US House of Representatives passes bipartisan American Cargo for American Ships Act

US Congressmen Salud Carbajal and Mike Ezell have confirmed that their bipartisan American Cargo for American Ships Act recently passed the House of Representatives, according to a joint statement from the two legislators dated June 10.

The legislation seeks to strengthen US cargo preference laws to stop the ongoing decline of US-flagged ships engaged in international trade. The legislation has since been submitted to the US Senate for consideration.

Mr Carbajal said the will would, "strengthen the US shipping fleet by ensuring that taxpayer-funded cargo is moved on US-flagged ships."

Mr Ezell meanwhile remarked that bill would ensure that America will not be dependent on foreign vessels to move US goods, "especially during times of crisis."

The authors of the American Cargo for American Ships Act expect that the legislation would increase cargo preference for all US Department of Transportation cargoes to 100 per cent.

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

The Department of Transportation's Maritime Administration (MARAD) is the lead federal agency that manages cargo preference activities and compliance.

In 2022, MARAD testified before the House 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 figure has grown back to 87 foreign trading ships under the US flag.

In 2022, Carbajal, as Chairman of the House Coast Guard and Maritime Transportation subcommittee, sent a letter to MARAD Administrator Rear Admiral Ann Phillips asking the agency to do more to encourage compliance with US cargo preference laws.