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Cargo Preference Laws and Regulations The Military Cargo Preference Act of 1904 requires that 100% of cargoes bought for the Army, Navy, Air Force, or Marine Corps be carried on U.S.-flag vessels. Essentially, this means all military cargo.
Military Cargo Preference Act of 1904. Codified at 10 U.S.C. 2631, all items procured for or owned by U.S. military departments and defense agencies must be carried exclusively (100%) on U.S.-flag vessels available at rates that are not excessive or otherwise unreasonable.
What is the difference between P1 and P2 services? P1 service - the cargo is transported on one or more U.S.-flagged vessels (only) from the load port to the destination discharge port. P2 service - the cargo is transported on at least two different vessels en route to the destination discharge port.
For a country to be included in the list of flag states, it must have the necessary maritime infrastructure both financial and technicaland should adhere to all the norms and regulations established by the International Maritime Organization (IMO).
55305, and promulgated by regulation under 46 CFR parts 381 and 382, requires that at least 50% of cargoes procured, furnished, or financed by the U.S. Government, which may be transported on ocean vessels, are transported on privately-owned U.S. commercial vessels, to the extent those vessels are available at fair and
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MARAD at a Glance Mission: To foster, promote and develop the maritime industry of the United States to meet the nations economic and security needs.

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