2010-11_ANNUAL_REPORTS_-_FINAL_VERSION_(3)

Industry Overview
HELPING AMERICAN COMMERCE
The U.S. water transportation industry serves the needs of both foreign and domestic commerce. It
includes companies that carry freight or passengers on the open seas or inland waterways, offer towing
services, charter vessels, and operate canals and terminals.
Waterborne Trade and the U.S. Fleet
In 2010, U.S. waterborne commerce amounted to nearly 2.1 billion metric tons, foreign commerce
making up 62 percent of the total (FIGURE 1). 2 In the mid-1990s, domestic and foreign trade were each
about 1 billion metric tons. By 2010, foreign trade had increased to 1.3 billion metric tons while
domestic trade had fallen to 0.8 billion metric tons due largely to import substitution in the oil trade.
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2
1
FIGURE 1. U.S. Waterborne Commerce,
Foreign and Domestic, 1975-2010
(Billion Metric Tons)
0
1975 1980 1985 1990 1995 2000 2005 2010
U.S. foreign trade has Foreign increased, Domestic as a percentage of the
overall trade, in 12 of the last 15 years (or since 1995).
Sources: Domestic Trade— U.S. Army Corps of Engineers,
Waterborne Commerce of the United States; Foreign
Trade—Bureau of Census, Foreign Trade Division, TQ985-
1975-2010 U.S. Waterborne Exports and General Imports
1,800
1,500
1,200
900
600
300
0
FIGURE 2. U.S. Waterborne Trade, 2005-
2010
(Billion Dollars)
2005 2006 2007 2008 2009 2010
In 2010, exports accounted
Imports
for 32
Exports
percent of U.S.
waterborne trade ($), up from 23 percent 5 years earlier.
Source: Bureau of Census, Foreign Trade Division,
TQ985-1975-2010 U.S. Waterborne Exports and
General Imports.
The U.S.-flag fleet carries all of our domestic trade 3 , and about 2 percent of our foreign trade. Under the
Jones Act, U.S. domestic trade is reserved for vessels registered under the U.S.-flag and built or
reconstructed in the United States. As of year-end 2010, 39,869 U.S. privately-owned vessels were
available for operation in U.S. foreign and domestic trades (TABLE 1).
Table 1. U.S.-Owned Fleet by Segment, 2010
Barges
Ocean Lakes Tugs Dry Tank Offshore Ferries Total
U.S.-Owned 720 48 5,807 27,278 4,699 685 632 39,869
U.S.-Flag 193 48 5,807 27,278 4,699 517 632 39,316
Jones Act 97 48 5,807 27,278 4,699 517 632 39,224
Foreign Trade 96 0 0 0 0 0 0 96
Foreign-Flag 527 0 0 0 168 0 695
Notes: Year-end fleets. The U.S. privately-owned fleet consists of vessels operated under U.S. and foreign
flags. Ocean/Lakes—vessels of 10,000 DWT or greater.
Sources: Ocean and Offshore—Clarkson Research, Vessel Register; Tugs and barges—U.S. Army Corps of
Engineers, Vessel Detail files.
All inland and coastal vessels (tugs, barges, ferries and lakes vessels) in the U.S.-flag fleet had Jones Act
trading privileges. Of the U.S.-owned ocean vessels, about 27 percent (193 vessels) were registered
under the U.S.-flag, and 13 percent (97 vessels) had Jones Act trading privileges.
2 Source available at http://www.ndc.iwr.usace.army.mil/wcsc/pdf/wcusnatl10.pdf.
3 The domestic trades include cargoes moved on the oceans (including trade between the 48 contiguous states and Alaska, Hawaii, Puerto Rico
and Guam), along the coasts, on the inland waterways and the Great Lakes. These trades are protected by Section 27 of the Merchant Marine Act
of 1920. Section 27, otherwise referred to as the “Jones Act,” reserves marine transportation of freight and passengers to U.S.-built, maintained,
documented, owned, and crewed vessels.
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