They will carry military supplies where needed as well as essential imports and exports during wartime. By contracting with the owners and operators of U.S.-flag commercial ships employing U.S. citizen crews, the U.S. government has access to a fleet of vessels at a reduced cost to the government. The vessels are militarily useful and are under contract with the government to be available to carry sustainment supplies and other military equipment to troops in areas of conflict. The Maritime Security Act authorizes funding for up to 47 vessels. The MSP is one half the annual cost of the old operating-differential subsidy program, which is being phased out.
Carriers now have the flexibility to operate freely in the competitive world market.
Trade route and service restrictions required under the operating-differential subsidy program have been eliminated. No new contracts will be awarded under the old program. Participating shipowners must enroll in an Emergency Preparedness Program established to provide sealift support in time of war or national emergency at the request of the Secretary of Defense. The commercial transportation resources to be provided include ships, capacity, intermodal equipment, terminal facilities, communications and cargo tracking systems, and management services. Commercially and militarily useful ships.