Copyright 2002 Journal of Commerce, Inc.  
Journal of Commerce - JoC Week
January 7, 2002
SECTION: SPECIAL REPORT1; Pg.50

LENGTH: 324 words

HEADLINE: AMERICAN ROLL-ON ROLL-OFF CARRIERS

BYLINE: RAYMOND P. EBERLING

BODY:
The U.S.-flag liner shipping industry currently faces a clear-cut sunset scenario, and the sun is sinking fast. The Maritime Security Program has a legislated sunset provision effective August 2005. Absent a new, comprehensive, long-term program finalized within the next two years, what's left of the international liner fleet will likely disappear.The domestic liner fleet does not face a legislated sunset, but the mandatory build-U.S. provision of the Jones Act functions effectively as such. The average age of ships in the domestic liner fleet is 30 years, and they are not likely to be replaced by ships built in U.S. yards at triple world price.

Should anyone care about the disappearance of U.S.-flag shipping?

Although it is a clear lesson of history that to be a great trading nation one must also be a maritime power, it has become fashionable to consider this out-of-date in the new global economy. However, we should also consider that, after a decade of rapid growth, 11 of the top 20 carriers in the world are owned by Asian interests, while there are zero U.S. owners in the group. It has also been a fact of history, and a pillar of traditional U.S. maritime policy, that the U.S. merchant marine functions as the military's fourth arm of defense when called, but this has also been challenged lately. How comfortable will we be with the alternative of total reliance on foreign-flag carriers?

Doing something about this sunset scenario has to begin with, though certainly not end with, a new and bold maritime policy, which provides comprehensive and competitive, promotional, regulatory, and tax policy. We've reached the point where extending this, amending that, and hanging in there won't work. U.S. maritime policy must be freed from its historical anchors and totally refocused on the future.

There are no easy answers; but we could start by acknowledging that we face some very tough unanswered questions.

LOAD-DATE: January 9, 2002