U.S. Flag vessels required for USAID shipments

USAID issued a press release informing what cargo was onboard the hijacked Maersk Alabama.

It also mentions the reason the Maersk Alabama was re flagged to be a U.S. Flag vessel (even though it was built in Taiwan), was to be eligible to carry what we always referred to as "Cargo Preference" shipments.

Per the Cargo Preference Act of 1954, as amended, generally seventy-five percent of all USAID food aid shipments must be transported on U.S. flagged carriers.

And, from the Marad web-site

Cargoes procured, furnished, or financed by the United States Government requires that at least 50 percent of the gross tonnage of all Government-generated cargo be transported on privately owned, U.S.-flag commercial vessels to the extent such vessels are available at fair and reasonable rates. In 1985, the Merchant Marine Act of 1936 was amended to require that the percentage of certain agricultural cargoes to be carried on U.S.-flag vessels be increased from 50 to 75 percent. (See Food Security Act)

USAID Food Aid Aboard Maersk Alabama

FOR IMMEDIATE RELEASE
April 09, 2009

* The MV Maersk Alabama is transporting nearly 8,150 MT of USAID P.L. 480 Title II food aid commodities.
* These commodities are valued at approximately $5.3 million and freight valued at $2.1 million. USAID is providing the transportation funding through grants to implementing partners.
* This food aid shipment from the United States contains vegetable oil, corn soy blend, wheat and dehydrated vegetables and will be distributed in Kenya, Somalia, and Uganda by USAID's implementing partners including the World Food Program and Private Voluntary Organizations.
* USAID currently provides life-sustaining food aid to 3.2 million Kenyans, 3 million Somalians and 1.2 million Ugandans.
* The United States is the largest provider of food aid worldwide. In fiscal year (FY) 2008 alone, USAID provided more than 2.6 million metric tons of food, valued at more than $2.6 billion, benefiting people in 49 countries on four continents.
* Per the Cargo Preference Act of 1954, as amended, generally seventy-five percent of all USAID food aid shipments must be transported on U.S. flagged carriers.