U.S. Food Aid Exports: The Role of Cargo Preference

GAO discussed issues related to U.S. cargo preference laws, including the impact that the laws will have on food aid to Russia under the Food for Progress Program (FPP). GAO noted that: (1) although the additional cost of using U.S.-flagged vessels decreased by 50 percent from 1979 to 1989 the cost has increased since 1989; (2) the number of U.S.-flagged vessels and U.S. merchant marine personnel also declined from 1979 to 1989; (3) although the number of U.S.-flagged vessels has declined, the number of merchant marine personnel has increased as of 1991; (4) the Military Sealift Command relied heavily on the services of foreign-flagged vessels due to the limited availability of U.S.-flagged vessels during the initial phase of Desert Shield; and (5) foreign-flagged vessels were used mostly for onetime voyages and carried just one-fourth of the dry cargo transported during Desert Shield.