DOMESTIC SHIPPING:

Domestic Shipping Overview

MARAD actively promotes the development of the domestic merchant marine. (Department of Transportation's (DOT) strategic goal of "advancing America's economic growth and competitiveness domestically and internationally through efficient and flexible transportation.")

Domestic waterborne transportation is safe, reliable, efficient and an established mainstay of America's national transport system. The domestic shipping operations of the American merchant marine provide essential services to 41 States reaching 90 percent of the national population. During CY 1999, this environmentally friendly form of surface transportation handled a combined total of over 1.1 billion short tons of cargo, which is about 23 percent of the ton-miles of all domestic surface transportation traffic. Domestic waterborne transportation contributes $7.7 billion to the gross domestic product annually in the form of freight revenue.

To encourage a strong U.S. merchant marine for both national defense and economic security, the nation's domestic waterborne commerce is reserved for vessels built in the United States, owned and crewed by American citizens, and registered under the American flag. U.S. laws governing the domestic transportation of passengers and cargo by water are generally known as the Jones Act, named after Senator Wesley Jones (R-WA), the sponsor of the Merchant Marine Act of 1920. The Jones Act continues to be the foundation for America's domestic shipping policy.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).

Coastal Shipping Initiative

MARAD is sponsoring a project to examine the development of a coastwise shipping system for the advancement of waterborne trade along the Nation's coasts to relieve congested highways. The study's preliminary phase provided a framework for future research to improve coastwise shipping. The next phase has begun and will have active participation by domestic carriers, ports, shipbuilders and a number of federal agencies, including the Federal Highway Administration and Bureau of Transportation Statistics. The ultimate goal of this study is to demonstrate the feasibility and benefits of a robust coastal liner shipping system along the Nation's East, West and Gulf coasts for intercity general cargo.

View the publication: High Speed Ferries and Coastwise Vessels: Evaluation of Parameters and Market for Application.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).

Maritime Administration Assistance to Shippers

MARAD is the Federal agency that provides assistance to the shipping public in locating suitable U.S.-flag vessels for carriage of cargo in U.S. waterways and along the U.S. coasts. MARAD, through an MOU with the Department of Energy and the U.S. Customs Service, assists in locating suitable U.S.-flag tonnage when shippers of energy products report that they are having difficulty in locating vessels.

The Jones Act (46 U.S.C. 883, 19CFR 4.80 and 4.80b) requires that merchandise being transported by water between U.S. points must travel in U.S.-built and U.S.-citizen owned vessels that are documented by the U.S. Coast Guard for such carriage. The U.S. Customs Service has direct responsibility for enforcing the provisions of the Jones Act and is statutorily limited to granting waivers from the Act only in the interest of national defense or for a vessel in distress. Waivers of the Jones Act are extremely rare. When the U.S. Customs Service receives a request for a Jones Act waiver, it notifies MARAD immediately. MARAD then canvasses the U.S.-flag domestic shipping market to locate suitable tonnage, and advises Customs as to the availability of U.S.-flag tonnage within 48 hours. Often Customs refers shippers directly to MARAD if they need assistance in locating U.S.-flag tonnage. In these cases, MARAD is usually able to match the shipper's requirements with available U.S.-flag tonnage before a Jones Act waiver request is made.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).

Small Passenger Vessel Waiver Program

As authorized by Public Law 105-383, MARAD established a process to administratively waive the U.S.-build requirements of the Jones Act for certain small passenger vessels. Specifically, Title V authorizes the Secretary of Transportation to waive the domestic build requirements for foreign built or rebuilt small passenger vessels authorized to carry no more than twelve passengers. In order to grant such waivers, the Secretary must determine that employment of the vessel in the coastwise trade will not adversely affect U.S. vessel builders or the coastwise trade business of any person who employs vessels built in the United States.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).

 Ferry Initiative

MARAD leads a DOT-wide working group, which consisted of representatives from U.S. Coast Guard, Federal Highway Administration, and Federal Transit Administration, that addresses ferry-related issues. As a result of a Ferry Conference held in Seattle (June 2000), a permanent federal interagency committee, which will act as a central clearinghouse for all federal ferry-related issues, was created. A ferryboat web page is planned in early 2001.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).

Inland Container on Barge

MARAD initiated a Cooperative Agreement with the Port of Pittsburgh Commission, to assist the Port in studying the feasibility and marketability of running a container on barge service between the Port of Pittsburgh, PA to Monterrey, Mexico, via Brownsville, TX.

The portion that MARAD and the Port of Pittsburgh are working on is to organize and establish a Shippers Council in Pittsburgh, PA and Monterrey, Mexico. Research will be done to identify potential shippers in the Pittsburgh area, and additional shippers on the waterway corridor between Port of Pittsburgh and Brownsville, TX for cargo moving onward via truck to Monterrey, Mexico. The same will be done with shippers on the same water corridor for cargo moving to the Northeast.

For further information, you can contact MARAD's Office of Ports and Domestic Shipping (telephone 202-366-4357, fax 202-366-6988, or email at ports.marad@marad.dot.gov).