100th Anniversary of US Shipping Board
The Federal Maritime Commission, established in 1961, traces its origins to the U.S. Shipping Board created via the Shipping Act of 1916. President Woodrow Wilson signed the Shipping Act of 1916 into law on September 7, 1916. To commemorate the 100th anniversary of the Shipping Act, we will be highlighting key dates in the history of the U.S. Shipping Board
Signing of the Shipping Act, September 7, 1916
The Shipping Act of 1916 was sponsored by Representative Joshua W. Alexander, Chairman of the House Committee on Merchant Marine and Fisheries. Under Representative Alexander, the Committee conducted a two year investigation into the competitiveness of the ocean transportation industry. This review culminated in the publication of the Report on Steamship Agreements and Affiliations in the American Foreign and Domestic Trade, commonly referred to as the "Alexander Report."
The Alexander Report found that there was indeed cooperation between shipping lines to set service and rates offered to "shippers", the individuals and companies contracting for services. The investigation also found there was a commercial benefit to allowing lines to cooperate and argued that rather than trying to abolish this practice, the government should seek to allow regulated coordination.
Based on the recommendations of the Alexander Report, Congress passed the Shipping Act of 1916 creating the U.S. Shipping Board, a body that consisted of five Presidentially appointed Commissioners who were charged with regulating foreign and domestic shipping. The Board was also charged with promoting and developing the American merchant marine.
While the motivation for Representative Alexander’s legislation was to address competitive commercial concerns in the shipping sector, Europe had been at war since 1914 and the Board soon became very involved in building the maritime capacity the United States would need when it ultimately entered the conflict in 1917.
Though created in law in 1916, the U.S. Shipping Board would not be fully comprised until March of 1917.