Welcome to the Maritime
Administration's Office of Cargo Preference and Domestic Trade (OCPDT) web
site. OCPDT's primary focus is to promote and monitor the use of U.S.-flag
vessels in the movement of cargo on international waters. The office is
composed of three sections: Agricultural Cargoes, Civilian Agencies, and
Military Cargoes. Information related to the three sections may be accessed
by clicking on the appropriate button(s) to the left of this text. In
addition, links to Government and private entities have been provided for
your viewing. However, it should be noted that OCPDT only accounts for the
accuracy of information on its web site.
To fully understand the
movement of cargo, let's first define:
What is
Cargo Preference?
The Cargo Preference
program works to promote and facilitate a U.S. maritime transportation system
that is accessible and efficient in the movement of goods and people. It
oversees the administration of and compliance with U.S. cargo preference laws
and regulations. Those laws require shippers to use U.S.-flag vessels to
transport any government-impelled oceanborne cargoes.
What is Government-impelled cargo?
Government-impelled cargo
is cargo that is moving:
-
Either as a direct result
of Federal Government involvement
-
Or, indirectly through
financial sponsorship of a Federal program
-
Or, in connection with a
guarantee provided by the Federal Government
Why Do We
Have Cargo Preference?
To provide a revenue base
that will retain and encourage a privately owned and operated U.S.-flag merchant
marine because the U.S.-flag merchant marine is a vital resource providing:
-
Essential sealift
capability in wartime or other national emergencies
-
A cadre of skilled
seafarers available in time of national emergencies
-
Help to protect
United States ocean commerce from total foreign domination and control
What
percent of cargo is required to be carried on U.S.-flag vessels?
-
Military Cargo = 100%
(governed by Military Cargo Preference Act of 1904);
-
Export Import Bank =
100% (governed by Public Resolution 17);
-
Civilian Agencies Cargo
= at least 50% (governed by Cargo Preference Act of 1954); and
-
Agricultural Cargoes =
at least 75% (governed by the Food Security Act of 1985)
For a description
of the laws, click
here
What is
the Process?
The process is framed
below:
-
Fully identify cargo to
be shipped to extent possible
-
Identify timeframe for
expected move to extent possible
-
Shipper must work in
advance with potential U.S.-flag carriers and with MARAD, and must solicit
U.S.-flag carriers as listed on MARAD's web site:
Listing
of U.S.-Flag Carriers
-
Evaluate responses as to
availability and cost
-
Book the cargo on a
U.S.-flag vessel or contact MARAD (1- 800-9US-FLAG [987-3524]; or (202)
366-4610; Email: cargo.marad@dot.gov)
for assistance.
-
File required reports
(bill of lading) with MARAD
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