Impact of the United States Coast Guard Regulations on United States Flag Registry

TRB has released a Marine Board report: Impact of the United States Coast Guard Regulations on United States Flag Registry that assesses whether the U.S. Coast Guard (USCG) regulatory process impedes the ability of U.S. flag registered vessels to effectively compete in international commerce. Because of the limited time provided for the Congressionally-mandated review, the committee that produced the report reviewed two reports by the U.S. Coast Guard and the U.S. Maritime Administration (MARAD), and gathered information from stakeholders through a two-day meeting that included USCG personnel, congressional staff, researchers who contributed to the MARAD report, ship owners and operators, and others who participated in the open discussions throughout the meeting.

Based upon analysis of the two reports, information gathered at the meeting, and its expert judgment, the committee finds that the increased costs related to USCG regulatory compliance are now relatively small compared to the increased operational costs associated with U.S. flag registry. The committee therefore concludes that USCG regulatory compliance is not a major impediment to the competitiveness of vessels registered under the U.S. flag. The committee believes, however, that improvements in the regulatory process could reduce costs without increasing safety risk. The report identifies and recommends actions USCG can take in the short term with existing authority to bring about further improvements and other actions that would require enabling legislation.