[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. Res. 11 Introduced in Senate (IS)]







107th CONGRESS
  1st Session
S. RES. 11

  Expressing the sense of the Senate reaffirming the cargo preference 
                      policy of the United States.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                            January 22, 2001

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

_______________________________________________________________________

                               RESOLUTION


 
  Expressing 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 shall 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 shall 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 the cargo reservation laws, Congress contemplated 
        that Federal agencies would incur higher program costs to use the United 
        States-flag vessels required under those 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 2 of the Export-Import Bank Act of 1945 (12 U.S.C. 635), be 
        carried on United States-flag vessels;
Whereas section 901(b) of the Merchant Marine Act, 1936 (46 U.S.C. App. 
        1241(b)), requires that at least 50 percent of the gross tonnage of 
        ocean-borne cargo generated directly or indirectly by the Federal 
        Government be carried on United States-flag vessels, and section 901b of 
        that Act (46 U.S.C. App. 1241f) requires that, in the case of such 
        cargoes of certain agricultural commodities that are the subject of an 
        export activity of the Commodity Credit Corporation or the Secretary of 
        Agriculture, an additional 25 percent of the gross tonnage be carried on 
        United States-flag vessels;
Whereas cargo reservation programs are very important for the shipowners of the 
        United States, which require compensation for maintaining a United 
        States-flag fleet;
Whereas the United States-flag vessels that carry reserved cargo provide high-
        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-flag 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 the 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 
        and uneven, and that it 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 (84 
        Stat. 1018), amending the Merchant Marine Act, 1936, 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 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 should administer programs of the 
        Federal agency that are subject to the cargo reservation laws 
        (including regulations of the Maritime Administration) to 
        ensure that the programs are in compliance with the intent and 
        purpose of the cargo reservation laws; and
            (2) the Maritime Administrator should--
                    (A) closely and strictly monitor any cargo that is 
                subject to the cargo reservation laws; and
                    (B) provide such directions and decisions to 
                Federal agencies as will ensure maximum compliance with 
                the cargo preference laws.
                                 <all>