MarAd enforces the requirements mandated by the Ex-Im Bank that 100 percent of certain cargoes generated by Ex-Im Bank loans and loan guarantees are required to be carried on U.S.-flag vessels.
All direct loans generated under Export Import Bank financing are to be shipped exclusively on U.S.-flag vessels.
Cargo generated under Export Import Bank loan guarantees are to be shipped exclusively on U.S.-flag vessels provided the guarantee amount is over $20 million or the term of the guarantee is over 7 years.
For more information see the MarAd Shipping guidance at the following link:
Maritime Administration U.S.-Flag Shipping Guidance for Shipments Financed by the Export-Import Bank of the United States
Ex-Im Bank – ‘Form F’ (MA-518)
EXIM ‘Form F’ (MA-518), Monthly Report of Ocean Shipments Moving Under Export Import Bank Financing, may be found at the following link:
EXIM ‘Form F’ (MA-518)
MARAD Determinations for Ex-Im Bank
MarAd provides determinations made under Section II to Ex-Im Bank, including the basis for the determination, for use in the Ex-Im Bank financing evaluation process.
General Arrangement: (Country) – U.S.-flag requirements may be adjusted by up to 50% of the total volume of cargo financed under a specific credit to be carried on vessels of the cargo purchaser’s nation.
Compensatory Commitment – In cases where a shipper has shipped some portion of the cargo on non U.S -flag vessels before seeking Ex-Im Bank financing, under certain circumstances, the shipper may commit to ship an equivalent amount of future cargo using U.S.-flag vessels.
Certification of Vessel Non-availability – After investigation, MarAd certifies that a U.S.-flag vessel is not available “in sufficient tonnage capacity, on necessary schedules, or at reasonable rates.”
Reachback Determination – Where a shipper has shipped some portion of the cargo on non-U.S – flag vessels within one year before the date of the Ex-Im Bank application, up to 10 percent of the value of the total cargo to be financed may be eligible for Ex-Im bank financing – but at a lower rate.