The Long Range Shipbuilding program was implemented by the U.S. Maritime Commission shortly after its establishment in 1937 as part of the mandate of the Merchant Marine Act of 1936 which stated that:
United States shall have a merchant marine
(a) sufficient to carry its domestic water-borne commerce and a substantial portion of the water-borne export and import foreign commerce of the United States and to provide shipping service on all routes essential for maintaining the flow of such domestic and foreign water-borne commerce at all times
(b) capable of serving as a naval and military auxiliary in time of war or national emergency,
(c) owned and operated under the United States flag by citizens of the United States insofar as may be practicable, and
Prior to the passage of the act, the U.S.'s merchant fleet was primarily made up of ships which had been built as part of the Emergency Fleet Program at the end of World War I. Because of technological advances in hull construction and propulsion machinery, these ships were rapidly becoming obsolete and non-competitive in the commercial market and of limited value to the Navy as auxiliary support vessels. Additionally, U.S. shipyards had been suffering atrophy from more than 15 years of little to no new construction with either Navy nor commercial orders and it was felt that rebuilding the commercial shipbuilding capacity in the U.S. was in the nation's strategic interest.
In order to remedy this situation and to facilitate the mission given to it by the act, the Maritime Commission devised a program to build 500 new design merchant freighters powered with either steam turbines or diesels. The 500 total ships were to be built over a 10-year period and contracts for their construction went to both established and new shipyards on the East, West and Gulf Coasts. The new ships would be broken into two groups. First were those constructed to contracts placed by the individual shipping companies to their own designs but where the construction differential between a US and foreign yards to be subsidized by the Maritime Commission. The second group were ships built to standard designs of the Commission and where the contract for the construction of the ships would be to Federal Government's account. It was this shipbuilding effort which became known as the Long Range Program. It was intended that this latter group of ships would be chartered to commercial operators who would use the ships in peacetime but that the ships would be available for use by the Navy in wartime. These included the type C1 ships, type C2 ships and type C3 ships.