VS Se dautts 
vances in marine transportation. It has been esti- 
mated that various provisions of the Merchant Marine 
Act of 1936 have been responsible in whole or 
in part for the production of about 9,150 vessels.*’ 
In the course of this massive effort, the Maritime Ad- 
ministration and its predecessors have consistently 
been in the forefront of naval architecture and 
marine engineering and have contributed materially to 
the advancement of these disciplines. In World War 
II these capabilities were directed to the mass pro- 
duction of merchant vessels of simplified standard 
design in support of the war effort in the largest ship 
construction program ever undertaken. And in 
peacetime these talents have been directed to the 
task of keeping U.S. construction and operating 
costs as low as possible while at the same time setting 
high standards for the shipping and shipbuilding 
industries. 
In recognition of the importance of U.S. technol- 
ogical development to the success of the 1970 mari- 
time program, Mariti dministration research and 
development activities were expa ne of the 
prominent objectives of the program begun in 1970 
was to increase the relative efficiency of U.S. ship- 
ping and shipbuilding in order to diminish the de- 
pendence—of-these industries on Federal assistance. 
In pursuit of this goal, the Maritime Administration 
research and development program was significantly 
enlarged and redirected to emphasize short-term de- 
velopment projects with early application potential. 
This expanded Government-sponsored R&D effort 
has been of particular importance to the U.S. ship- 
ping and shipbuilding industries, inasmuch as limited 
profitability has tended to minimize the resources 
available within the industries themselves for R&D 
activities. This program has made possible many re- 
search projects aimed at improving the competitive 
position of the U.S. merchant marine, which could 
not otherwise have been undertaken. While MarAd 
R&D budgets averaged $6 to $7 million per year in 
the late 1960s, budgets from 1971 through 1976 
averaged between $20 and $25 million per year. 
To increase the likelihood that research and de- 
velopment results will be directed to meet industry 
needs and subsequently adopted, industry participa- 
tion in planning and carrying out research projects 
has been actively encouraged. As a consequence of 
this effort, the present MarAd R&D program is char- 
acterized by substantial industry participation and 
cost sharing. From the beginning of fiscal year 1971 
through the end of fiscal year 1976, funds authorized 
by Congress for MarAd R&D totaled about $127 
million. Additional industry contributions to MarAd- 
*E. Scott Dillon, Ludwig C. Hoffman, and Donald P. 
Roseman. “Forty Years of Ship Design Under the Merchant 
Marine Act, 1936-1976.” Paper presented before the Annual 
Meeting of the Society of Naval Architects and Marine Engi- 
neers, New York, November 11-13, 1976, p. 2. 
sponsored R&D projects over this period were about 
$62.3 million, bringing the total program to about 
$189.3 million for the 6-year period. It should be 
noted that the industry cost-sharing percentage has 
grown over the past 3 years. 
Analyzing the 760 research and development proj- 
ects undertaken since the beginning of fiscal year 
1971, the Maritime Administration estimates that 
these projects have already returned at least $84 mil- 
lion worth of benefits. Over the next 10 years, 
MarAd estimates that the net present value of eco- 
nomic benefits expected to accrue from these same 
projects could aggregate more than $2 billion. 
To increase U.S.-flag foreign trade carriage and 
increase the use and efficiency of U.S. marine trans- 
portation services, the Maritime Administration con- 
ducts a vigorous marketing program on behalf of 
all U.S.-flag operators. Essentially, this program con- 
sists of two elements. First, extensive marketing in- 
formation and cargo data are maintained by the 
agency for use by U.S. operators in support of their 
individual marketing efforts. And second, a major 
promotional program is conducted by the agency 
itself to familiarize shippers with the advantages of 
transporting their cargoes on U.S.-flag vessels. In 
support of this second component of the program, 
MarAd marketing representatives visit shippers and 
shipper associations around the country to promote 
patronage of US. carriers. 
Another marketing initiative with which the Mari- 
time Administration has been extensively involved is 
the National Maritime Council (NMC), which was 
established in 1971 to develop and encourage indus- 
try cooperation in the promotion of the U.S. mer- 
chant marine. Providing a forum for the exchange 
of ideas and information, and the presentation of 
opinions and problems, NMC has proven extremely 
successful in maintaining intra-industry harmony in 
pursuit of common goals. Today, NMC consists of 
33 member organizations representing all aspects of 
the maritime industry. MarAd’s Office of Market 
Development serves as Executive Secretariat. The 
cooperative spirit engendered by NMC is given a 
large share of credit by MarAd for the stable labor- 
management relations which have prevailed in the 
industry since 1970. 
Under the auspices of MarAd’s market develop- 
ment program, a major national conference was held 
in 1976 at Hyannis, Mass., to consider the special 
problems which have impeded expansion of the US. 
fleet in the carriage of dry bulk commodities. De- 
spite increased Federal support available under the 
1970 Act, this segment of the fleet has continued to 
decline, and, today, U.S. participation in this area 
stands at less than 2 percent of the total U.S. foreign 
trade in dry bulk commodities. The Hyannis Confer- 
ence brought together bulk shippers and leaders 
representing all segments of the maritime industry in 
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