COMPETITIVE MANNING FOR THE INTERNATIONAL U.S.-FLAG FLEET

Lack of competitiveness has resulted in the decrease of the U.S.-flag international merchant fleet. To preserve the U.S.-flag international fleet and provide sufficient sealift capacity in the event of a national emergency, the Operating Differential Subsidy was established by the U.S. Government. By the end of the decade these subsidy payments will be terminated. The economic burden, the premium between the U.S.-flag and foreign-flag vessel, is to be borne solely by the U.S.-flag operator. The result is that the largest U.S.-flag international shipping companies are refusing to accept this burden and are reflagging their vessels. A resurgence of the U.S.- flag international fleet will need to begin with newbuildings, as it is highly unlikely that current foreign-flag vessels would be reflagged to the U.S.-flag. This paper was written to provide operating cost analyses for future newbuildings. Further, the largest segment of the U.S.-flag international fleet is the containership. It is new, state-of- the-art, diesel-powered containerships which would be anticipated to reverse the U.S.-flag decline. Approximately 10% of the intermodal transportation costs for one container shipment are borne by the crew of a U.S.-flag vessel. Given the economic competitive framework the U.S.-flag operator exists within, a large difference in crew costs with his international competitors could exceed his profits. This paper presents the current discrepancies in manning costs in the competitive international liner trade. Current regulations and international crew practices are reviewed to present a theoretical and actual minimum crew with the available technology, The current regulatory and legislative framework the U.S.-flag operator works within is restrictive, placing the U.S.-flag operator at a competitive disadvantage. Based on these projected crew levels combined with the assembled cost data it can be concluded that the U.S.-flag can be competitive with a greatly reduced level of government support: a solution that is hopefully economically and politically feasible.

• Supplemental Notes:
  • SNAME, Trans, v 103, 1995, p 159 [30 p, 28 ref, 6 tab, 17 fig]
• Authors:
  • Weber, P T
  • Marcus, H S
• Publication Date: 1995

Language

• English

Subject/Index Terms

• TRT Terms: Manning requirements
• Geographic Terms: United States
• Old TRIS Terms: Crew costs; Merchant fleets
• Subject Areas: Marine Transportation;

Filing Info

• Accession Number: 00734148
• Record Type: Publication
• Source Agency: British Maritime Technology
• Files: TRIS
• Created Date: Mar 27 1997 12:00AM