Charlie Papavizas Discusses Effect of Transportation Spending Bill on Maritime Industry

Winston & Strawn partner Charlie Papavizas, based in the Washington, D.C. office, was recently quoted in the Journal of Commerce and In These Times regarding the effect of the recently-passed transportation spending bill on the maritime industry.

According to the articles, a one-third cut in U.S.-flag carriers' food aid shipments, hidden within the transportation spending bill recently passed by Congress, threatens to eliminate the need for 16 ships and 640 seafarer jobs. "It's an economic disaster for the U.S.-flag industry," said Mr. Papavizas, who represents USAMaritime, a coalition of U.S.-flag interests. "Less cargo means fewer ships and fewer mariners."

The provision was hastily added to the bill during final negotiations, with no congressional debate, in order to offset costs of unrelated highway projects. However, Mr. Papavizas argues that the loss of U.S. income and taxes for carriers and seafarers will negate any savings. "Is there a real savings? The answer is no, when the loss of economic benefit is factored in," he said.

According to Mr. Papavizas, because the food-aid language was added to the bill with little formal consideration, it should be possible to reverse the measure as part of a future funding bill. He added that the considerable bipartisan support in Congress for the cargo-preference aspect of the food-aid program means it may be possible to change the law before lasting damage is done to the merchant fleet.