Saving Seafood

Feds accuse Alaska seafood transporters of ‘secret scheme’ to evade the Jones Act using 100-foot rail line

September 16, 2021 — Attorneys with the U.S. Department of Justice are accusing companies Kloosterboer International Forwarding and Alaska Reefer Management of secretly using a specially built rail track in Canada for years, in order to evade the requirements of a maritime shipping law called the Jones Act.

The accusation surfaced in a filing submitted Friday in a case involving the two companies, which help transport Alaska seafood to the East Coast. The companies potentially face massive fines, imposed by the U.S. Customs and Border Protection.

The government’s 43-page response is its first public explanation in the case brought by Kloosterboer and Alaska Reefer Management early this month in U.S. District Court in Anchorage. The two companies provide transportation and logistics services as part of the American Seafoods Group family.

The companies are suing the Department of Homeland Security and its division, Customs and Border Protection, to stop the large penalty notices, which they say arrived without warning.

Read the full story at the Anchorage Daily News

 

“A calculated and secret scheme”: US CBP alleges willful Jones Act violations by pollock transporters

September 15, 2021 — The U.S. government accused the operators and clients of a dead-end rail line in New Brunswick, Canada, used in transporting Alaska pollock to the U.S. East Coast, of engaging in “a calculated and secret scheme” to escape the restrictions of the Jones Act, which requires all domestically-caught seafood to be transported via vessels built in the United States with U.S. materials.

The filing in a U.S. District Court in Alaska on 14 September came in response to a lawsuit from American Seafoods subsidiary Alaska Reefer Management (ARM) and the company that operates the New Brunswick facility, Lineage Logistics subsidiary Kloosterboer International Forwarding (KIF), challenging approximately USD 350 million (EUR 294.3 million) in fines issued by U.S. Customs and Border Protection against them and their contracted transportation partners. The suit was filed on 2 September.

Read the full story at Seafood Source

 

CBP issues USD 350 million in Jones Act fines, threatening Alaskan seafood trade

September 7, 2021 — U.S. Customs and Border Protection has issued approximately USD 350 million (EUR 294.3 million) in fines against American Seafoods and other companies associated with the company’s supply chain.

The fines, which were all issued in August 2021, apparently relate to the use of an intermodal facility in the Canadian province of New Brunswick that is used to transport Alaskan seafood to the U.S. East Coast.

Read the full story at SeafoodSource

 

Recent Offshore Wind Changes Offer Promise for Protection of Domestic Fishing

December 17, 2020 — Change is in the wind as three developments have modified the seascape for offshore wind in favor of fisheries.

Defense legislation affirming Jones Act compliance for offshore projects, a decision affecting the Massachusetts-planned Vineyard Wind project and an interior legal memo all help reinforce the importance of fisheries and domestic business when offshore wind projects are proposed.

Read the full story at Seafood News

Jones Act changes would ‘jeopardise countless US jobs’ in offshore wind

December 3, 2019 — US fisheries advocacy body the Fisheries Survival Fund (FSF) has claimed proposed changes to the Jones Act – requiring that cargo, including wind turbines, shipped between US ports be transported on American-flagged vessels – could cost ‘countless of job opportunities’ to local companies in the rapidly emerging Northeast Atlantic offshore wind sector.

Writing to US Customs and Border Protection (CBP) to voice it opposition to the “new interpretations” of the law – which would flex the legislation to allow offshore wind developers to shuttle components to a project site on non-US-owned vessels, FSF said such a move would “allow foreign developers to use foreign vessels for the rapid build-out of offshore wind farms [and would] jeopardise” the economic development potential to local contractors.

“These proposed modifications would place foreign-owned offshore wind energy companies at a unique advantage not afforded to the thousands of US-owned maritime industries, including commercial fisheries,” said FSF counsel David Frulla.

“FSF is not submitting this letter to oppose offshore wind energy development in its entirety. If there is a need for some form of modification to these requirements, those modifications should be narrowly tailored to meet those needs … and they should consider the impacts on our domestic maritime industries and coastal communities in so doing.”

Read the full story at Recharge News

Fisheries Survival Fund warns changes to Jones Act interpretation give foreign offshore wind companies advantage over U.S. maritime industries

December 2, 2019 (Saving Seafood) — WASHINGTON — The Fisheries Survival Fund (FSF) submitted a letter to the U.S. Customs and Border Protection (CBP) late last month warning against a proposed new interpretation of the Jones Act that would allow foreign wind energy developers to use foreign vessels for the rapid build-out of offshore wind farms. For nearly a century, commercial fishermen have been required to use domestic manufacturing for construction of their scallop vessels due to Jones Act requirements, FSF wrote.

FSF, which represents the vast majority of full-time Limited Access permit holders in the Atlantic scallop fishery, wrote that the proposed modifications “would place foreign-owned offshore wind energy companies at a unique advantage not afforded to the thousands of U.S.-owned maritime industries” and “would jeopardize the countless job opportunities for domestic laborers who would otherwise benefit from the build-out of offshore wind facilities.”

In its letter, FSF emphasized that is has been actively engaged in the public input process for the planning and development of offshore wind leases, and has worked with both government agencies and offshore wind developers to better understand and reduce the potential impacts of offshore wind development.

The Responsible Offshore Development Alliance (RODA) also wrote to CBP expressing “serious concern” over the proposed modifications.

Read FSF’s full letter here

Coast Guard gives approval to America’s Finest Jones Act waiver

January 18, 2019 — The U.S. Coast Guard has signed off on a Jones Act waiver for America’s Finest, a USD 75 million (EUR 65.8 million) vessel commissioned by Fishermen’s Finest, according to a press release issued by U.S. Rep. Rick Larsen (D-Washington) earlier this month.

That means the boat built by Dakota Creek Industries is free to fish in U.S. waters and deliver products to American ports.

“The Coast Guard worked hard to create a thorough report absolving Dakota Creek and giving the green light to the America’s Finest vessel,” said Larsen in the statement. “The employees at Dakota Creek support a job-creating industry that strengthens national defense and fosters innovation and contributes to the maritime economy in Washington state and Alaska. I am proud to be a part of giving the hard working employees at Dakota Creek a stronger future.”

Read the full story at Seafood Source

Trump signs Coast Guard bill into law, includes Jones Act waiver for America’s Finest

December 6, 2018 — When Dakota Creek Industries took America’s Finest out for its first sea trial on Tuesday 4 December, it looked like the 264-foot vessel was taking a victory lap.

The Anacortes, Washington-based shipbuilder held an event that day to celebrate the Jones Act waiver elected officials were able to get for the processor-trawler. Later in the day, U.S. President Donald Trump signed the Coast Guard Authorization Act, which contained the labor provision, into law.

The process itself is not quite finished. The Coast Guard will get 30 days to review information to make sure neither Dakota Creek nor Fishermen’s Finest – the company that commissioned construction of the USD 75 million (EUR 65.9 million) vessel – committed a deliberate violation of the Jones Act in building the ship.

Coast Guard officials did not return a request for comment.

Read the full story at Seafood Source

House passes US Coast Guard bill with Jones Act exemption for America’s Finest

November 29, 2018 — The US House of Representatives has passed a US Coast Guard reauthorization bill that includes provisions allowing Alaska’s Amendment 80 fleet to finally gain the use of one of its newest vessels while also protecting shrimpers in the Gulf of Mexico from being fined by the Environmental Protection Agency (EPA) for cleaning off their decks.

The Frank LoBiondo Coast Guard Authorization Act of 2018, S. 140, was passed by a unanimous voice vote late Tuesday, moving the two-year, $10 billion bill named after a retiring New Jersey congressman to president Donald Trump’s desk for a signature. The action happened with just a few weeks to spare in the 115th Congress.

The legislation passed the US Senate back on Nov. 14 by a 94-6 tally, as reported by Undercurrent News.

Included in S. 140 is a long-anticipated Jones Act waiver for America’s Finest, a 264-foot catcher-processor built by Dakota Creek Industries in Anacortes, Washington, for Kirkland, Washington-based Fishermen’s Finest at a cost of about $75 million. More than 7% of the ship’s hull contains steel from the Netherlands, which violates the Jones Act requirement that US fishing vessels be made of no more than 1.5% foreign steel.

The provision, which allows Fishermen’s Finest to use the vessel to replace American No. 1, a 39-year-old, 160-foot vessel, was fought for by senator Maria Cantwell and representative Rick Larsen, both Washington state Democrats, with cooperation from senator Dan Sullivan and representative Don Young, both Alaska Republicans

Read the full story at Undercurrent News

US Senate votes to free Fishermen’s Finest from Jones Act purgatory

November 15, 2018 — It’s been years since Kirkland, Washington-based commercial harvester Fishermen’s Finest commissioned Dakota Creek Industries, in nearby Anacortes, at a cost of $74 million, to build it a new, 264-foot catcher processor to work the seas of Alaska. To both companies’ misfortunes, the vessel was constructed with more than 7% of its steel coming from the Netherlands, a violation of the 1920 Jones Act, which allows vessels to contain no more than 1.5% foreign steel.

After Wednesday’s vote by the US Senate, however, that vessel – America’s Finest – is just one step away from being freed from its moors and able to do its job.

The upper chamber voted 94-6 to pass S. 140, a bill used as a vehicle to reauthorize the US Coast Guard. Most importantly, tucked deep inside the bill, in section 835, is a provision fought for by senator Maria Cantwell, a state of Washington Democrat, that would provide an exemption to the Jones Act for Fishermen’s Finest.

“I’m a very strong supporter of the Jones Act and believe it is important that we continue to have the Jones Act in the future,” Cantwell said after the vote. “I also believe that we were able to work with a solution to save good family-wage jobs at the Dakota Creek Shipyard and appreciate my colleagues working on the incorporation of that language.”

Five of the six senators to vote against the bill were Democrats: Ben Cardin (Maryland), Kirstin Gillibrand (New York), Kamala Harris (California), Chuck Schumer (New York) and Chris Van Hollen (Maryland), Independent Bernie Sanders was also a “nay” vote.

Read the full story at Undercurrent News