- Questions are growing in the Senate and House of Representatives about the U.S. Navy's protection of foreign-flagged cargo ships from Houthi attacks in the Red Sea and the White House's justification for military action without Congressional approval. .
- The calls to prioritize the defense of U.S.-flagged ships come as a result of maritime industry data showing there is no substitute for foreign airlines for global maritime trade to function, and U.S. support for so-called “freedom of navigation.” This is despite the long-standing policy of
- Ninety percent of world trade moves by ship, and more than 97 percent of U.S. import and export trade is carried on foreign-flagged vessels.
This line of inquiry comes amid growing calls from some political leaders on Capitol Hill to justify the U.S. Navy's protection of “foreign-flagged” ships from Houthi attacks in the Red Sea. conflicts with fundamental facts about trade flows. global.
According to U.S. import and export data, the bulk of the country's trade comes from foreign-flagged vessels. In fact, according to U.S. trade data compiled by MDS Transmodal, less than 3% of trade is carried by U.S. vessels, and 97.2% of U.S. trade is carried on foreign-flagged vessels.
The call for Congress to consider prioritizing U.S.-flagged ships comes as the Iranian-backed Houthis continue to attack ships in the Red Sea. U.S. defense officials said there were 40 attacks on commercial ships. On Saturday, the United States and its allies launched the latest airstrikes against the Iranian-backed Houthi rebels. In response, Mohamed al-Bukaiti, a member of the Houthi Ansarallah politburo, said the group's attacks “will continue until the invasion of Gaza stops.”
Recently, four senators, including three on the Senate Foreign Relations Committee, weighed in on the “legal issues” behind President Biden's “unilateral” decision not to prioritize the safety of U.S. ships in light of the deaths of five U.S. service members. asked the White House for evidence. region. Other countries, including U.S. ally France, have already declared that escorting French-linked vessels is a priority after facing nationalist pressure.
International law requires commercial ships to be registered in a country. The country in which a ship is registered is identified by that country's flag. Insurance and national tax environments often influence the flag state of a vessel. For example, the Marshall Islands is a popular registration country for this reason. The flagship standard, in which only 2.6% of U.S. trade is moved on U.S.-flagged vessels, ties U.S. economic interests to naval protection of all ships.
During a hearing in the House of Representatives last Tuesday, Charles “Bud” Dahl, executive vice president of MSC, the world's largest oceangoing airline, heard from Congressman Saldo Carvajal (D-CA) that the U.S. Navy was asked whether the safety of U.S.-flagged ships should be prioritized. Sailing over foreign ships.
Although MSC does not have any U.S.-flagged ships in its fleet, it became the No. 1 oceangoing carrier for U.S. imports based on 2023 arrival cargo data.
“We are a conduit for global trade,” said Darr, a former U.S. Navy officer. He added that although MSC is a foreign national, it pays U.S. taxes and employs many Americans across its operations.
“Keep trade lanes open,” Dar said. “At the end of the day, it's about meeting the commercial needs of our customers, and what they need is what we provide.”
Maersk, MSC's ocean alliance partner, was number one in handling exports to the United States. Maersk is also a foreign-flagged ocean carrier, but like other foreign carriers, including Hapag-Lloyd, it also has U.S.-flagged vessels.
Congressman Carvajal's office did not respond to CNBC's request for comment.
Senate concerned about White House military action
Sen. Tim Kaine (D-Virginia), a member of the Senate Armed Services and Foreign Affairs Committee, said in a letter to the White House: Senator Todd Young (R-Indiana), member of the Senate Foreign Relations Committee; Sen. Chris Murphy (D-Conn.), chairman of the Senate Foreign Relations Committee's Near East, South and Central Asia, and Counterterrorism Subcommittee, questioned the authority of the executive branch in light of the foreign shipping issue. .
“It could be argued that directing military action to protect U.S. commercial shipping is also within this authority. “It raises questions about how far it can be exercised,” they said. I have written.
In the letter, which was also signed by Sen. Mike Lee (R-Utah), the senators said they believe there is a legal basis for the president to unilaterally direct U.S. military action to defend foreign shipping. “Do you believe the government?” he asked.
While the senators expressed support for “sensible steps to protect U.S. personnel and assets, hold the Houthis accountable for their actions, and deter further attacks,” Congress said they would not allow aggressive military action. He said it would need to be carefully considered before approving it.
In an emailed response to CNBC, Sen. Kaine's office said the purpose of the letter was to understand the administration's strategy to thwart Houthi attacks and the legal authority for U.S. military action without Congressional approval. “The goal is to avoid the country going into war without public debate,” he said. Required by the Constitution. ”
“Senator Kaine and his colleagues want answers regarding both the strategy and legal authority for our current actions,” the email said. “The president can act unilaterally to protect America, but anything beyond that requires approval from Congress,” Kaine's office said. “Senator Kaine believes that it is clear that actions taken to protect foreign-flagged commercial vessels, however strategically prudent, are not 'self-defense' by any generally accepted definition. This would require parliamentary approval.”
Mr. Cain's office also said he wanted to know if there were any plans to invite other countries to join in securing global shipping.
“The United States and the United Kingdom are the only countries to take military action, even though other countries' trade is also affected, perhaps more directly, than our own,” Cain said in a statement.
Nevertheless, trade data shows that the majority of U.S. trade comes from foreign vessels.
The White House and the offices of Murphy, Young and Lee in the Senate did not respond to requests for comment by press time.
The United States is conducting Operation Prosperity Guardian, a defense operation in the Red Sea, and more than 20 countries are providing support. Defense officials told CNBC that there are between four and eight coalition warships monitoring the area at any given time.
Rear Adm. Mark Montgomery, a senior fellow at the nonpartisan Foundation for Defense of Democracies and policy director for the Senate Armed Services Committee under Sen. John McCain, told CNBC that the He said the questions were: This goes against the United States' position of supporting freedom of navigation for all nations as a matter of principle.
In international law, freedom of navigation is defined as “freedom of movement of ships, freedom of entry and use of factories and wharves, loading and unloading of goods and transport of goods and passengers.”
“2% to 3% of U.S. shipping transits through the Red Sea, but even less of that 2% to 3% transits through the Red Sea,” Montgomery said. “The United States supports freedom of navigation, transparency, and freedom of the seas. That means we support the protection of all ships, including foreign ships.”
In recent testimony on Capitol Hill, trade representatives warned the House subcommittee that oversees shipping that the U.S. economy cannot be isolated from the global economy on Red Sea security issues. One expert said, “If there's no delivery, you can't shop.''
Maersk recently reported that two of its American-flagged vessels, the Maersk Detroit and the Maersk Chesapeake, were attacked on January 24 while accompanied by the US Navy as they were scheduled to sail northbound on the Bab el-Mandeb River. announced. Following these attacks, Maersk announced it would no longer fly through the Red Sea, a decision Hapag-Lloyd and MSC also recently made. Shipping companies are bracing for an attack in the Red Sea that could last six months to a year, despite U.S. counterattacks.
Montgomery said several issues made it impractical to consider U.S.-flagged shipping as an alternative. In the United States, the number of merchants has decreased dramatically after World War II, and there is also the problem of building American ships. Materials and labor must be located in the United States. Ships are expensive to build in the United States, and the cost of transporting ocean cargo on a U.S.-flagged ship is higher than on a foreign-flagged ship.
“We don't have enough merchants, we don't have enough ships, we don't have enough maintenance,” he said.
He said this is not a new issue and noted that the House of Commons Select Committee on China has asked questions about the issue. “Congress is very aware of this issue,” Montgomery said.
