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[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 32 Introduced in Senate (IS)]

106th CONGRESS
  1st Session
S. RES. 32

  To express the sense of the Senate reaffirming the cargo preference 
                      policy of the United States.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            February 4, 1999

 Mr. Inouye submitted the following resolution; which was referred to 
         the Committee on Commerce, Science, and Transportation

_______________________________________________________________________

                               RESOLUTION

 
  To express the sense of the Senate reaffirming the cargo preference 
                      policy of the United States.

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 Operation Desert Shield and 
        Operation 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 certain percentage of government-impelled cargo to be 
        carried on United States-flag vessels;
Whereas when Congress enacted Federal cargo reservation laws Congress 
        contemplated that Federal agencies would incur higher program costs to 
        use the United States-flag vessels required under such laws;
Whereas section 2631 of title 10, United States Code, requires that all United 
        States military cargo be carried on United States-flag vessels;
Whereas Federal law requires that cargo purchased with loan funds and guarantees 
        from the Export-Import Bank of the United States established under 
        section 635 of title 12, United States Code, be carried on United 
        States-flag vessels;
Whereas section 901b of the Merchant Marine Act, 1936 (46 U.S.C. App. 1241f) 
        requires that 75 percent of the gross tonnage of certain agricultural 
        exports that are the subject of an export activity of the Commodity 
        Credit Corporation or the Secretary of Agriculture be carried on United 
        States-flag vessels;
Whereas section 901(b) of such Act (46 U.S.C. App. 1241(b)) requires that at 
        least 50 percent of the gross tonnage of other ocean borne cargo 
        generated directly or indirectly by the Federal Government be carried on 
        United States-flag vessels;
Whereas cargo reservation programs are very important for the shipowners of the 
        United States who require compensation for maintaining a United States-
        flag fleet;
Whereas the United States-flag vessels that carry reserved cargo provide quality 
        jobs for seafarers of the United States;
Whereas, according to the most recent statistics from the Maritime 
        Administration, in 1997, cargo reservation programs generated 
        $900,000,000 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 Federal cargo reservation 
        laws is declining and will continue to decline;
Whereas, in 1970, Congress found that the degree of compliance by Federal 
        agencies with the requirements of the cargo reservation laws was 
        chaotic, uneven, and varied from agency to agency;
Whereas, to ensure maximum compliance by all agencies with Federal cargo 
        reservation laws, Congress enacted the Merchant Marine Act of 1970 
        (Public Law 91-469) to centralize monitoring and compliance authority 
        for all cargo reservation programs in the Maritime Administration;
Whereas, notwithstanding section 901(b) of the Merchant Marine Act, 1936 (46 
        U.S.C. App. 1241(b)), and the purpose and policy of the Federal cargo 
        reservation programs, compliance by Federal agencies with Federal cargo 
        reservation laws continues to be inadequate;
Whereas the Maritime Administrator cited the limited enforcement powers of the 
        Maritime Administration with respect to Federal agencies that fail to 
        comply with section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. 
        App. 1241(b)) and other Federal 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
    Resolved, That it is the sense of the Senate that--
            (1) each Federal agency shall administer programs of the 
        Federal agency that are subject to Federal cargo reservation 
        laws (including regulations of the Maritime Administration) to 
        ensure that such programs are in compliance with the intent and 
        purpose of such cargo reservation laws; and
            (2) the Maritime Administration shall closely and strictly 
        monitor any cargo that is subject to such cargo reservation 
        laws and shall provide directions and decisions to such Federal 
        agencies as will ensure maximum compliance with the cargo 
        preference laws.
                                 <all>
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