American Cargo for American Ships Act introduced in House

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Reps Salud Carbajal (D.-Calif.) and Mike Ezell (R.-Miss.), respectively the ranking member and the chair of the House Coast Guard and Maritime Transportation Subcommittee, have introduced the bipartisan “American Cargo for American Ships Act,” aimed at strengthening U.S .cargo preference laws, promoting American economic growth and reducing the ongoing decline of U.S. flagged ships.

The legislation would increase cargo preference for all U.S. Department of Transportation cargoes to 100%. The Cargo Preference Act of 1954 requires that 50% of civilian agencies cargo and Agricultural Cargo be carried on U.S.-flag vessels – it is the maritime industry’s “Buy America” law. MARAD is the lead federal agency that manages cargo preference activities and compliance.

In 2022, the 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, the number has grown back to 87 foreign trading ships under the U.S. flag.

“American cargo transported by American ships bolsters our economy, creates more jobs, and protects our supply chains,” said Rep. Carbajal. “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.”

“Ensuring that American cargo is transported on American ships with American crew is a matter of economic strength and domestic investment,” Rep. Ezell said. “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 following organizations support the legislation: 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.

• The full text of the “American Cargo for American Ships Act” is available HERE