If America is indeed entering an era of “change”, the new administration would do well to look at its present maritime policy. That’s the position taken in a recent paper issued by the Maritime Administration (MARAD), which argues that current policy is not supporting this nation’s participation in a fully globalized industry.
“Current maritime policy is not focused on the maritime system as a whole, and does not consider the role of international and domestic waterborne commerce in national wealth creation,” stated a 72-page study prepared by Global Commerce and the Transport Group at IHS Global Insight. “Nor does it focus fully on the infrastructure needed to ensure that the anticipated volumes of future trade will flow smoothly through the U.S. economy.”
The report echoes sentiments expressed to LM by the American Association of Port Authorities (AAPA), and a number of shipper associations.
The study—“An Evaluation of Maritime Policy in Meeting the Commercial and Security Needs of the United States”—said that due to the legacy of the Merchant Marine Act of 1936, maritime policymaking is heavily focused on the U.S.-flag fleet.
“While the U.S.-flag carrier fleet is an important part of the maritime transportation system, it is only a portion of the whole system, and must be approached with the broader context of maritime freight transport and the free-flow of commerce through out the economy” said analysts.
Approximately 78 percent of all goods by volume that the U.S. sells to or buys from the rest of the world moves by water. International commerce by water affects people and industries throughout the nation, even those located far away from coastal ports. The maritime domain is responsible for thousands of jobs on ships, at ports and their intermodal connectors, shipyards and numerous support industries.
The U.S.-flag oceangoing fleet has been in decline relative to fleets of other nations. Building ships in the U.S. and operating U.S.-flag ships is more costly than building or operating ships in other nations, said analysts.
The study recommends that policy makers better align the multi-modal transportation system—ships, ports, rail, trucking, warehouses—with the needs of the U.S. economy, which relies on a system of global supply chains and a highly complex coordination of people and equipment (source: www.logisticsmgmt.com).
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