Barge-In. In addition to the educational sessions and advocacy day on Capitol Hill, members enjoyed social opportunities to network with other AWO members and guests.

We appreciate our sponsors for making these opportunities possible. Thank you to Blessey Marine Services and Karl Senner for sponsoring the Welcome Reception on Monday, Hughes Bros. for leading the Monument Run/Walk, T&T Marine Salvage for sponsoring the Social Dinner on Tuesday, and Moran Towing and PSC Group for providing the so-helpful-to-get-through-the-day coffee breaks!

AWO Implements Self-Check-In System. Thanks to our members who attended Spring Convention and used our new self-check-in kiosks! Members scanned a QR code or searched by their name to check in for the event and print their name badge. This system enables AWO to better track member engagement, improve event planning, and continue to tailor our events to fit your needs. We checked in 154 attendees from Monday afternoon through Tuesday. We look forward to using this data to continuously improve your experience!

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