Aboard the HMS Tonnant during the Battle of Baltimore, Francis Scott Key wrote his esteemed poem, “The Star-Spangled Banner.” The attorney and amateur poet was inspired by the sight of the American flag still flying high, after a night of British bombardment on Fort McHenry.
The American flag still waves, in more peaceful times, from great vessels that pass the historic fort, laden with cargo from domestic and world ports.
U.S. Flag status, though, is much rarer than in the past. Over time, U.S. Flag vessels dwindled from more than 1,000 ships to 200. By 1980, less than 4 percent of America’s export and import waterborne trade was moving in U.S. Flag ships. Today, only 47 ships are granted the honor of flying solely the American flag.
Less than 5 percent of the U.S. fleet calls the port of Baltimore, according to the Baltimore Maritime Exchange, which tracks vessels through the harbor.
The precipitous decline in American vessels resulted from excessive demands and requirements for U.S. ship registry. Running a ship became cost prohibitive. U.S. registry required a more expensive American crew, and ship owners paid higher taxes and fees than other countries. Foreign companies were outbidding shipbuilding, once a flourishing enterprise in Baltimore. In late 1973, the Arab oil embargo quadrupled oil prices, which virtually halted domestic ship construction.
An act of Congress was needed to save a vital component of American commerce. In 1995 the Maritime Security Act was passed by an overwhelming Senate vote. The Act established the Maritime Security Program, which provided $2.1 million a year for each of the 47 ships enrolled in MSP. Funding for the program requires annual review by Congress.
In exchange for appropriations, ship owners and operators agreed to make cargo capacity and their entire inter modal network available to the Department of Defense when needed, to meet national defense requirements.
Country flag registry, similar to registering a car, is required for port authorities to track tonnage and collect taxes. The United States is positioned 12th in the top 20 merchant fleets of the world.
Certain important capabilities arereserved for companies that fly the Stars and Stripes. Only U.S. Flag ships can carry cargo from state to state within the United States. Equally, American flagged vessels must carry military cargo moving from the United States to U.S. bases overseas.
A longtime export analyst and consultant, Joseph R. Hughes? maritime-related articles have appeared in numerous publications. He is a native Baltimorean. E-mail your questions to him at [email protected].
