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Office of Cargo Preference
MILITARY CARGOES
Customer Outreach
Tel.:(800) 9US-Flag (987-3524)
(202) 366-4610
Fax: (202) 366-5522
Email: cargo.marad@dot.gov
MILITARY CARGOES
MARAD initiates and recommends regulations and
procedures for the Department of Defense (DOD) to follow in administering cargo
preference. Program efforts concentrate on meetings and discussions with DOD
component commands, contractors, suppliers, freight forwarders, and shipping companies to
focus attention on meeting the needs of all constituents within the context of U.S.-flag
carriage requirements.
Cargo shipping for DOD is subject to the Military
Cargo Preference Act of 1904 which requires that items procured for, intended for use by,
or owned by military departments or defense agencies, must be carried exclusively (100
percent) on U.S.-flag vessels, if available at reasonable rates. The preponderance
of DOD dry cargo is booked on U.S.-flag vessels by the Military Surface Deployment and
Distribution Command (SDDC), formerly the Military Traffic Management Command, for the
various DOD shipper services as part of the Defense Transportation System (DTS). The
rates and services provided by the ocean carriers constitute their transportation
contracts with SDDC.
MARAD's functions with regard to the Military Cargo
Preference Act of 1904:
To establish regulations and procedures for
Government agencies to ensure that the cargo preference laws are implemented as intended
by Congress.
To determine which programs, projects, and
contracts are encompassed by the laws.
To determine the availability of U.S.-flag service
when that availability is questioned by another agency, contractor, or program
participant.
To provide guidance concerning the reasonableness
of ocean freight rates to Federal agencies and participants in programs sponsored by those
agencies.
To monitor the compliance of Government agencies
and commercial shippers subject to the preference statutes.
To report to Congress on compliance with the cargo
preference laws by Federal agencies.
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