Federal Regulations and the Competitiveness of U.S. Liner Ship Operators

The leading US liner ship operators have developed into the first rank of world-class competitors. However, international maritime trade is extremely competitive. Hence, if the US flag operators are to survive in the long run, they cannot be burdened with US government restrictions imposing uncompensated costs that their competitors do not have to carry. Burdens on US operators include high cost US maritime labor, outdated US crewing laws, environmental and safety regulations beyond those faced by competitors, US legal cost barriers to obtaining modern ships and repair services abroad, and restrictive practices imposed by some foreign governments on their operations. At a minimum, the US liner carriers should be able to obtain and operate modern ships on comparable standards to their foreign flag competitors. This would require that Congress grant them the freedom to procure ships and repairs on a worldwide basis without restrictions.