The broader scope for SSS includes riverine, shallow water, and Great Lakes routes,encompassing both existing markets and future market niches. According to this perspective,the relevant infrastructure boundaries <strong>of</strong> SSS operations are both the blue-water coastalwaterways as well as non-deep sea segments <strong>of</strong> the freight infrastructure. Theseinfrastructure segments are complementary to intermodal truck and rail transport andpotentially support an integrated model <strong>of</strong> domestic freight traffic flows. In this report, theterm SSS is used in the broad sense to encompass coastal, inland rivers, and the Great Lakesshipping.Early Institutional Forces Governing U.S. Coastal ShippingIn the 19 th century, coastal shipping was the dominant mode <strong>of</strong> transporting domestic andforeign trade goods in the U.S. In 1817, Congress passed the “cabotage law” barring foreignflaggedships from engaging in American coastal trade. The geographic reach <strong>of</strong> thiscabotage legislation was extensive and was eventually broadened to include trade betweenthe Atlantic and Pacific coasts and among non-contiguous parts <strong>of</strong> Puerto Rico, Alaska, andHawai’i.In 1860, coastal shipping engaged far more ships and crews than did traffic for overseastrade. In terms <strong>of</strong> tonnage, the volume <strong>of</strong> coastal trade equaled the tonnage carried in foreigntrade, as reported in a recent report by the Institute for Global Maritime Studies (IGMS)entitled America’s Deep Blue Highway. 4 According to the IGMS report, coastal shippingremained competitive, even though by mid 19 th century turnpikes had greatly improved andrailroads were firmly in place. Because builders <strong>of</strong> the nation’s railroad gave first priority tolaying tracks westward rather than north/south along the Atlantic seaboard, the continueddominance <strong>of</strong> Atlantic coastal trade was sustained. Coastal trade remained prosperous wellinto the 1860s, when “Coaster” ships were used to serve the new manufacturing industries,carrying textiles from New England cities to customers up and down the Atlantic coast andinto the Gulf as far as New Orleans, returning with items such as raw cotton and coal to meetthe region’s demand for raw material input and fuel. In 1830, New York was the nation’sleading port, followed by Philadelphia, Baltimore, Boston, New Orleans, and Charleston.Smaller ports along the coastal area served as “feeders” to these larger hubs. These “feederports” served as transshipment centers for both domestic and overseas traffic.Ship building as an industry peaked in the mid-19 th century. After 1865, American yardscould no longer compete with foreign-built shipyards and the industry went into a sharpdecline. However, coastal shipping thwarted competition from railroad for a bit longerbecause <strong>of</strong> prohibitions against railroads acquiring steamship operators. The MerchantMarine Act <strong>of</strong> 1920 and the related statutes, commonly known as the Jones Act, decreed thatvessels used to transport cargo and passenger to U.S. ports be owned by U.S. citizens, bebuilt in US ship yards and crewed by U.S. citizens. The passage <strong>of</strong> the Act coincided with aperiod in the nation’s transportation history in the 1920 associated with improved roads andintroduction <strong>of</strong> new cargo truck transport mode in competition with SSS.4 Institute for Global Maritime Studies, America’s Deep Blue Highway: How Coastal Shipping Could ReduceTraffic Congestion, Lower Pollution, and Bolster <strong>National</strong> Security, September 2008, http://www.igms.org; thestudy reports that in 1860, coastal trade carried some 2,644,000 tons <strong>of</strong> cargo compared to 2,545,000 tonscarried in foreign trade.ONR SSS Final Report 8
1-2 Waterway Infrastructure and FacilitiesThe types <strong>of</strong> SSS services provided in the U.S. are strictly governed by waterway facilitydepth, type <strong>of</strong> cargo carried, and location in the water transportation network for movinggoods and people referred to as the U.S. maritime transportation system (MTS). The U.S.MTS consists <strong>of</strong> 26,000 miles <strong>of</strong> navigable inland and intracoastal waterways, including11,000 miles <strong>of</strong> commercially active inland waterway navigable channels and 2,342 miles <strong>of</strong>Great Lakes and St. Lawrence Seaway. 5 These waterways consist <strong>of</strong> 9,584 “commercialfacilities” in the Atlantic, Gulf, and Pacific coasts, Great Lakes, and Inland waterways, eachcategorized according to channel depth and usage (Cargo, Passenger service, and Unused):• A total <strong>of</strong> 5,066 <strong>of</strong> the U.S. waterway facilities are deepwater facilities, where deepwateris defined as those with greater than 12 feet in depth. (Exceptions to this classificationare the 14- to 15-foot portions <strong>of</strong> the Columbia and Snake rivers that are classified asshallow water.)• A total <strong>of</strong> 4,518 <strong>of</strong> the U.S. waterway facilities are shallow water facilities, including theentire inland waterways facilities.The geographic distribution <strong>of</strong> the nation’s 9,584 deepwater and shallow water facilities byregion shows that deepwater facilities are fairly evenly distribution among the coastal andGulf ports, with the inland waterways exclusively classified as shallow-water facilities, asoutlined below and in Figure 1. Altogether, 21 percent <strong>of</strong> the facilities are located on theAtlantic Coast, 18 percent on the Pacific Coast, 24 percent on the inland rivers, 29 percent onthe Gulf Coast, and 8 percent on the Great Lakes: Atlantic Coast - 1,473 deepwater and 587 shallow water facilities Gulf Coast - 1,606 deepwater and 1,093 shallow water facilities Pacific Coast - 1,387 deepwater and 363 shallow water facilities Great Lakes - 600 deepwater and 154 shallow water facilities Inland river system - 2,321 shallow water facilities. 65 <strong>Office</strong> <strong>of</strong> Freight Management and Operations, Freight Facts and Figures, 2007, FHWA, USDOT.6 Based on data from USACE, U.S. Waterway System – <strong>Transportation</strong> Facts, 2007. Note that there are deepwater facilities on the inland waterway system as well, but the source does not identify them.ONR SSS Final Report 9