What has happened to the US flag fleet?

How can the world's greatest trading nation afford to let its commerce be carried entirely on foreign controlled ships?

Editor's note, the following is excerpts from Conrad H.C. Everhard's speech before the Orlando Freight Forwarders Association on January 11, 2000.

Orlando attracts more than 42 million tourists annually from all over the world. This area is also the center of the US citrus export industry.

The cruise ship industry (including the Disney cruise ships) has discovered the advantages of Port Canaveral, only 39 miles away, and has made it second to none as a cruise port. Container service, particularly for Florida's citrus crop, is a natural growth area that Port Canaveral is now encouraging.

One disturbing aspect of this booming cruise business, as well as the container shipping business, is that virtually all of these huge ships are flying foreign flags, even though they are full of American cruise passengers and American foreign trade goods. But no one seems to care about the long-term impact of foreign control over US shipping and trade, not even those in Congress charged with this responsibility.

If this Congress were a business, most of the Congressmen (and Congresswomen) would have been fired by now for incompetence. They have accomplished almost nothing. Meanwhile, vital US interests are being handed over to foreign control.

Last month, a few in Congress awoke to the fact that we gave away the Panama Canal 22 years ago. They are now alarmed that a Chinese terminal operator is operating the terminals on either end of the canal and seem to believe that operation of these terminals is somehow going to give China control over the canal. It probably hasn't occurred to them to ask why the operation of these terminals by this Chinese company had no impact on US control of the canal prior to the turnover on December 31. But while these Congressmen are chasing this questionable issue in Panama, all in Congress and in the Administration are ignoring the fact that our entire $2 trillion foreign trade is now in the control of foreign interests, not the least of which are Chinese.

The US has decided, largely by default, that it no longer needs a merchant marine. Within the last two years, we have witnessed the sale of virtually all of our remaining US fleet to foreign interests. Sea-Land is now owned by the Danes; Lykes is owned by the Canadians; most of Crowley's operations are owned by the Germans; and American President Lines is owned by Chinese interests in Singapore. Of the 47 ships currently receiving subsidy from US taxpayers, at least 33 are now owned by foreign companies. How can the world's greatest trading nation afford to let its commerce be carried entirely on foreign controlled ships? And how can Congress explain to taxpayers that it is in their interest to continue to subsidize these operations?

The maritime labor unions that have supported these transfers of US-flag ships in the belief that their own jobs will be preserved must be disciples of the Neville Chamberlain doctrine of "peace in our time." Don't Sea-Land's officers remember that Maersk replaced many of its own Danish officers with Filipinos just a few years ago? How long will the (Singapore ) Chinese owners of APL retain US crews if the US makes any move to pull away the feedbag of subsidies or taxpayer-financed preference cargoes? I'm continually amazed that the King's Point Alumni Association has voiced no concern over these developments which will likely raise more calls for elimination of our subsidized Merchant Marine Academy in the near future.

While the US has turned its back on its merchant marine, other nations have not lost sight of the centuries-old lessons of the importance of a merchant fleet. You may have noticed recent press articles indicating that Germany is trying to take steps, including tax benefits, to prevent further erosion of the German-flag fleet. But the big story in this area is, once again, China.

Since the US re-opened trade with China in the