Daniel Inouye: “However, I would like to suggest that to do this would subject our Armed Forces to a highly unreliable source of sealift…”

“However, I would like to suggest that to do this would subject our Armed Forces to a highly unreliable source of sealift and supply. This would leave the United States at the mercy of price gouging by foreign-flag vessels who would have a captive client. For example, in the recent war in the Persian Gulf, 80 percent of the cargo was carried on American flags. We had to pull out ships from all over the seven seas. But we cannot provide 100 percent coverage of all cargo. It was not possible. Our fleet was not large enough. Therefore, to carry the remaining 20 percent, we had to rely on foreign vessels. These statistics that I am about to present, Mr. President, have been confirmed by the GAO and confirmed by the Department of Defense. The average cost of Desert Shield-Desert Storm shipping by foreign flag was $174 per ton. The average cost for Desert Shield-Desert Storm shipping by U.S. flagships was $122 per ton. It was $52 per ton cheaper on American ships.”