On March 11, Coast Guard and Maritime Transportation Subcommittee Ranking Member Salud Carbajal (CA-24) and Chair Mike Ezell (MS-04) introduced the bipartisan “American Cargo for American Ships Act” to strengthen U.S. Cargo preference laws and promote American economic growth. The legislation aims to reduce the ongoing decline of U.S. flagged ships.
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, from that low point, we have 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,” 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 SIU is proud to support the American Cargo for American Ships Act. Now, more than ever, the United States needs a strong and vibrant merchant marine. There are many things we should be doing to make that a reality, but one of the easiest and most obvious is to make sure cargo purchased by the United States government with American taxpayer dollars moves on American ships with American crews. We applaud Chairman Ezell and Ranking Member Carbajal for their leadership, and look forward to working with them to get this bill signed into law,” said President David Heindel.
The Maritime Institute for Research and Industrial Development strongly supports this important legislation. We thank Congressman Salud Carbajal for fighting to ensure that American taxpayer cargoes support the operation of U.S. -flag vessels that are necessary to enhance our nation’s economic and military security,” said President James Patti.
“The Masters, Mates & Pilots Union strongly supports this much-needed and vitally important legislation. This bill recognizes that the viability of our industry is dependent on the availability of cargo – and ensures that cargo financed by the American taxpayer is carried to the full extent possible on American ships with American crews. We thank Congressman Carbajal for his leadership on this issue,” said Don Josberger, International President at International Organization of Masters, Mates, & Pilots.
“For too long, federal agencies have evaded compliance with cargo preference laws, undermining a key tenet of our “Ship American” policy. By mandating that all government-required cargo be transported on U.S.-flagged vessels, we can prevent misuse of the waiver process. Adhering to cargo preference laws supports our U.S. fleet and job opportunities for American mariners at this critical time. M.E.B.A. commends Congressman Salud Carbajal for introducing the American Cargo for American Ships Act and will work to turn this legislation into law,” – Adam Vokac, Marine Engineers’ Beneficial Association.
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.-flag vessels – it is the maritime industry’s “Buy America” law. MARAD is the lead federal agency that manages Cargo Preference activities and compliance.
The following organizations support the “American Cargo for American Ships Act”: 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.
At the end of last year, a bipartisan group of U.S. senators and representatives proposed the SHIPS for America Act to revitalize the U.S. merchant fleet and rebuild the U.S. shipbuilding industry. The Act contains a number of measures: including the creation of a Maritime Security Advisor in the White House to lead an interdepartmental Maritime Security Council; the requirement that U.S. government-funded cargo be transported by U.S. vessels beginning in 2029; the requirement that 10 percent of imports from China be transported by U.S. vessels; and the imposition of a tonnage tax on vessels owned by China or registered in China, among other things.
Both acts take “protectionism + industry support” as the core, trying to reshape the U.S. shipping and shipbuilding industry through legislation, while adding the restrictive strategy of China’s shipbuilding industry, reflecting the U.S. policy shift against globalization.