MARAD Releases U.S. Flag Fleet Competitiveness Report
The Maritime Administration has released a report examining the factors that significantly impact the competitiveness of U.S.-flag vessels in international transportation markets. Developed from two studies, the report compares U.S. and foreign-flag operating costs, examines impediments to the U.S.-flag registry, and provides industry recommendations for addressing these impediments.
The report gave the following conclusion:
"Regardless of flag, vessel operating costs are a reflection of a global operating environment that is constantly changing in response to a myriad of social, political, and economic pressures. This report, and continued consultations with carriers, are intended to explore the impact of those changes on the operating environment of the U.S.-flag foreign trade fleet. As the roundtable discussions and surveys revealed, carriers reported that the costs of operating under the U.S. flag place them at a competitive disadvantage for the carriage of commercial cargoes in international
Based on the unaudited operating cost data provided to the Agency by U.S.-flag carriers, the total average cost of operating a U.S.-flag vessel in foreign trade is estimated to be 2.7 times higher, on average, than foreign-flag equivalents. The operating cost data available to the Maritime Administration, as well as the additional information laid out in this report, allow the Agency to better understand, monitor and promote the competitiveness of U.S.-flag carriers. The information will also be used to inform future U.S. maritime policy."
To read the full report CLICK HERE
SOURCE: U.S. Department of Transportation