USA Maritime strongly supports existing cargo preference laws and existing cargo preference regulations. Cargo preference is a necessary and cost-efficient way to sustain the privately owned U.S.-flag commercial fleet, which is a critical national defense asset. Without cargo preference, the U.S. Government would have to spend far in excess of the cost of cargo preference in direct spending to replicate the national security capabilities of the privately owned U.S.-flag commercial fleet. The history of cargo preference administration indicates that cargo reservation requirements are often not self-enforcing and strict MARAD oversight is necessary to ensure that the law is followed and its purposes fulfilled across the U.S. Government. Now, more than ever, rigorous enforcement of cargo preference requirements is needed to preserve and grow the existing fleet of militarily useful U.S.-flag oceangoing vessels. Through this regulatory review, MARAD has an opportunity to improve its oversight of cargo preference requirements and thereby achieve its mission of promoting the U.S. merchant marine by increasing the amount of U.S. Government-impelled cargo carried by U.S.-flag vessels.
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