The purpose of this paper is to identify, with particular emphasis on federal maritime policy, the reasons why the merchant marine and maritime industry of the United States have so dramatically declined in size, capacity, and competitiveness in recent years.Current and proposed government policy, particularly that of the Reagan Administration, will be examined along with viewpoints of representative maritime industry sectors to assess the prospects for solving the problems that plague the merchant marine. Finally, recommendations will be offered which are considered most likely to improve the vitality of the merchant marine