DOD Leases of Foreign-Built Ships: Background for Congress

Publication Date: October 2008

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

Type: Report

Coverage: United States United States

Abstract:

The Department of Defense (DOD) in recent years has leased some foreign-built cargo ships for total periods, including options and renewals, of almost 10 years -- a length of time that some observers argue effectively circumvents a legal requirement that U.S. military ships be built in U.S. shipyards. These observers, particularly the American Shipbuilding Association (ASA), have proposed reducing the current five-year legal limit on ship leases to two years for foreign-built ships. DOD has opposed the idea, arguing that its ship leases are the most cost-effective way to meet its needs for the ships in question. This CRS report will be updated when events warrant.