Flag ocean ships can be somewhat deceiving if not taken in the proper context. Looking at certain or partial numbers can change the look of some or all of the industry. To try and make some sense of what the reality of the situation actually is currently, it's a good idea to look at as many statistics and as much information as you can find.
U.S. foreign ocean-going trade overall, measured in metric tons, is estimated to have risen by about 3.5 percent since 1998, although that is actually a drop-off of approximately 5 percent from the prior four year period. There isn't really a lone reason to cause this decline, but most experts blame the Asian economic slump and the aging of U.S. container ships. The U.S. has only one percent of the market share of the large merchant vessels being ordered, while Japan and South Korea own around 68 percent of the market. .
Revenues for dry-bulk and container ships have fallen due to the rigid fleet increase, especially over recent years. According to a table in the Maritime Trade & Transportation 99 report, container ships were the biggest gainers of global trade growth within the last decade at around eight percent, with dry bulk and tanker increases of only about three percent each. Container vessels also have the highest increase in fleet size, rising approximately nine percent over the same time period.
The major cause for there being decreasing U.S. flag ships is because owners are switching to and open flag, termed "flagging out," in order to reduce costs and worry about fewer regulations. At least 57 percent of ships are now operating under the open flag, with that number rising annually. This is in spite of the fact that the U.S. ranks in the top five globally in fleet owner nationality, showing that we have some of the toughest operating regulations and costs, along with Japan, Greece, Norway, and the U.K.
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One effect of a change, specifically a decrease, in international waterborne trade is the number of people employed by the cargo services.
