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Cargo Preferences for U.S.-Flag Shipping - Background, Considerations, & Food Aid Issues (Hardcover)
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Cargo Preferences for U.S.-Flag Shipping - Background, Considerations, & Food Aid Issues (Hardcover)
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Long-standing U.S. policy has treated the U.S.-flag international
fleet as a naval auxiliary to be available in times of war or
national emergency. When the United States is involved in an
extended military conflict overseas, 90% or more of military
cargoes are typically carried by ship. To support the U.S. merchant
marine, Congress has required that "government-impelled" cargo sent
overseas be carried on U.S.-flag ships. Government-impelled cargo
(a.k.a. "preference cargo") is government-owned cargo, such as
military supplies and food aid, and any cargo that is somehow
financed by the federal government, such as by the Export-Import
Bank. While export shipments account for the vast bulk of
government-impelled cargo, in 2008 Congress extended the law to
require that state and local governments and private entities
importing goods with federal financial assistance ship at least 50%
of such cargo in U.S.-flag vessels. Regulations to implement that
requirement have not been issued. This book explains the motivation
behind cargo preference law, discusses issues concerning the
cost-effectiveness of the program, reviews attempts to apply cargo
preference to the nation's oil trade, and identifies several
disparate bills reflecting wide disagreement on the future
direction of cargo preference policy. The book also examines cargo
preference for food aid's (CPFA) impact on food aid shipping cost
and U.S. agencies' implementation of CPFA requirements, and the
extent to which the implementation of CPFA requirements contributes
to sufficient sealift capacity.
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