"To the spread of our trade in peace and the defense of our flag a 

 great and prosperous merchant marine is indispensable." 



— -THEODORE ROOSEVELT 



Chapter VIII 



FACILITATING TRANSPORT AND TRADE 



Waterborne transportation is an integral part of our national economy 

 and is essential in support of national defense requirements. About 90 per- 

 cent of our foreign trade of $56 billion per year moves by water. However, 

 U.S. flag vessels currently carry less than 6 percent of our foreign trade 

 tonnage, and projections indicate that this percentage will decline to less 

 than 3 percent by 1980. This growing reliance on cheaper foreign carriers 

 not only reduces the freight revenues accruing to the U.S. merchant marine 

 and aggravates the balance of payments deficit, but also erodes our status 

 as a world maritime power. 



The advent of more efficient forms of ship transport — supertankers, con- 

 tainerships, barge-carrying ships — may result in slower growth in the number 

 of vessels required to serve our waterborne trade and will be a major factor 

 in planning the number and character of port facilities. Greater concentra- 

 tion of international shipment activities could result in changes in the pat- 

 tern of port traffic on each ocean coast based on economies in shipping costs. 

 These potential developments require urgent consideration of harbor and 

 port redevelopment plans. 



Trends toward specialized ocean transportation services are based on 

 economies which depend heavily on technological innovations. Thus, marine 

 research and development activities can assist in strengthening our maritime 

 capabilities both at sea and in our port areas and enhance the position of the 

 United States in world trade. 



While there is broad agreement on the importance of a strong merchant 

 marine — in the Executive Branch and Congress, and among shippers, union 



113 



