Every dollar of U.S. foreign food aid and a meaningful slice of military resupply cargo never touches a competitive freight market. Federal cargo-preference law — separate from the Jones Act, which governs domestic point-to-point shipping — mandates that a fixed share of government and government-financed ocean cargo move on U.S.-flag, U.S.-crewed vessels, foreign trade included. The Cargo Preference Act of 1954 sets a 50%+ floor for civilian-agency and food-aid cargo (food aid was pushed to 75% in 1985, then rolled back to 50% in 2012); the Military Cargo Preference Act of 1904 requires 100% U.S.-flag carriage for military cargo; and Export-Import Bank-financed cargo under Public Resolution 17 (1934) is similarly locked in. None of this is subject to appropriations debate every cycle — it's baked into statute and FAR Subpart 47.5, meaning USAID, DoD, and USTRANSCOM procurement offices must route cargo to the tiny U.S.-flag international fleet regardless of price. That's a captive demand pool, engineered by Washington, for a shrinking supply of qualifying carriers.
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