A crack in cargo preference? (Maritime Administration's new rules on cargo shipping)

Reacting to shipper complaints, MarAd may make it easier to move Eximbank-financed cargo on non-U.S.-flag ships.

WASHINGTON

Many U.S. shippers have long complained they've been shut out of world markets by laws reserving government-financed cargoes to American-flag ships.

Now change may be on the way.

Responding to shipper complaints, the Maritime Administration has proposed loosening U.S.-flag shipping requirements for high-valued project cargoes financed by loans from Export-Import Bank of the United States (Eximbank).

The changes wouldn't affect most cargo-preference shipments, which are dominated by military and agricultural cargoes not covered by Eximbank loans.

But Eximbank-financed cargo has increased in recent years and accounted for about 8 percent of cargo-preference cargo in 1994, according to MarAd figures. New figures expected to be released early in 1997 are expected to show even more growth. …