III

103D CONGRESS

1ST SESSION S. RES. 95

To reaffirm cargo preference policy.

IN THE SENATE OF THE UNITED STATES

APRIL 19, 1993

Mr. INOUYE submitted the following resolution; which was referred to the

Committee on Commerce, Science, and Transportation

RESOLUTION

To reaffirm cargo preference policy.

Whereas the maritime policy of the United States expressly

provides that the United States have a Merchant Marine

sufficient to carry a substantial portion of the international waterborne commerce of the United States;

Whereas the maritime policy of the United States expressly

provides that the United States have a Merchant Marine

sufficient to serve as a fourth arm of defense in time of

war and national emergency;

Whereas the Federal Government has expressly recognized

the vital role of the United States Merchant Marine during Operations Desert Shield and Desert Storm;

Whereas cargo reservation programs of Federal agencies are

intended to support the privately owned and operated

United States-flag Merchant Marine by requiring a cer-
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tain percentage of Government-impelled cargo to be carried on United States-flag vessels;

Whereas when Congress enacted these reservation laws it

contemplated that the Federal agencies would incur higher program costs to use the required United States-flag

vessels;

Whereas Federal laws require that all United States military

cargo (the Act of 1904), all cargo purchased with all loan

funds and guarantees from the Eximbank (Public Resolution 17), 75 percent of concessionary agricultural cargo

and at least 50 percent of all other international ocean

borne cargo generated directly or indirectly by the Federal Government be carried on United States-flag vessels

(Public Law 99–198 and Public Law 83–664);

Whereas cargo reservation programs are very important for

United States ship owners who require compensation for

maintaining a United States-flag fleet;

Whereas the United States-flag vessels which carry reserved

cargo provide quality jobs for American seafarers;

Whereas, according to the latest statistics from the Maritime

Administration, in 1990, cargo reservation programs generated $2,400,000,000 in revenue to the United States

fleet and accounted for one-third of all revenue from

United States-flag foreign trade cargo;

Whereas the Maritime Administration has indicated that the

total volume of cargoes moving under the programs subject to cargo reservation is declining and will continue to

do so;

Whereas, in 1970, Congress found that the degree of agency

compliance with the requirements of the cargo reserva-
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SRES 95 IS

tion laws was chaotic, uneven, and varied from agency to

agency;

Whereas, to ensure maximum compliance by all agencies,

Congress in 1970 enacted Public Law 91–469, which

centralized monitoring and compliance authority for all

cargo reservation programs in the Maritime Administration;

Whereas, notwithstanding Public Law 83–664, and the purpose and policy of the cargo reservation programs, agency

compliance continues to be uneven;

Whereas the Maritime Administrator cited his agency’s limited enforcement powers over government agencies which

do not comply with Public Law 83–664 and other cargo

reservation laws; and

Whereas the Maritime Administrator recommended that Congress grant the Maritime Administration the authority to

settle any cargo reservation disputes that may arise between a ship operator and a Federal agency: Now, therefore, be it

1 Resolved, That it is the sense of the Senate that all

2 Federal agencies administer their programs to ensure they

3 are in maximum compliance with the intent and purpose

4 of all cargo reservation laws and regulations of the Mari5 time Administration; and that the Maritime Administra6 tion closely and strictly monitor cargoes subject to reserva7 tion laws.

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