Page 13 - NAVAL SCIENCE 3 TEXTBOOK

18 NAVAL KNOWLEDGE

the last in 1996, that modified some of the provisions of the ear- overseas represents a vital and steadily growing part of our national
lier three. The Merchant rvfarine Act of 1936 was described above. econolllY. Some 90 percent of our domestic <md foreign trade trav-
Probably the most significant of all of them was the Jones Act of els via the sea lanes. There can be no doubt about the importance
1920. Its purpose as stated in the act is that it is necessary for the of waterborne commerce to the prosperity and high standard of
national defense and proper growth of foreign and domestic COIll- living of the American people now and in the fuhlre.
merce that the United States shall have a merchant marine of the The prunaq' commercial purpose for operating the merchant
best equipped and most suitable types of vessels sufficient to C<Irq' fleet is, of course, to make a reasonable profit. However, this is
the greater portion of its commerce and serve as a naval auxiliary much easier said than done. U.S. shipping companies often have
in time of war or national emergency. It specified that all domes- to compete with rebates given by foreign manufacturers to for-
tic waterborne COIllmerce between two points in the United States eign shipping companies to carry their products at premium rates.
must be carried by U.S.-owned and -operated vessels. Subsequent A rebate is a nice term for a kickback or bribe, a practice that is
federal regulations also require that at least half of all U.S. govern- illegal under U.S. law, but an accepted way of doing business in
ment cargos be carried by American-flag shipping. many foreign countries. Also, a poor record of labor stability in
American maritime unions has periodically tied up U.S.-flagged
ships. These factors, along with the perennial problems of rising
The Impact of Wat erborne Commerce taxes and insurance costs and higher shipbuilding and labor costs

Throughout the globe. the preferred method of transporting large over the years, have caused the percentage of American cargo car-
quantities of raw materials and manufactured trade goods is by ried in American ships to drop to less than 3 percent of the current
water, because this is the fastest, most efficient, and least costly way. annual total. There are just over 400 commercial oceangoing ships
Some 80 percent of all world trade goods tr<wel by water. The other of more than 1,000 gross tons in the U.S.-flag fleet--of an esti-
transport systems-rail. truck, aircraft, and pipeline-support, mated tot<ll of some 29,000 in service worldwide.
augment, and complement waterborne transport. In the United States there are some 350 ports that handle
As mentioned in the previous chapter, the economies of all freight, passengers, or both. Over 2 billion tOilS of cargo and 150
nations of the world ha\'e become interdependent to a degree million passengers pass through these ports each year. Currently,
never before seen in the history of the world. No nation has <lll the ten leading U.S. marine ports, in the order of the value of ship-
the resources it needs to be completely independent, nor can any ments handled, are the ports of Los Angles, California; New York!
nation's economy thrive without marketing its goods be}'ond its New Jersey; Long lkach, California; Houston, 'texas; Charleston,
borders. The United States, for example, must import o\'er one South Carolina; Norfolk, Virginia; Tacoma. \,Vashington; Baltimore,
hundred vital metals and minerals from more than sixty countries, Mar)lland; Oakland, California; and Seattle. \'Vashington.
including almost 70 percent of our petroleum, nearly 100 percent Because much of the world's oceangoing commercial fleet is
of ores such as aluminum ilnd chromium, and a growing percent- aging at a tairly rapid pace, orders for new and larger merchant
age of fmished steel products. Grain from our farms is marketed ships of all descriptions are increasing at building yards world-
worldwide, and income frOIll our manufactured products sold wide, especially in Asia, where Japan and South Korea together
account for some 70 percent of the world shipbuilding market.
Unfortunately the United States does not get much of this busi-
ness, bCCi.1USe of higher labor and construction costs here. l\'fost
of the large shipbuilding ya rds in the United States specialize in
the construction of naval vessels, although most also build some
high quality cOlllmercial \'essels. The five largest U.S. shipyards
in the United States are Northrop Grumman/Newport News,
Newport News, Virginia; Northrop Grumman/lngalls, Pascagoula,
i\'{ississippi; General Dynamics/Electric 13oat, Groton, Connecticut;
General Dynamks/B<lth Iron \Vorks. Bath, Maine; and Northrop
Grumman/Avondale, in New Orleans and lallulah, Louisiana, and
Gulfport, Mississippi.

Unfortunately for the United States, few new American-flag vessels
like th is gas turbine- powered Prudential Lines freighter are being
built and operated by U.S. compan ies.