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Congressional Sabotage of the US Shipping Industry


The Death of the US Shipping Industry - Another Casualty of Congressional Interference in Commerce.


We all know about the crippling trade deficit that threatens our future (thank you Congress for the globe-topping corporate income tax that chases manufacturing from our shores).

What we all did not know is that almost all of the transportation of both imports and exports is done utilizing foreign flagged ships.



The US Shipping Industry Didn’t Fall Apart Suddenly. The Decline Has Been a Slow Erosion; a Gradual Chipping Away by Congress with Increases in Regulation and Restrictions over Many Years.



The Following is Courtesy of Fred Nelson, Local Radio Commentator, Eureka, CA.


Hi, Fred Nelson for Community Comment

Walk in to most any type of store now-a-days and you will find an overwhelming portion of the merchandise is made in China.

I have an official souvenir coffee mug purchased from the gift shop onboard the navy destroyer U.S.S. Stethem. - It was made in China.

Most of us know that many major corporations have moved their manufacturing operations overseas due to the high cost of remaining in the United States. Even a new prefab portion of the S.F./Oakland Bay Bridge recently arrived from China.

Stop and think: All those goods must be carried, mostly by ocean going ships, to our shores. Are these United States vessels? Absolutely not!!

  • Currently, 95% of the nation’s overseas trade travels by water.
  • Of that, U.S. flagged vessels carry only 3%!!

According to an article in the Navy League publication “Seapower”, U.S. flagged vessels transported more that 90% of America’s foreign trade in the 19th century.

The total U.S. flagged ships in 2003 fell to 990, many of which were tankers. In 2007 there was very little change in the number of U.S. flagged ships while the world’s total rose to 42,000.


The steady decline of U.S. flagged ships has been going on for many years due to tight government control, a shining example of too much government stifling the ability of American shipping to effectively compete on the world market.

Our nation’s demand for strict guidelines for construction, maintenance, and environmental & safety standards continues to drive up operating costs.


To help the U.S. vessels compete, Congress established laws that some government sponsored cargo be carried on U.S. flagged vessels.

  • Agreements have been made that make U.S. flagged ships available to the U.S. armed services when needed and give the commercial owners priority consideration for the award of peacetime cargo. There is an overall enrollment of 133 ships in two programs which help retain over 2,400 U.S. citizen mariners.
  • Our nation also maintains a Ready Reserve Force, part of the National Defense Reserve Fleet, of no more than fifty vessels, most of which can get underway with five days notice and the remainder within ten days. The Ready Reserve Force employs over 390 American mariners.

It is too bad that we are drawn down to a handful of U.S. flagged vessels which are sorely needed to support America’s defense system while the world trade swirls around us amounting to untold sums of money that we never see.

Government regulations only allow U.S. flagged ships to carry cargo between American ports. An example is ocean shipping between the U.S. west coast and Hawaii. There is little competition to drive down prices. Just ask anyone who has purchased goods of any kind in the Islands.

With the oceans on three sides of us, you would think that people in government would use that position to our economic advantage.


The United States merchant fleet is broken.

Will it ever be fixed? Ask your Congressman.


Fred Nelson for Community Comment