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The Economic Times
The Economic Times
National
Team Global

The U.S. paid $5 million each to keep 60 commercial ships under its flag in 2018; Defence can call on every vessel during war or a national emergency

In March 2018, the US government backed a $300 million programme to support 60 privately owned commercial vessels, allocating the equivalent of $5 million annually to each ship. The arrangement was more than a subsidy for shipping companies. It was a defence strategy designed to ensure that the military could access commercial ships, trained American sailors and international transport networks during a war or national emergency.

According to the US Government Accountability Office (GAO), the Maritime Security Program was authorised to provide annual stipends per vessel for the 2018 to 2020 financial years, subject to available appropriations. Congress provided the full $300 million in funding for 2018, restoring the programme to its authorised capacity of 60 ships. The arrangement highlighted a less visible aspect of military preparedness: moving equipment, supplies and personnel across oceans without relying entirely on government-owned vessels.

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