Connaughton to Head Federal Maritime Commission?

President Bush signals his intent to nominate MARAD's most effective administrator in recent memory to another federal post; announcement leaves industry observers wondering if, how and why…

In case you missed the news – and I am quite sure that you didn't – President George Bush has announced on Tuesday his intention to nominate MARAD Administrator Sean Connaughton to be Commissioner of the Federal Maritime Commission and upon appointment, designate Chairman. The nomination is a good one and in general terms, potentially seats a commissioner who has an excellent grasp of the maritime business. But, according to several well-placed Washington insiders, the news also should be filed under the general heading of, "Not so fast…"

If confirmed by the U.S. Senate, Connaughton could serve out the remainder of a five-year term, expiring in June of 2012. And, with just four months left on the likely balance of his tenure as U.S. Maritime Administrator, the move would make a lot of sense for Connaughton – and U.S. maritime policy in general. In terms of stature, the position is probably a small step up in terms of influence, especially if he is named Chairman. But MarEx sources in Washington this week said that as good a choice as Connaughton might be for the role, he is unlikely to get a hearing before the Congressional recess at the end of September. After that, Democrats who control the fate of the nomination would be unwilling in any event to hold a hearing before the new President is sworn in. Here's why:

Typically, the makeup of the commission includes two Republicans and two Democrats, along with a chairperson. Currently, with two openings, the Democrats enjoy a majority on the commission, until the next two seats are filled. Even assuming that the two vacancies could be filled before the New Year, it is unlikely that Senate Democrats would be willing to put a GOP nominee in the driver's seat until 2012. As one observer, who did not want to be identified, put it, "The timing is not good and the dynamics, even worse."

The Federal Maritime Commission (FMC) is an independent regulatory agency responsible for the regulation of oceanborne transportation in the foreign commerce of the U.S. The principal statutes or statutory provisions administered by the Commission are: the Shipping Act of 1984, the Foreign Shipping Practices Act of 1988, section 19 of the Merchant Marine Act, 1920, and Public Law 89-777. Now, I don't know what all of that means exactly, but I am told that in simple terms, the FMC is the national regulatory body that controls the "competitiveness of ocean shipping."

Taking it a step further, the FMC is a body that takes its fair share of criticism from a number of different fronts. Its perceived effectiveness as a regulatory organization varies from place to place and certainly, this depends on where you sit in the overall marine transportation picture. But, at the end of the day, the general makeup of the commission makes it somewhat of a partisan vehicle. And, in this case, that's a shame.

While it still remains to be seen what will happen, Sean T. Connaughton is the kind of guy that the U.S. government probably ought to hang onto for a while. To be sure, and in four months or so, he'll catch on somewhere. But, if it is not at the federal level involved in maritime affairs, then industry will have lost exactly the kind of advocate that, over time, they've come to know, expect and appreciate at MARAD. – MarEx.

Joseph Keefe is the Managing Editor of THE MARITIME EXECUTIVE. He can be reached at [email protected]


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