THE COMPETITIVE POSITION OF THE U.S. FLAG SHIPPING INDUSTRY

The goal of this study was to evaluate the competitiveness of the U.S. flag shipping industry relative to its foreign flag rivals, and to relate this to specific factors which have a positive or negative impact on competitiveness. By pinpointing and measuring these factors, industry and government will be in a better position to accentuate the positive features and alleviate those that are negative, thus helping to improve the prospects for the U.S. flag industry in the world marketplace. Competitiveness can be approached from various viewpoints. This research approached the measurement of competitiveness fundamentally from the total cost perspective. It asked what is the total underlying cost, on a cargo unit basis, of performing ocean carriage service by U.S. versus foreign flag vessels for given services in given markets. This cost-based approach is optimal for a study of this type because it takes directly into account many of the differences among competing vessels and indirectly encompasses most or all of the important "non-cost" aspects of competitiveness as well. In the course of the research, the liner, neo-bulk, liquid bulk, and dry bulk sectors were examined, and cost comparisons were made between U.S. flag and non-U.S. flag vessel systems. Studies were also done of inland costs, cargo discrimination, and the effect of subsidy programs in various countries. Recommendations are made to improve the competitiveness of the U.S. flag industry, centering on changes in U.S. government maritime programs and regulations.

• Supplemental Notes:
  • Two volume report includes an Executive Summary.
• Corporate Authors:

  Simat, Helliesen and Eichner, Incorporated

  1019 19th Street, NW
  Washington, DC  United States  20036

  Maritime Administration

  Office of Advanced Ship Operations, 1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Authors:
  • Binkley, J
  • Ohmes, R B
• Publication Date: 1979-10

Media Info

• Pagination: n.p.

Subject/Index Terms

• TRT Terms: Analysis; Bulk cargo; Commodities; Competition; Costs; Economic analysis; Economics; Foreign; Freight transportation; Land bridge; Liner shipping; Market surveys; Mathematical models; Operating costs; Shipping; Ships; Statistics; Subsidies; Trade; Transportation
• Uncontrolled Terms: Cost analysis; International competition; Transportation costs
• Old TRIS Terms: Bulk trade flows; Commodity statistics; Market studies; Minibridge economics; Shipping economics; Shipping statistics; Trade statistics
• Subject Areas: Data and Information Technology; Economics; Transportation (General);

Filing Info

• Accession Number: 00319888
• Record Type: Publication
• Report/Paper Numbers: Final Rpt.
• Contract Numbers: DO-A01-78-00-3032
• Files: TRIS, USDOT
• Created Date: Nov 19 1980 12:00AM