The Chairman and Ranking Member of the United States House Coast Guard and Maritime Transportation Subcommittee have introduced the “American Cargo for American Ships Act,” a bill designed to strengthen U.S. Cargo preference laws and promote American economic growth while reducing the ongoing decline of U.S. flagged ships.
In 2022, the United States Maritime Administration (MARAD) testified before the 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, it has grown back to 87.
“Ensuring that American cargo is transported on American ships with American crew is a matter of economic strength and domestic investment,” said Representative Mike Ezell (R-Mississippi), Chairman of the House Coast Guard and Maritime Transportation Subcommittee. “This bill prioritizes U.S. vessels and American jobs, reinforcing our maritime industry and reducing dependence on foreign shipping. I’m proud to introduce this legislation to support our domestic fleet, protect our supply chains, and keep America strong on the seas.”
The “American Cargo for American Ships Act” would increase cargo preference for all U.S. Department of Transportation cargoes from 50 percent 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.-flag vessels as part of the maritime industry’s “Buy America” law. MARAD is the lead federal agency that manages cargo preference activities and compliance.
“American cargo transported by American ships bolsters our economy, creates more jobs, and protects our supply chains,” said Representative Salud Carbajal (D-California), Ranking Member of the House Coast Guard and Maritime Transportation Subcommittee. “I’m proud to introduce the American Cargo for American Ships Act that will ensure that our maritime workforce remains strong and competitive, safeguards our national security by reducing dependence on foreign vessels, and reinforces America’s position as a global leader in trade and commerce.”
Organizations that support the act include the 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.
“American cargo should always be carried by American ships crewed by American mariners. The U.S. Merchant Marine and American maritime industry are key components of national security and national defense, as well as U.S. commerce and a robust domestic and international transportation and logistics network,” said Christian Spain, AMO Vice President of Government Relations. “Cargo preference helps ensure a strong U.S.-flag commercial fleet and a ready base of American mariners are available to reliably deliver for our nation in peace and war.”