Charlie Papavizas Weighs in on Decline of the United States’ Role in Shipping

Maritime & Admiralty Practice Chair Charlie Papavizas was quoted in the TradeWinds article “MarAd Chief: U.S. a Maritime Nation at Risk” published on September 21. The article discusses the decline in the United States’ role in shipping and the impacts on America’s image abroad.

The administrator of the U.S. Maritime Administration (MarAd), delivered a concerned message to attendees at the TradeWinds Shipowners Forum USA 2016 regarding the diminishing share of world seaborne cargo trade carried on U.S.-flagged ships. The volume of commerce represented by U.S.-flagged ships is at the lowest in history representing only 78 of the 50,000 ships that trade internationally.

The article notes that the disappearance of U.S.-flagged ships from international markets can be perceived as a signal that the U.S. will not act beyond its borders. In addition, it may weaken the United States readiness to respond to crises overseas, leaving the U.S. vulnerable to relying on non-U.S.-crewed ships to carry military forces.

“The decline of the U.S.-flagged fleet was seen as starting in 2012 when the requirement for the amount of food aid carried on such ships was dropped to 50 percent from 75 percent. Fewer overseas military basis also reduced the business for U.S.-flagged ships,” said Mr. Papavizas.

Other than boosting that ratio back up to 75 percent of aid carried on U.S.-flagged ships, “nothing can be done easily to reverse that trend,” Mr. Papavizas said. “A lot of attention has to be paid to all the cargo so that it does not leak.”

Mr. Papavizas focuses his practice on administrative, legislative, and corporate matters, primarily in the maritime industry.