Mission. The Maritime Administration (MARAD), an agency of the Department
of Transportation, administers federal laws that foster and maintain a
U.S. merchant marine capable of meeting the nation's shipping needs for
domestic and international waterborne commerce and national security.
MARAD also seeks to ensure that the United States enjoys adequate shipbuilding
and repair services and possesses efficient and adequate port capacity
complemented by effective intermodal water and landside transportation.
The agency promotes the use of U.S.-flag vessels, manages an active reserve
of ships in the Ready Reserve Force (RRF), maintains an inactive inventory
of ships in the National Defense Reserve Fleet (NDRF), and ensures the
availability of a pool of highly skilled merchant marine officers and
With expanding economic globalization, a massive increase in international
trade and cargo--and the corresponding growth in both environmental impacts
and congestion of landside transportation--MARAD has sharpened its focus
on logistics, ports, intermodalism, environmental activities, and international
trade practices. Ensuring environmentally sound transportation to meet
future U.S. national-security and commercial needs requires a well-planned
and truly integrated multimodal transportation system. Moreover, international
standards have become increasingly important in maintaining the integrity
of U.S. commerce and the competitiveness and strength of the U.S. maritime
Historical Perspective. The United States began as a maritime nation.
One of its earliest industries was shipbuilding and, by the middle of
the 19th century, the United States stood alone as the undisputed world
leader in shipbuilding. In those early days, U.S.-flag merchant vessels
transported more than 90 percent of America's foreign trade.
Today, while 95 percent of the nation's huge overseas trade still moves
by water, only about three percent is carried by the U.S.-flag fleet.
This change has disturbing implications for America's national security
and economic vigor. Without a U.S.-flag fleet, the nation's foreign commerce
and its auxiliary sealift capability would depend exclusively on foreign-flag
ships. Auxiliary sealift provided by the U.S.-flag merchant marine played
a vital role in American successes in all of the wars and many of the
national crises in which U.S. forces were involved during the 20th century.
Maritime Security Program. The continued existence of a privately owned
U.S.-flag merchant marine is vital to the nation's military and economic
security. During national emergencies, there is no completely reliable
alternative to the U.S.-flag fleet of commercial ships or to the availability
of trained U.S. citizen crews.
Nearly 80 percent of the military dry cargo transported during the Persian
Gulf conflict was carried on U.S.-flag ships, and more than 30 percent
was carried on commercial U.S.-flag ships as part of normal liner operations
or under time-charter to the Department of Defense (DOD), with no disruption
to commercial service. All of the U.S.-flag ships used by DOD during these
sealift operations were totally crewed by U.S. citizens.
U.S. economic security also benefits from the participation of the U.S.-flag
fleet in the movement of U.S. international trade. Without a U.S.-flag
fleet, the United States, the largest consumer market in the world, as
well as thousands of U.S. importers and exporters, would become entirely
dependent on foreign entities for transportation. The presence of a privately
owned U.S.-flag fleet provides an alternative to foreign-flag carriers,
some of which are government-owned or -controlled and/or have close affiliations
with firms in their own countries that compete with U.S. businesses.
The Maritime Security Act (MSA) of 1996 (Public Law 104-239) established
the Maritime Security Program (MSP) under Title VIA, Subtitle B, of the
Merchant Marine Act of 1936 (the 1936 Act). The MSP is intended to ensure
that an active U.S. merchant fleet, and the trained personnel needed to
operate both active and reserve vessels, will be available to meet future
national-security requirements for sealift capacity. In addition, the
MSP ensures America's continued presence in intermodal commerce and provides
a competitive bulwark against predatory pricing by foreign carriers in
the movement of U.S. import and export commerce.
The MSA established a 10-year, 47-ship program providing fixed annual
federal support payments of $2.1 million per vessel, subject to annual
appropriations, to participant companies. These payments partially offset
the higher costs of operating U.S.-flag liner ships in international trade.
The MSP gives DOD "assured access" to approximately 120,000
TEUs (20-foot equivalent units) of MSP participants' ship capacity and
other intermodal assets. It substantially deregulated previous operating
restrictions placed on U.S. liner operators receiving direct federal support.
The MSP helps fulfill national goals to, among other things:
* Foster and maintain a U.S. merchant marine capable of meeting economic
and national-security requirements;
* Improve the vitality and competitiveness of the U.S. foreign-trade liner
fleet and the U.S. citizen seafarers who serve on board those ships;
* Slow the precipitous decrease in the number of ships in the U.S.-flag
* Stabilize the number of mariners available to crew U.S. merchant vessels;
* Achieve adequate manning of merchant vessels for national-security needs
during mobilization; and
* Guarantee that the United States maintains the capability to respond
unilaterally to security threats in geographic areas not covered by alliance
commitments and otherwise meets sealift requirements in the event of crisis
Voluntary Intermodal Sealift Agreement. The MSA also directed the establishment
of an Emergency Preparedness Program to ensure sealift availability. Under
MARAD's delegated authority in the Defense Production Act of 1950 and
the 1936 Act, as amended, MARAD, in consultation with DOD and the maritime
industry, developed the Voluntary Intermodal Sealift Agreement (VISA).
In January 1997, the Secretary of Defense approved VISA for incorporation
in DOD planning as a sealift readiness program.
VISA's objective is to provide vessel capacity, intermodal movement,
and cargo management for the shipment of DOD emergency cargoes. It serves
as the mechanism that assures the movement of ammunition and resupply
(i.e., "sustainment") cargo, and complements DOD's organic sealift
capabilities used for the initial-deployment ("surge") phase
of a military action. VISA can be activated in three stages, as determined
by DOD, with each stage representing a higher level of capacity commitment.
Currently, Stage I requires 15 percent of total enrolled capacity; Stage
II requires 40 percent; and Stage III requires 15 percent from MSP vessels
(and other vessels receiving federal subsidy), and 50 percent from the
remaining VISA participants.
To ensure coordination in planning and execution, VISA provides for a
Joint Planning Advisory Group, co-chaired by MARAD and the U.S. Transportation
Command, to discuss DOD requirements. Under the terms of VISA, participating
carriers are required to sign contingency agreements with DOD that commit
the appropriate portion of their sealift capacity and intermodal equipment
and determine a rate methodology.
During VISA activation, participants may implement approved carrier coordination
agreements to meet the needs of the Department of Defense and to minimize
the disruption of the participants' services to the economy. VISA provides
a participant with a defense to any civil or criminal action brought under
antitrust laws with respect to actions taken to carry out VISA requirements.
One of the goals of VISA is to ensure that sufficient civilian maritime
resources will be available to meet DOD deployment and essential economic
requirements in support of the U.S. national-security strategy.
The MSP and VISA programs will slow the decline of the U.S.-flag merchant
fleet, but by themselves will not reverse the continuing trend of a reduced
U.S.-flag presence in international ocean transportation.
Another MSA provision ensures that U.S. merchant mariners who are employed
in the activation or operation of government strategic sealift ships in
a contingency may enjoy the same reemployment rights extended long ago
to military Reservists and Guardsmen.
Ready Reserve Force. The Ready Reserve Force (RRF) ensures that the nation
can maintain the surge capability needed to respond unilaterally to security
threats in geographic areas not covered by NATO or other alliance commitments
and to meet other national sealift requirements in the event of war or
other crisis. The RRF fleet guarantees quick-response shipping with 76
vessels designed to meet special military requirements such as in-stream
discharge, the availability of non-unit containerizable equipment, and/or
offshore petroleum delivery.
MARAD keeps RRF ships in designated states of readiness (as determined
by DOD) to enable them to be activated in four, five, 10, or 20 days to
meet military surge sealift requirements. To respond quickly to military
emergencies in any area of the world, RRF vessels in higher states of
readiness--called Reduced Operating Status (ROS)--are outported with small
but highly trained crews on board. Vessels in 10- or 20-day readiness
status are berthed in one of the National Defense Reserve Fleet sites.
MARAD ROS vessels carried out 72-hour sea trials in fiscal year 2002 in
order to more fully test the operational capabilities of the RRF upon
RRF readiness is also tested in "turbo" activations, which
usually are short-interval exercises that include a sea trial when required,
practical, and possible. These sorties are generally of 24 hours duration
and serve to verify vessel material condition and readiness.
During FY 2002, 33 turbo activations were conducted, each of which involved
four or more RRF vessels. The largest, involving all three coasts and
regions, was on 26 August 2002, when ten RRF vessels were called out in
a no-notice test. The turbo activation is the culmination and validation
of the readiness reporting that the regions and ship managers submit weekly
during the year. It should be noted that all RRF vessels successfully
completed the test, with the exception of one RRF ship that experienced
an engine casualty during the associated 72-hour sea trial.
In recent years, RRF vessels have provided DOD with needed surge and
sustainment sealift during several operations involving U.S., NATO, U.N.,
and other allied forces. Among the more important of those operations
were Operation Enduring Freedom (still ongoing) and Operations Desert
Shield/Desert Storm/Desert Sortie in 19901991, when MARAD activated
79 RRF vessels to transport urgently needed supplies and materials to
the Persian Gulf.
The RRF also has supported U.S. and allied operations in Somalia, Haiti,
Bosnia, Croatia, Australia, South Korea, and Central America.
During FY 2002, the auxiliary crane ship SS Cornhusker State was activated
to participate in Operation Enduring Freedom (OEF). The ship, which served
from 5 November 2001 to 1 May 2002, was the only RRF ship activated specifically
to support OEF combat operations in Afghanistan. The Cornhusker State
received MARAD's Professional Ship Award in November 2002.
DOD continued to deploy the RRF's auxiliary crane ship SS Gopher State
in Guam during FY 2002 to support the U.S. Army's Prepositioning Stock
(APS) program. The Offshore Petroleum Discharge System (OPDS) tankers
SS Petersburg and SS Chesapeake also continue to support the Afloat Prepositioning
Force (APF), operating from Guam and Diego Garcia respectively. The SS
Cape Jacob, a breakbulk vessel outfitted with a Modular Cargo Discharge
System (MCDS) for underway cargo transfers, is also on station at Diego
Garcia participating in the APF program.
The SS Cape Gibson was activated at her outport berth in Alameda, Calif.,
transferred to operational control (OPCON) of the Military Sealift Command
(MSC), and sailed to Pearl Harbor, Hawaii, in support of Exercise RIMPAC
02. MSC retained OPCON of the vessel from 23 June to 22 July 2002. During
that period the vessel participated in several Underway Replenishment
(UNREP) exercises with U.S. Navy ships in the waters off the Hawaiian
The RO/RO (roll-on/roll-off) vessel M/V Cape Horn also was activated
in March (at her San Francisco, Calif., outport berth), to support Exercise
Cobra Gold. She participated in the exercise until an onboard incident
involving an engine room fire. Two crew members died in that incident.
Three RRF vessels participated in a Joint Logistics Over Shore (JLOTS)
exercise, Native Atlas 02, from February to April 2002 in the waters off
Camp Pendleton, Calif. Three different classes of RRF vessels were activated
for this exercise, which also involved the construction of: (a) an offshore
pier capable of accommodating the cargo discharge of a RO/RO vessel; and
(b) an Offshore Petroleum Discharge System conduit to expedite pumping
from the RRF OPDS tanker SS Mount Washington to a shoreside storage facility.
The other participating RRF vessels were the SS Cape Mohican (SEABEE)
and the crane ship SS Keystone State (T-ACS 1).
The Ready Reserve Force is a component of the National Defense Reserve
Fleet, which MARAD maintains. The non-RRF ships in the NDRF are operated
infrequently. Many are prepared for long-term storage in a preserved condition;
others are awaiting disposal. The NDRF program was started after World
War II when the Merchant Ships Sales Act of 1946 was enacted. As ships
used during the war were retired, the program grew from 1,421 ships in
the first year to a high of 2,277 ships in 1950. Ship sales, donations,
and disposal efforts have reduced the overall total, but other initiatives
have added a number of newer ships to the program.
Prior to RRF operations, NDRF vessels supported emergency shipping requirements
during crises. During the Korean War, for example, 540 NDRF vessels were
activated to support U.S. military forces. A worldwide tonnage shortfall
from 1951 to 1953 required over 600 ships to be activated to carry coal
to Northern Europe and grain to India. From 1955 through 1964, another
600 ships were used to store grain for the Department of Agriculture.
Another tonnage shortfall following the Suez Canal closing in 1956 caused
223 cargo ships and 29 tankers to be activated. During the Berlin crisis
of 1961, 18 vessels were activated and remained in service until 1970.
The Vietnam War caused 172 vessels to be activated.
As of 30 September 2002, there were 274 vessels in the NDRF; of those,
76 were in the RRF, 65 were in long-term storage, and 133 were ready for
disposal or being prepared for disposal. MARAD has received an appropriation
of $20 million in the FY 2003 budget to dispose of vessels. An additional
29 vessels owned by other government agencies also were being maintained
at NDRF facilities on a cost-reimbursable basis. A total of 303 vessels
were in MARAD custody under the NDRF program at the end of FY 2002.
The fleet's original eight anchorages have been consolidated into three,
where most of the vessels are currently maintained: 95 in the James River
Reserve Fleet (JRRF) at Ft. Eustis, Va.; 44 in the Beaumont Reserve Fleet
(BRF) at Beaumont, Texas; and 92 in the Suisun Bay Reserve Fleet (SBRF)
at Benicia, Calif.
Maritime Heritage. Obsolete parts and equipment from NDRF ships scheduled
for disposal are made available to memorial ship organizations to help
preserve the operational and/or historical character of vessels. During
the last year, 130 transfers were completed, totaling approximately 2,500
items outstanding. The memorial ships Jeremiah O'Brien, Red Oak Victory,
and USS Massachusetts were among the recipients. Long-term loans of historical
artifacts for public display also are made available to worthy organizations;
currently, 586 such items are on long-term loan. Special legislation permits
the donation of vessels for specific historical purposes. No ships were
donated during the last year; however, one donation (Glacier, to the Glacier
Society) was prepared during the year; her transfer to the Society is
expected in early FY 2003.
Training Availability. NDRF vessels also are made available to various
groups for training purposes. Ships in the Reserve Fleet anchorages are
used by the Navy and FBI for military, law-enforcement, and ship-interdiction
training. RRF vessels in standby status at port facilities are often used
for cargo-handling training. A total of 53 separate training events were
held during the year that involved Navy, Army, and Marine Corps cargo-handling
units, as well as stevedores sponsored by the Pacific Maritime Association
(PMA). The same RRF vessels also supported security exercises conducted
by antiterrorism units from both the U.S. Coast Guard and the U.S. Marine
Corps. During FY 2002, RRF vessels provided a total of 135 calendar days
of training support for over 2,000 people.
Port Security. U.S. ports play a major role in U.S. economic development
and national security but, as the terrorist attacks of 11 September 2001
made clear, these ports (and other components of the U.S. transportation
infrastructure) also may be vulnerable, in a variety of ways, to future
terrorist attacks. The Department of Transportation (DOT) focused considerable
effort during the past year, therefore, on ensuring the safety and security
of the U.S. national transportation system and identifying critical components
of the U.S. transportation infrastructure. MARAD was actively involved
in a broad spectrum of DOT security initiatives designed to address vital
security needs. In addition, MARAD conducted extensive discussions with
representatives of the U.S. port industry to determine what actions must
be taken to enhance U.S. port security and to identify any gaps remaining
or issues that need to be addressed.
The DOD Appropriations Act for FY 2002 (Public Law 107-117, H.R. Conf.
Rpt. 107-350) appropriated $93.3 million to the Transportation Security
Administration (TSA) "to award competitive grants to critical national
seaports to finance the cost of enhancing facility and operational security."
Discussions among TSA, MARAD, and the U.S. Coast Guard (USCG) resulted
in an agreement that MARAD and the Coast Guard would serve as agents for
TSA in carrying out this program. Working together, the agencies were
able not only to design and develop the grant process, but also to award
the grants themselves, in only six months. The grant announcement generated
nearly $700 million in grant requests encompassing over 850 port-security
projects. On 17 June, Secretary of Transportation Norman Y. Mineta announced
the award of 79 port-security grants totaling $92.3 million. The grants
fell into two categories:
* Security assessments and mitigation strategies, based on proposed port
or terminal security assessments that ascertained vulnerabilities and
identified mitigation strategies; and
* Enhanced facility and operational security, including but not limited
to facility access control, physical security, and cargo security and
onsideration also was given to "proof-of-concept" demonstration
projects that show how port security would be improved or enhanced by
the projects proposed for implementation.
More specifically, port security grants totaling $5 million were provided
for security assessments; another $78 million was awarded to enhance facility
and operational security, and $9.3 million was allocated for proof-of-concept
projects--which explored, for example, the application of technology such
as electronic seals, vessel tracking, and electronic notification of vessel
arrivals to improve port security.
A unique aspect of the grant program was the creation of a web-based
system to execute the program. The speed with which the program gathered
information and applications and earmarked grant money was unprecedented.
The newly created system allowed applicants to submit their grant applications
electronically and permitted the entire evaluation process to be conducted
on the web. The evaluation process electronically linked all five MARAD
region offices and 47 Coast Guard Captain-of-the-Port offices with MARAD,
USCG, and TSA headquarters staffs. Even after the grants were awarded,
this web-based system continued to play a key role, and will for the foreseeable
future as MARAD administers the Port Security Grants program.
MARAD is working closely with industry and other federal agencies to
assist in addressing the critical challenges that lie ahead. Among the
important issues confronting U.S. ports are the expansion and modernization
of facilities, securing improvement funding and financing, improving port
security, complying with ever stricter environmental regulations, improving
intermodal access, and the dredging and disposing of dredge waste.
MARAD expects the nation's waterborne trade to double in the next 20
years. To meet this projected growth, ports must expand their terminal
facilities. MARAD administers a program that conveys surplus federal property
to state and local public entities for the development and operation of
port facilities. The purpose of this program is to create jobs, revitalize
local economies, and increase port capacity. Since the program's inception,
MARAD has approved five conveyance applications transferring nearly 900
acres of property for port development.
Port Readiness. MARAD is the permanent chair of the National Port Readiness
Network (NPRN), a coalition of nine federal agencies and organizations
directly responsible for supporting the deployment of military forces
through U.S. ports during contingencies and defense emergencies. MARAD
and DOD cooperatively determine the status of strategic ports through
port-planning orders, and also engage in port terminal facility site planning
as well as annual port-readiness exercises. MARAD serves as the strategic
liaison for commercial port operations during actual national-defense
United States Shipbuilding. The shipbuilding industry in the United States
is divided into two distinct segments. One segment is composed of six
major companies that concentrate mainly on the construction of military
vessels; the other segment is composed of more than 300 firms actively
engaged in commercial shipbuilding and/or ship repair. In 2002, MARAD
compiled an electronic catalog of commercial shipbuilding and ship repair
facilities currently in operation in the United States. The catalog, which
lists 354 shipyards in 35 states, may be viewed online at www.marad.dot.gov/nmrec.
U.S. shipbuilding policies and programs have gone through a number of
dramatic changes in the past century; one of the more important programs,
though--the Federal Ship Financing Guarantee Program, known as Title XI--has
been in place since 1938. The primary purpose of Title XI is to promote
the growth and modernization of the U.S. merchant marine and U.S. shipyards.
The National Shipbuilding and Shipyard Conversion Act of 1993, included
in the National Defense Authorization Act of 1993 (Public Law 102-484),
expanded the existing Title XI Federal Ship Financing Program by authorizing
the Secretary of Transportation to guarantee obligations issued to finance
the construction, reconstruction, or reconditioning of eligible export
The Title XI program permits guarantees in an amount not to exceed 87.5
percent of the actual cost of projects eligible for financing. Some eligible
contracts are limited to 75 percent of actual cost. The maximum guarantee
period is 25 years.
During FY 2002, MARAD issued guarantees, totaling approximately $225
million, for eight applicants. The projects approved for financing included
11 ferries, one passenger vessel, six double-hull tank barges, two lift
boats, one offshore drill rig, and one drydock reconstruction.
Economic Impact of Shipbuilding. In 2002, MARAD funded a study, carried
out by the Shipbuilders Council of America, that found that U.S. commercial
shipbuilders have made substantial contributions to the U.S. economy by,
among other things: (a) increasing the U.S. economic output (GDP) by $11.0
billion; (b) creating 147,230 jobs; (c) increasing U.S. personal income
(by $9.4 billion); and (d) increasing federal, state, and local government
tax revenues by $3.4 billion. The job and dollar values listed represent
the economic contributions of the commercial shipbuilding sector. The
total shipbuilding contribution, including the contributions made by military
shipyards, could be more than three times as large; in 1997, the economic
benefits generated from the construction and repair of military vessels
was almost two and a half times the value of the benefits generated by
the construction and repair of commercial ships.
National Maritime Resource and Education Center. The principal mission
of the National Maritime Resource and Education Center (NMREC) is to provide
a centralized and readily accessible source of information for the shipbuilding
industry. The scope of coverage encompasses such topics as domestic and
international shipbuilding standards, activities of the various classification
societies, recent industry developments, shipbuilding business issues,
energy and environmental matters, a calendar of shipbuilding-related events,
recently published technical papers, Title XI information, and other matters
of interest that affect U.S. shipbuilding. This material is available
on the Internet at www.marad.dot.gov/nmrec.
United States Shipping. During 2001, U.S. corporations earned approximately
$3.1 billion in freight and charter revenues from the operations of U.S.-flag
liner vessels, contributing millions of tax dollars for federal, state,
and local governments.
As of July 2002, the U.S.-flag cargo-carrying merchant fleet included
248 self-propelled oceangoing vessels (1,000 gross tons and over) and
70 Great Lakes vessels, including integrated tug barges. Also counted
in the U.S.-flag fleet were over 38,000 other cargo ships, tugs, barges,
passenger ships, and other vessels engaged in domestic waterborne trade.
The United States ranked 12th in the world in the deadweight tonnage of
its operational oceangoing commercial ships. The U.S.-flag share of America's
seaborne foreign trade carried decreased in 2001, though, to 2.4 percent
(from 2.6 percent in 2000). The U.S.-flag percentage of liner trade also
decreased--to 7.1 percent from the previous 8.4 percent--during the same
Even though the number of U.S.-flag oceangoing ships has declined in
recent years, the productivity of the fleet has improved substantially,
thanks primarily to the increased capacity of many ships. The average
capacity of liner vessels in the U.S.-flag fleet today is over 35,000
deadweight tons (dwt). Fleet productivity also has been enhanced by the
development of state-of-the-art intermodal systems that provide seamless,
door-to-door, just-in-time transportation worldwide. These advances also
have been applied to the movement of military shipments and have resulted
in significantly improved coordination and speed in the delivery of DOD
Cargo Preference. Because of higher U.S. construction, maintenance, environmental,
and safety standards, it almost always costs more to operate U.S.-flag
vessels than it does to operate foreign-flag ships. There is limited direct
U.S. government assistance to help support a minimal liner fleet.
Since 1904 the Congress has enacted a series of so-called "cargo-preference
laws" to provide economic incentives to shipowners to keep their
ships under U.S. registry. When the government provides a benefit to help
an American industry export U.S.-made products, it often establishes a
"quid pro quo" that requires that a certain portion of the exports
be carried on U.S.-flag vessels (when such vessels are available at fair
and reasonable rates). Two or more industries therefore are assisted at
the same time. Cargo-preference laws generate about $950 million per year
of base-cargo revenue for U.S.-flag vessels. The government recaptures
a portion of the added cost: (a) through taxes on the total gross revenue;
and (b) on the taxes generated as that total gross revenue flows through
the American economy. Without the combination of the limited direct subsidy
(discussed below) and the cargo-preference laws, the already much-diminished
U.S.-flag foreign trade fleet might well disappear completely. In a continuing
effort to promote and heighten public awareness of the U.S.-flag merchant
marine, MARAD has developed a new web site (www.marad.dot.gov/usflag)
that makes it easier for exporters, importers, and government agencies
to find U.S.-flag ships to transport cargo to or from foreign nations.
Jones Act. MARAD continues to emphasize the importance of the Jones Act
to America's national security by, among other things, guaranteeing U.S.
control of essential transportation assets in both peace and war. The
Jones Act ensures that U.S.-owned, crewed, and U.S.-built ships will be
available to transport domestic cargo during war or other national emergency.
MARAD is proactive in the advancement of Jones Act trade by providing
a compliance assistance program to shippers looking for coastal-qualified
War Risk Insurance. MARAD administers the standby emergency War Risk
Insurance Program in accordance with the statutory authority provided
by Title XII of the Merchant Marine Act of 1936, as amended. The program
encourages the continued flow of U.S. foreign commerce during periods
when commercial insurance cannot be obtained on reasonable terms and conditions.
It does this primarily by protecting vessel operators and seafarers against
losses resulting from war or warlike actions.
As of 30 September 2002, the War Risk Revolving Fund (fund) asset total
was approximately $37,000,000. There were 13 new "assureds,"
receiving 135 new binders, during FY 2002. The fund earned $1,800,000
in investment income. Program expenses for FY 2002 were a modest $46,500.
Also as of 30 September 2002, there were 356 binders on vessels and barges
providing eligibility for hull, protection, and indemnity, and second
seamen's war-risk insurance. No binders related to MARAD's standby war-risk
cargo insurance and builder's risk insurance programs have been issued.
All binders are effective for 30 days following an automatic termination
of commercial insurance.
Ship Operations Cooperative Program. The Ship Operations Cooperative
Program (SOCP) brings together U.S.-based maritime organizations to address
common problems and to develop products that satisfy its members' common
needs. Members work in unison to achieve improved safety, efficiency,
and environmental protection of ship operations. Projects include collaborative
work on the International Maritime Information Safety System (IMISS);
video and CD-ROM productions on topics directly related to Standards of
Training, Certification, and Watchkeeping Convention (STCW); mariner training
requirements; and Alternative Watch Schedules. In addition, SOCP has introduced
technologies with the potential for reducing the costs of maintaining
shipboard equipment as well as preventing equipment failure.
Maritime Labor and Training. The importance of labor to U.S. economic
growth and national security is reflected in MARAD's commitment to foster
a sufficient, well-qualified, and safety-conscious maritime work force.
Through support of programs to improve the education, training, health,
welfare, and safety of U.S. citizen seafarers, MARAD is working to ensure
the availability of an adequate number of mariners to crew active U.S.-flag
commercial vessels during peacetime and in emergencies, as well as RRF
ships activated for sealift and/or humanitarian-assistance missions.
Maritime Issues and Challenges. Balancing the need for greater maritime
security with the realities of commercial shipping operations is the clearest
and most important challenge facing the American maritime industry.
One important initiative is the emphasis on short-sea shipping, also
known as coastwise shipping, which will begin to take hold in 2003 in
the northeastern part of the United States. The congestion along Interstate
5, the I-95 corridor, and other major interstate highways has forced transportation
planners to look at the nation's coastal regions as an alternative that
would move freight from the nation's crowded highways and railways and
onto the waterways. Short-sea shipping might well represent, therefore,
not only the future of the Jones Act, but also the vibrancy and viability
of a national Marine Transportation System (MTS) network--one that extends
not only throughout the United States, but into Canada and Mexico as well.
On the international front, MARAD is continuing discussions with the
People's Republic of China to reconsider the implementation of restrictive
policies embodied in the Regulations on International Maritime Transportation
issued in December 2001. These regulations caught the attention of the
international transport community from carriers to non-vessel operating
common carriers as well as freight forwarders and shipping agents. MARAD
recognizes the serious implications of these regulations for American
companies that do business in China, and is committed to supporting international
free trade and unrestricted access to China's markets.
Additional Information on the U.S. Maritime Administration may be obtained
Office of Congressional and Public Affairs
400 Seventh Street, S.W.
Washington, DC 20590
Phone: (202) 3665807
or (800) 99MARAD
U.S. Merchant Marine Academy
The U.S. Merchant Marine Academy offers a four-year undergraduate program
that leads to a Bachelor of Science Degree and a merchant marine license
as a Third Mate or Third Assistant Engineer, or a dual license. In addition,
students are enrolled as midshipmen and upon graduation are commissioned
as ensigns in the U.S. Naval Reserve. The Academy's significance as a
world-renowned institution of maritime education cannot be overestimated.
Not only does the Academy produce highly qualified officers for the merchant
marine, but it is also a major source of inactive-duty Naval Reserve officers.
In peacetime, Academy graduates create and operate efficient, cost-effective
marine transportation systems. In times of conflict, Academy graduates
crew the ships that support America's armed forces.
The U.S. Merchant Marine Academy, dedicated in 1943, is recognized worldwide
as an outstanding maritime educational institution, graduating approximately
180 licensed officers yearly. The Academy is a tuition-free four-year
accredited college operated by the Maritime Administration of the U.S.
Department of Transportation. Candidates for admission must be nominated
by a congressman or senator and must compete for vacancies allocated by
state in proportion to its representation in Congress. Current enrollment
is approximately 950. In 1974 the Academy became the first of the federal
academies to admit women.
All Academy graduates incur an eight-year U.S. Naval Reserve commitment,
obligating them to serve in time of war or national emergency, if activated.
Academy graduates also are committed to a five-year maritime service obligation,
requiring them to obtain a merchant marine officer's license on or before
graduation and to maintain the license for at least six years. This service
obligation may be satisfied as an officer aboard U.S. merchant ships or,
with the permission of the U.S. Maritime Administration, in shoreside
maritime or intermodal transportation industry positions if afloat employment
is not obtainable. Active military duty in any branch of the armed forces
also satisfies the obligation.
The Academy has kept its educational program responsive to the needs
of America's maritime industry and to U.S. national-security requirements,
both in its four-year undergraduate curriculum and in its continuing education
program. Students receive B.S. degrees in the following areas of study:
marine transportation; marine engineering; marine engineering systems;
the marine operations and technology program, which provides the marine
transportation major with some fundamental engineering skills; the dual-license
program, which fully integrates the marine transportation and engineering
curriculum; logistics and intermodal transportation; or the marine engineering
and shipyard management program.
Over the years, new emphasis has been placed on important emerging areas
in the industry. The breadth of coursework and hands-on training prepares
graduates to become not only merchant mariners, but also leaders in the
Superintendent: Rear Adm. Joseph D. Stewart, USMS.
Nomination Information: Candidates should contact their congressman or
senator and request nominations at the end of their junior year of high
school. Completed applications must be received by the 1 March deadline,
and candidates must qualify scholastically and physically. Eligibility
considerations include high school academic records, class rank, SAT or
ACT scores, and leadership potential.
Costs: Upon entrance, each midshipman pays a fee of $5,700 to cover student
activities, personal services, and the cost of a personal computer. Fees
for subsequent years range between $1,600 and $2,100 per year.
Financial Aid: Pay received by a midshipman is $600 a month during two
training periods aboard ship. While the Academy does not offer financial
aid, its Financial Aid Office can assist students with identifying and
applying for assistance from external student loan sources.
For more information, contact:
Office of Admissions
U.S. Merchant Marine Academy
Kings Point, NY 110241699
Phone: (516) 7735391
or (800) 7326267
Fax: (516) 7735390
State Maritime Academies
The six state maritime academies conduct training and offer academic
programs that yield highly skilled deck and engineering officers for employment
in the U.S. Merchant Marine. In addition to training engineering and deck
officers, individual schools specialize in maritime port management, marine
sciences, international business, logistics, and other maritime-related
areas of study. By authority of the Maritime Education and Training Act
of 1980, MARAD provides annual funding for student assistance, school-ship
maintenance and repair, and training-ship fuel oil (when available) to
the six state academies.
Qualified students are eligible, at a total federal program cost of $1.2
million per year, to receive student incentive payments (SIPs) of $3,000
annually, for no more than four academic years, to help offset the cost
of uniforms, books, and subsistence. In return, SIP recipients must sail--or
work in maritime-related employment ashore--for three years, accept a
commission in the Naval Reserve or other reserve component of the U.S.
armed forces (making these qualified seafarers available for sealift support),
and obtain a U.S. Coast Guard merchant marine officer's license. They
must maintain that license for six years after graduation.
MARAD also provides training vessels to the five coastal academies for
use in at-sea training and as shoreside laboratories. These training ships
are critical to the ability of the state maritime academy programs to
familiarize students with ship systems and to train them in ship safety,
fire fighting, and damage control. The training ships ensure that students
are able to gain the practical experience of living and working aboard
ship and are able to put to sea more safely. Two of the training ships
are part of the RRF.
California Maritime Academy
Located on San Francisco Bay, the California Maritime Academy is a campus
of the California State University offering accredited degrees in Business
Administration, Marine Transportation, Facilities Engineering Technology,
Marine Engineering Technology, and Mechanical Engineering. In addition
to Bachelor of Science degrees, students earn professional licensing in
one of several areas: Third Mate or Third Assistant Engineer, U.S. Coast
Guard; Certified Plant Engineer-in-Training, Association for Facilities
Engineering; or professional certification in transportation, management,
or international business and logistics. A program of intellectual learning,
applied technology, and leadership development prepares graduates for
positions of significant responsibility in the areas of maritime, business,
logistics, intermodal transportation, and engineering. Students also can
opt to participate in U.S. Navy and Coast Guard programs and receive commissions
For more information, contact:
California Maritime Academy
200 Maritime Academy Drive
Vallejo, CA 945900644
Phone: (707) 6541330
Fax: (707) 6541336
Great Lakes Maritime Academy
An affiliate of Northwestern Michigan College (NMC), the Great Lakes
Maritime Academy has been jointly designated by the U.S. Maritime Administrator
and the governors of the states touching on the Great Lakes as a regional
academy in support of the Great Lakes shipping industry. Deck officer
graduates are legally and professionally qualified to serve as pilots
of the largest bulk carriers in the Great Lakes trade immediately upon
graduation. Engine officer graduates are specifically trained to operate
and maintain shipboard equipment unique to the industry as well as all
other machinery and systems commonly found aboard ships worldwide.
The four-year Academy program, run in conjunction with Ferris State University,
leads to a B.S. degree in business administration; it is conducted concurrently
with the maritime program at the Academy/-NMC/University campuses in Traverse
City, Mich. An Associate's Degree program is available for those students
who wish to enter and already have a Bachelor's Degree.
For more information, contact:
Great Lakes Maritime Academy
1701 E. Front Street
Traverse City, MI 49686-3061
Phone: (231) 995-1200
Fax: (231) 995-1318
Maine Maritime Academy
Maine's seafaring heritage thrives at Maine Maritime Academy, a college
specializing in ocean- and marine-oriented programs at the undergraduate
and graduate levels, with emphasis on engineering, transportation, management,
and ocean sciences, as well as preparing officers for the U.S. Merchant
Marine and uniformed services of the United States.
Maine Maritime Academy is a coeducational public college with an enrollment
of more than 700 students. The college currently offers A.S., B.S., and
M.S. degrees in 12 fields of study. Undergraduate majors include: Small
Vessel Operations, International Business and Logistics, Marine Engineering
Operations, Marine Engineering Technology, Marine Systems Engineering,
Marine Transportation Operations, Marine Biology, Marine Science, Power
Engineering Technology, and Interdisciplinary Studies. The graduate degree
program of the college's Loeb-Sullivan School of International Business
and Logistics offers an M.S. degree in Maritime Management or Logistics
The Ocean Institute, Maine Maritime's division of continuing education,
offers courses and services for professional mariners on the college campus
in Castine, Maine. Individual courses are offered at company-selected
training sites in the United States or abroad.
For more information, contact:
Office of Admissions
Maine Maritime Academy
Castine, ME 04420
Phone: (207) 326-2206
1 (800) 464-6565 (Maine)
1 (800) 227-8465 (Out-of-State)
Fax: (207) 326-2515
Massachusetts Maritime Academy
Founded in 1891, the Massachusetts Maritime Academy is a four-year, accredited,
coeducational college that prepares graduates for careers both at sea
and ashore. The college offers students five academic majors: Marine Engineering,
Marine Transportation, Facilities and Environmental Engineering, International
Maritime Business, and Marine Safety and Environmental Protection. A five-year
program offering a dual major in marine engineering and marine transportation
also is available. The Academy also offers six academic concentrations:
business management, electrical power, facilities and environmental engineering,
marine fisheries, marine transportation, and mechanical engineering.
For more information, contact:
Director of Admissions
101 Academy Drive
Massachusetts Maritime Academy
Academy Drive, Buzzards Bay
Cape Cod, MA 02532
Phone: 1 (800) 5443411
Fax: (508) 8305077
State University of New York Maritime College
Founded in 1874 as the New York Nautical School, SUNY Maritime College,
located at Fort Schuyler, the Bronx, N.Y., is the oldest of the state
maritime colleges. The primary mission of the college is to prepare young
men and women to become licensed U.S. Merchant Marine officers (third
mate or third assistant engineer) and to assume industry leadership positions
afloat and ashore.
Course work in preparation for B.S. or B.E. degrees is offered in marine
engineering, marine electrical and electronic systems engineering, marine
operations, facilities engineering, naval architecture, the humanities,
marine transportation, and marine environmental sciences. An AAS degree
is offered in marine technology/small vessel operations. An M.S. degree
also is offered in transportation management.
For more information, contact:
Director of Admissions
State University of New York
6 Pennyfield Avenue, Fort Schuyler,
Throggs Neck, NY 10465
Phone: (718) 4097220
Texas Maritime Academy
At Texas A&M University at Galveston, the ocean is the classroom.
Ocean voyages, sailing in Galveston Bay, beachfront experiments, and independent
study complement the rigorous classroom experience at Texas A&M University
Texas A&M University at Galveston (TAMUG) is a totally ocean-oriented
campus offering academic degrees, research, continuing education programs,
and public service in marine science, engineering, business, and transportation.
TAMUG provides undergraduate academic instruction in seven marine and
maritime-related degree programs in marine biology, marine sciences (oceanography),
marine engineering technology, marine transportation, marine fisheries,
maritime systems engineering (ocean/civil), maritime administration (policy/business),
ocean and coastal resources (environmental studies), and maritime studies.
For more information, contact:
Office of Student Relations
Texas A&M University at Galveston
P. O. Box 1675
Galveston, TX 775531675
Phone: 187SEAAGGIE (toll-free)
Fax: (409) 7404731