Exporters seek shipping changes at export-import bank

A requirement for U.S. flag ocean transport is impairing President Obama’s National Export Initiative, according to an export advocacy group.

John Hardy Jr., president of the Coalition for Employment Through Exports said Friday that removing the U.S. flag requirement for projects financed by the Export-Import Bank of the United States is one of the changes that the group would like to see when the Ex-Im Bank’s charter comes up for renewal in September 2011.

Hardy said that the Maritime Administration can waive the requirement, but how quickly it’s done depends on the administrator.

“There have been times when Marad administrators have recognized the reality, it’s been handled quickly,” Hardy said. “Normally they’ll try to negotiate - ‘Can you go part of the way on U.S. ships?’”

The problem also is that a qualified U.S. ship may not be available at the time when an exporter wants to ship his cargo, Hardy said.

“Very often it can be very significant. If the purchaser of the equipment is in the middle of a project, and you tell them that there’s going to be a six week or 2-month delay - that’s huge,” Hardy said. “We’re at a point where there is a significant impediment for U.S. exporters that has built up by the existence of this Marad requirement.”

On the other hand, Hardy said that the Ex-Im Bank is limited by political realities, in this case the desire by Congress to protect the U.S. shipping industry.

Hardy said another rule the group would like changed is one that requires 85 percent of an export be made in the United States. The group also wants greater flexibility for the bank to be more competitive with other countries’ export financing agencies. (source: JOCsailing)

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