Obama budget allows more foreign-flagged ships to move US Food for Peace
OPPORTUNITIES for non-American vessels to ship cargo in the US Food for Peace programme are increasing because of President Barack Obama's budget, angry witnesses told the US congressional Subcommittee on Coast Guard and Maritime Transportation.
"The president has sent Congress a budget that proposes to restructure the Food for Peace programme," said the committee chairman, California Republican congressman Duncan Hunter.
The Obama administration wants to give the US Agency for International Development flexibility in sourcing food aid, including the ability to buy food overseas and not use US-flag vessels, reported American Shipper.
Marine Engineers' Beneficial Association president Mike Jewell told the committee that the 1936 Merchant Marine Act calls for a merchant marine "sufficient to carry its domestic water-borne commerce and a substantial portion of the water-born export and import foreign commerce".
Said Mr Jewell: "Today US-flag commercial vessels transport two per cent of our country's foreign commerce. Mr Chairman, that is hardly a substantial portion."
As US military cargo shrinks, there are even fewer American merchant ships in service. "Over the last 35 years, the number of US-flagged vessels sailing in the international trade has dropped from 850 to less than 100," said Mr Hunter.
Seafarers International Union vice president Auggie Tellez told committee that the industry lost a third of food aid cargo last year because of a change in the MAP-21 transportation law.
"In that law, Congress cut by a third the foreign food aid cargo reserved for American-flag ships. Since 1985, American ships have carried 75 per cent of Food For Peace. That is now 50 per cent," Mr Tellez said.
Ranking California Democratic committee member, Congressman John Garamendi agreed with the Republican chairman, saying Obama was "dead wrong." He was joined by fellow California Democrat, Congresswoman Janice Hahn, who was critical of plans to change the Food for Peace programme.
Department of Transportation deputy secretary John Porcari testified that US flag shipping engaged in foreign commerce is experiencing a decline because the military had less need for shipping with the retreat from Iraq and Afghanistan.
Asked about giving the Food or Peace cargo to non-US carriers, Mr Porcari said: "We can't afford to lose that capacity, whether it is the actual vessels, or the US crews. Food aid is only one component and what we want to focus on is things such as energy transportation, where we believe in the future there are growth opportunities for US flag fleet and US mariners."
OPPORTUNITIES for non-American vessels to ship cargo in the US Food for Peace programme are increasing because of President Barack Obama's budget, angry witnesses told the US congressional Subcommittee on Coast Guard and Maritime Transportation.
"The president has sent Congress a budget that proposes to restructure the Food for Peace programme," said the committee chairman, California Republican congressman Duncan Hunter.
The Obama administration wants to give the US Agency for International Development flexibility in sourcing food aid, including the ability to buy food overseas and not use US-flag vessels, reported American Shipper.
Marine Engineers' Beneficial Association president Mike Jewell told the committee that the 1936 Merchant Marine Act calls for a merchant marine "sufficient to carry its domestic water-borne commerce and a substantial portion of the water-born export and import foreign commerce".
Said Mr Jewell: "Today US-flag commercial vessels transport two per cent of our country's foreign commerce. Mr Chairman, that is hardly a substantial portion."
As US military cargo shrinks, there are even fewer American merchant ships in service. "Over the last 35 years, the number of US-flagged vessels sailing in the international trade has dropped from 850 to less than 100," said Mr Hunter.
Seafarers International Union vice president Auggie Tellez told committee that the industry lost a third of food aid cargo last year because of a change in the MAP-21 transportation law.
"In that law, Congress cut by a third the foreign food aid cargo reserved for American-flag ships. Since 1985, American ships have carried 75 per cent of Food For Peace. That is now 50 per cent," Mr Tellez said.
Ranking California Democratic committee member, Congressman John Garamendi agreed with the Republican chairman, saying Obama was "dead wrong." He was joined by fellow California Democrat, Congresswoman Janice Hahn, who was critical of plans to change the Food for Peace programme.
Department of Transportation deputy secretary John Porcari testified that US flag shipping engaged in foreign commerce is experiencing a decline because the military had less need for shipping with the retreat from Iraq and Afghanistan.
Asked about giving the Food or Peace cargo to non-US carriers, Mr Porcari said: "We can't afford to lose that capacity, whether it is the actual vessels, or the US crews. Food aid is only one component and what we want to focus on is things such as energy transportation, where we believe in the future there are growth opportunities for US flag fleet and US mariners."