Bipartisan Bill to Bolster American Shipping Fleet Passes House of Representatives
Coast Guard and Maritime Transportation Subcommittee Ranking Member Salud Carbajal (D-CA-24) and Chair Mike Ezell (R-MS-04) announced their bipartisan American Cargo for American Ships Act passed the House of Representatives. The legislation will strengthen U.S. cargo preference laws to stop the ongoing decline of U.S. flagged ships engaged in international trade. The legislation now heads to the U.S. Senate for consideration.
The American Cargo for American Ships Act would increase cargo preference for all U.S. Department of Transportation cargoes to 100 percent. The Cargo Preference Act of 1954 requires that 50 percent of Civilian Agencies cargo and Agricultural Cargo be carried on U.S.-flagged vessels—it is the maritime industry’s “Buy America” law.
In 2022, Maritime Administration (MARAD), the lead federal agency that manages Cargo Preference activities and compliance, testified before the House Transportation and Infrastructure Committee and highlighted the decline of U.S. flagged ships. Per MARAD, there were 106 ships in the foreign trade flying the U.S. flag in 2012. Four years later, there were just 77 vessels. Today, from that low point, we have grown back to 87 foreign trading ships under the U.S. flag.
In 2022, Carbajal, as Chairman of the Coast Guard and Maritime Transportation subcommittee, sent a letter to the MARAD Administrator Rear Admiral Ann Phillips asking them to do more to encourage compliance with U.S. cargo preference laws.
The American Cargo for American Ships Act is supported by: American Maritime Congress, American Maritime Officers, American Maritime Officers Service, American Roll-on Roll-off, International Organization of Masters, Mates & Pilots, Marine Engineers' Beneficial Association, Maritime Institute for Research and Industrial Development, Sailors Union of the Pacific, Seafarers International Union, Transportation Institute, U.S. Ocean, Waterman Logistics, Hapag Lloyd USA, American President Lines LLC.
