U.S. Department of Transportation

Office of Public Affairs

Washington, D.C.

www.dot.gov/affairs/briefing.htm

News

B06-007

Press Book

The Maritime Administration has released a study of Competition in the Noncontiguous Domestic Maritime Trades. The study, an update of a 1997 DOT analysis discusses the economic factors affecting the demand and supply of liner services in the four domestic offshore markets (Alaska, Guam, Hawaii and Puerto Rico). Since the initial study freight rates have declined in real terms in all markets. One of the most notable trends is the shift from raw materials to manufactured goods, which tend to be containerized. Market trends suggest that carriers in the domestic offshore trades have confidence in these markets, anticipate growth ahead, recognize the need to improve service and keep rates low in order to improve their competitive positions. The study is available in .pdf format on the MARAD web site, www.marad.dot.gov.