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OCE-84-3 1 (1984-01-31)

handle is hein.gao/gaobabejq0001 and id is 1 raw text is: BY THE U.S, GENERAL ACCOUNTING OFFICE Report To The Chairman, Committee On Merchant Marine And Fisheries House Of Representatives Economic Effects Of Cargo Preference Laws Cargo preference laws mandate that at least 50 percent of all U.S. government-owned or-financed cargo shipped between American and foreign ports be carried on U.S.-flag ships. Using 1980 shipping data, GAO analyzed the dependency of the U.S.-flag fleet on cargo preference laws, the economic effects of cargo preference, and the effect of eliminating the cargo preference requirement for the Public Law No. 480 Food for Peace program. GAO's general conclusions are: --The U.S.-flag fleet depends on cargo preference laws for only a portion of the government cargo it carries. The Department of Defense told GAO that it would continue using U.S.-flag ships as much as possible even if no laws required it to do so. In 1980, government cargo carried on U.S.-flag ships because of cargo preference laws was less than 10 percent of total U.S.-flag cargo. --Because of cargo preference laws, additional U.S.-flag ships and American crews are employed in transporting government cargo and the government pays more to ship its cargo. In 1980, between 21 and 33 additional ships and from 1,400 to 2,200 shipboard workers were employed, and the additional cost to the government was between $71 and $79 million. --The Food for Peace program is a major source of cargo dependent on cargo preference, accounting for 60-75 percent of the total depend- ent cargo in 1980. 123297 U or.)Iuc)GAO/OCE-84-3 -, ...~ tJANUARY 31, 1984

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