The New Merchant Marine Situation

April 26, 1924

Report Outline
Special Focus

New developments in the merchant marine situation suggest the possibility of renewed activity for American shipping and hold out some promise for employment of some of the hundreds of ships, which have been tied up since the end of the war.

The first is the certification by the United States Shipping Board that there is adequate American-owned shipping to handle traffic offered on through export and import bills of lading. Railroads of the United States long have maintained rates on export and import commodities which are lower for the through haul, by rail and ocean, than the proportionate part would be on commodities moving wholly within the country by rail. Thus, steel moving from Chicago to New York, under bill of lading through to Liverpool pays a lower rail rate to the port than steel shipped over the same route but intended for consumption at New York.

Section 28 of the Merchant Marine Act provides that when it shall appear that there is adequate American flag shipping to handle this traffic, such reduced rates shall apply only upon goods shipped in American-owned vessels. Goods exported in foreign flagships must pay the full rail rate. The Shipping Board has certified to the Interstate Commerce Commission that such a situation now obtains and the Commission has entered an order providing that the differential in favor of goods forwarded overseas in American bottoms shall become effective June 20, 1924. The Commission's original order set May 20 as the effective date but this subsequently was changed to June 20. It is expected that further postponement will be ordered and a protracted wrangle is anticipated.

ISSUE TRACKER for Related Reports
Aquaculture and Maritime Policy
Oct. 2007  Oceans in Crisis
Jul. 27, 2007  Fish Farming
Nov. 04, 2005  Saving the Oceans
Aug. 02, 2002  Threatened Fisheries
Sep. 27, 1985  Whaling: End of an Era
Jul. 16, 1982  Troubled Maritime Industry
Jun. 07, 1974  Oceanic Law
Sep. 29, 1965  National Maritime Policy
Sep. 04, 1963  Fishing Rights and Territorial Waters
Oct. 05, 1955  Territorial Waters and the High Seas
Jul. 21, 1954  Plight of the Maritime Industry
Jul. 10, 1935  Merchant Marine Policy of the United States
Jan. 15, 1929  Sea Power and Sea Law
Jul. 24, 1928  Government Aid to the Merchant Marine
Oct. 17, 1925  The Merchant Marine Problem
Apr. 26, 1924  The New Merchant Marine Situation
BROWSE RELATED TOPICS:
Defense Technology and Force Planning