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MarAd Study Examines Shipping Policy Options The Maritime Administration (MarAd) has released an exten- sive study on the liner segment of oceanborne shipping which ex- amines three national maritime policy alternatives and projects their probable impact on Ameri- can-flag operators in the nation's foreign trade over the next 10 years. The options considered are that (1) the status quo be maintained, (2) the policy be modified to en- courage more competition among merchant fleets of the world, or (3) the policy be changed to per- mit greater cooperation between American and other national flags carrying general cargoes. The study on "The U.S. Mer- chant Marine and the Interna- tional Conference System" was prepared by Harbridge House, Inc., under a contract let in Au- gust 1977 by MarAd, an agency of the U.S. Department of Com- merce. Robert J. Blackwell, Assistant Secretary of Commerce for Mar- itime Affairs, said in announcing the results: "We expect this anal- ysis to be extremely useful in ex- ploring the various policy alter- natives which the Federal Gov- ernment is considering to end the chaos and restore stability to our liner trades. It is both timely and objective. For that reason, IMCO/INERT GAS/CRUDE OIL WASHING We are ready} The recent IMCO conference on Tanker Safety and Pollution Prevention has focused attention on Inert Gas Systems and Crude Oil Washing on oil tankers. Owners faced with new building or retrofitting inert gas, who are considering C.O.W., should bring their tank cleaning problems to Butterworth Systems. ..the leader in tank cleaning for 48 years. BUTTERWORTH® K and SK machines are not only the world's leading portable tank cleaning machines, but fixed in BUTTERWORTH® K Machine place deep within cargo tanks, some K machines have been going strong for almost 20 years. 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Deck Mounted Vertical Yes For more information and a free copy of a 12-page brochure titled, "Tanker Safety and Environmental Protection," contact: Butterworth Systems BUTTERWORTH SYSTEMS INC. 224 Park Avenue, P.O. Box 352, Florham Park, NJ 07932 (USA) Phone: (201) 474-1546 Cable: BUTTWORTH NEW YORK TLX 136 434 BUTTERWORTH SYSTEMS (UK) LTD. 445 Brighton Road, South Croydon, Surrey CR2 6EU (ENGLAND) Phone: 01-668-6211/6 Cable: MAROPEDOK CROYDON TLX 946 524 o Copyrighf 1978 Butterworth Systems Inc. BUTTERWORTH and LAVOMATIC are registered trademarks of Butterworth Systems Inc. it should be a valuable tool to the Administration's Interagency Task Force which is studying maritime policy, to members of the Congress in their considera- tion of a number of bills designed to remedy the situation, and to the shipping lines in long-range planning." Mr. Blackwell stressed that "our purpose is not to advocate specific policies but rather to project the expected consequences of alterna- tive courses of action, with special emphasis on topics of immediate concern to the Maritime Admin- istration and the U.S. merchant marine, to which we provide Fed- eral support under the Merchant Marine Acts of 1936 and 1970." The report noted that the U.S.- flag liner fleet, consisting of some 270 vessels operated by commer- cial firms, is fairly new, generally well managed, and highly innova- tive. "Yet," it said, "the fleet is in a precarious economic position, for by and large the rate of return is not commensurate with the in- vestor risks and, as a result, dis- investment rather than reinvest- ment is a real possibility." The report said U.S. policy on world trade is unique regarding liner conferences, the associations of shipping operators which es- tablish the rates, terms, and con- ditions of liner cargo carriage. The reference is to the Shipping Act of 1916, under which confer- ence carriers in the U.S. to for- eign trades may operate only within open conferences; that is, they may not exclude any would- be joiners. The rest of the world has generally opted for closed conferences where existing mem- bers may refuse the entry of new applications. The 1916 Act also forbids the use by conferences of measures designed to balance sup ply with demand and/or to obtain cargo via rebating and other eco- nomic practices. The study examined these ap- proaches to the shipping confer- ence question: Proposals to continue present policies—maintain the status quo, continue to rely on the Shipping Act, approve shipping pools and equal-access agreements on a case-by-case basis, and generally support the open-conference sys- tem. Proposals to increase competi- tion— remove the antitrust ex- emptions of conferences, abolish the Federal Maritime Commission or reduce its regulatory jurisdic- tion, disapprove pooling agree- ments, remove Government rate control, and decrease Government cargo preference. Proposals to increase coopera- tion — permit increased pooling arrangements, authorize closed conferences, and permit shipper councils; adopt a UN code of conduct for liner conferences and implement Government cargo al- location and equal-access agree- ments. (continued next page) 14 Maritime Reporter/Engineering News
