b'6American Journal ofTransportation ajot.com(ADRIFTcontinued from page 4) tainerizedvessels)andtonnagethat 40,000 vessels that were built in Amer- opened the way for foreign flag ves-icanshipyards,650,000jobsrelatedsels to dominate the US trade lanes. An to maritime trades and $41 billion inarticle in Business Insider in 2021 by labor compensation and $154 billion inRachel Premack outlined the fall in US economic output from the sector. Muchflag tonnage. In 1960 the US merchant ofthiseconomicoutputisrelatedtofleetwasabout16%oftheworlds activities on US inland waterways, thefleetandnowitrepresentsanesti-Great Lakes and coastwise.mated 0.2% of the world fleet (Editors Still, a relatively small percentagenote: this number fluctuates somewhat oftheUSflaggedmerchantfleetisbetween different data bases). engaged in ocean carriage, especiallyWhat happened? theinternationaloceancarriageandSimilar to the situation after WWI particularlythoseoperatingcontain- inthepost-WWIIera,theUSagain ershipsandroll-on/roll-offvessels.had a massive amount of tonnage and A vast majority of the containershipin a fire-sale sold or moved into private andRo/RovesselcallsinUSportshandsagreatnumberofships.Ironi-are made by owned and operated for- callylaunchingGreeksandotherfor-eign flagged carriers. In short, foreigneign competitors. As is the case now, USPasha ro-ro vessel dockside at the Port of Tacoma.flagged vessels accounted for nearlyflag ships were more expensive to build all of the estimated 28 million TEUand operate in the 1960s and to evenfrom heavy industry and manufacturinginterest groups and agricultural busi-throughput of US ports in 2024. theplayingasPremackwrote,Theyto a more services-based economy.nesses and interests of the American Nonetheless,wellknownUSflagdecided, then, to dole out governmentWith this economic transition UShinterlandoutweighedthoseofthe operators like Matson, Pasha and Crow- subsidiesinanotherway.Therewereship owning interests began movingmaritime. During this time US ship-ley operate US flag vessels that connecttwoprograms:theoperatingdifferen- to other flags like Liberia and Panamabuildingbecameeitherdedicatedto ports in the lower 48 states to ports intial subsidy (ODS) and the constructionandbuildinginforeignshipyards.constructingfordomesticJones Act Hawaii, Alaska, Puerto Rico and Guamdifferential subsidy (CDS). ThroughoutItstartedwiththetankersandoiltrade or defense. And containerships with some other international routes inthe1960sand1970s,taxpayerswereinterests and by the time the Reagan an American invention and the the mix. [It is worth noting that a Matsonspendingbillionsperyeartosupportadministration dropped the industrysbuildingofothershipsengagedin vesselcallinginChinawasassessedthe building and operating of Americansubsidies, the flight of flag was wellinternationaltrademovedtoother massivefeesaspartofthetit-for-tatships. While the supports did produceunderway.Intheensuingdecadescountries before China embarked on response to fees being assessed on Chi- some remarkable vessels like the SL-7smany of the American carriers eitherits own maritime expansion.nese built, operated or flagged vesselshigh speed containerships and first gen- wentoutofbusinessorwerelike calling US ports.] eration of large LNG carriers, it wasntSea-LandandAPL-swallowedupt heu nappeaLinga ppeaL oFr epeaLBut this wasnt always the case. enoughtopreventtheerosionofUSbyforeigncarriers,suchasMaerskOver the years there have been a flag vessels from 2,926 in 1960 to 864andCMA-CGM.Fortheblue-wa- number of efforts to repeal the Jones a ni nconvenientt rutha boutF LagS in 1980a mere twenty years. And thisterAmericanflagoperators,itwasAct often spearheaded by groups like There was a precipitous fall in thewashappeningatthetimewhenthesimply a matter of good business totheCatoInstitutewhicharguethat US flag vessels beginning in the lateworld fleet was growingespeciallyuseflagsofconvenienceandbuildTheJonesActhaswreakedhavoc 1950s and into the 2000s. It was thiswith the shift to containerships. Simul- overseas while for US political leader- on the US economy[and] it is time drop in general cargo ships (now con- taneously, the US economy was shiftingship it was always a balance between(ADRIFTcontinued on page 20)Serving Hawaii Is Our BusinessPasha Hawaiis dynamic shipping network and knowledgeable professionals are here to serve your supply chain needs. Pasha offers the broadest range of container and roll-on/roll-off services between Hawaii and the Mainland, with connections to comprehensive intermodal services nationwide. Find out more at pashahawaii.com.10x8-1:2pg.indd 1 12/5/24 12:03 PM'