New legislation to address decline of US-flagged cargo ships

US Congressmen Salud Carbajal and Mike Ezell, both of the House Coast Guard and Maritime Transportation Subcommittee, have introduced the bipartisan American Cargo for American Ships Act with the aim of reducing the ongoing decline of US-flagged ships.

In 2022, the Maritime Administration (MARAD) testified before the Transportation and Infrastructure Committee and highlighted the decline of US-flagged ships.

Per MARAD, there were 106 ships in the foreign trade flying the US flag in 2012. Four years later, there were just 77 vessels. Today, the number has grown back to 87 foreign trading ships under the US flag.

Representative Carbajal said that the act also safeguards US national security by reducing dependence on foreign vessels.

The authors said the American Cargo for American Ships Act would increase cargo preference for all US Department of Transportation cargoes to 100 percent.

The Cargo Preference Act of 1954 requires that 50 per cent of civilian agencies cargo and agricultural cargo be carried on US-flagged vessels.

MARAD is the lead federal agency that manages cargo preference activities and compliance.

The full text of the American Cargo for American Ships Act can be read here.