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Maritime Security Fleet: Many Factors Determine Impact of Potential Limits on Food Aid Shipments

GAO-04-1065 Published: Sep 13, 2004. Publicly Released: Sep 13, 2004.
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Highlights

Food aid cargo must generally be carried on U.S.-flag ships under requirements set by the cargo preference program. Two groups of carriers compete for this cargo: (1) those that participate in the Maritime Security Program and receive an annual government subsidy--generally liners operating on scheduled routes and (2) those that do not--generally carriers operating on a charter basis. Congress directed GAO to study (1) how the cargo preference and Maritime Security programs are designed and who participates;(2) the nature and extent of MSF and non-MSF carrier participation and competition in the food aid program; and (3) how a tonnage limitation on bagged preference cargo for MSF vessels could affect MSF, other U.S.-flag ships, the cargo preference food aid program, and the ports servicing these ships.

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BargesCargo preference lawsCompetitionEconomic analysisFood relief programsFreight transportationInternational food programsMarine transportationMaritime securityShipping industryMerchant vessels