Introducing the American Cargo for American Ships Act

The bipartisan “American Cargo for American Ships Act” has been introduced by Coast Guard and Maritime Transportation Subcommittee Ranking Member Salud Carbajal (CA-24) and Chair Mike Ezell (MS-04) with the aim of strengthening U.S. Cargo preference laws and promoting American economic growth.

One of the main goals of this legislation is to combat the ongoing decline of U.S. flagged ships. According to the Maritime Administration (MARAD), there has been a significant decrease in the number of U.S. flagged ships over the years. In 2012, there were 106 ships in the foreign trade flying the U.S. flag, but by 2016, this number had dropped to just 77 vessels. While there has been some growth since then, with the current count at 87, there is still a pressing need to support and bolster the U.S. maritime industry.

The “American Cargo for American Ships Act” seeks to increase cargo preference for all U.S. Department of Transportation cargoes to 100%. The Cargo Preference Act of 1954 mandates that 50% of civilian agencies cargo and agricultural cargo must be carried on U.S.-flag vessels, serving as the maritime industry’s equivalent of a “Buy America” law. MARAD plays a crucial role in managing cargo preference activities and ensuring compliance with these regulations.

Ranking Member Salud Carbajal emphasized the importance of American cargo being transported on American ships, stating that it not only strengthens the economy and creates jobs but also protects supply chains and national security. He sees this legislation as a way to maintain a robust and competitive maritime workforce, reduce reliance on foreign vessels, and solidify America’s position as a global leader in trade and commerce.

Chair Mike Ezell echoed these sentiments, emphasizing that transporting American cargo on American ships with American crew members is essential for economic strength and domestic investment. He believes that prioritizing U.S. vessels and American jobs will not only support the maritime industry but also reduce dependence on foreign shipping, thereby safeguarding supply chains and keeping America strong on the seas.

A number of prominent organizations have voiced their support for the “American Cargo for American Ships Act,” including the American Maritime Congress, American Maritime Officers, International Organization of Masters, Mates & Pilots, and many more. These endorsements underscore the widespread recognition of the importance of this legislation in bolstering the U.S. maritime industry and ensuring a secure and resilient supply chain.

By championing American cargo for American ships, this act aims to revitalize the U.S. flagged fleet, create more job opportunities for American workers, and fortify the nation’s maritime infrastructure. It represents a significant step towards enhancing the competitiveness and sustainability of the U.S. maritime industry, while also reinforcing America’s role as a leading force in global trade and commerce.