US lawmakers make renewed push for SHIPS for America Act
US Senators Mark Kelly and Senator Todd Young, and Congressmen Trent Kelly and John Garamend have re-introduced the Shipbuilding and Harbor Infrastructure for Prosperity and Security (SHIPS) for America Act, expanding on an earlier bill proposed in 2024 during the administration of then-President Joe Biden.
The SHIPS for America Act is a comprehensive approach to revitalising the US Merchant Marine by establishing national oversight and consistent funding for US maritime policy; making US-flagged vessels commercially competitive in international commerce by cutting red tape; rebuilding the US shipyard industrial base; and expanding and strengthening mariner and shipyard worker recruitment, training, and retention.
The legislation will be introduced in two pieces in the Senate: the SHIPS for America Act and the Building SHIPS in America Act.
The act establishes that it is the policy of the United States to have a United States-flagged strategic fleet capable of meeting American national and economic security objectives.
The Secretary of Transportation and Secretary of Defense are required to acquire and maintain sufficient civil, commercial, and military sealift capability. In carrying out these provisions, the United States should work with treaty allies to meet sealift requirements.
The Secretary of Defense and Secretary of Transportation are required to provide reports, briefings, and assessments to Congress related to these objectives.
The act amends the Foreign Shipping Practices Act and the Controlled Carrier Act to enhance the Federal Maritime Commission’s authority to prevent foreign countries and foreign flag operators from carrying out unfair trade practices for both cargo and cruise vessels.
One section of the act establishes a new program – the Strategic Commercial Fleet Program – to support the development of US-built, US-flagged vessels in international commerce.
Under this program, the Maritime Administration shall solicit bids for commercially viable, militarily useful, privately owned vessels to meet national security requirements and maintain a US presence in international commercial shipping.
The program will have a goal for establishing a fleet of 250 US-flagged vessels in international commerce.
The act raises the percentage of US government cargo that must sail on US-flagged vessels from 50 per cent to 100 per cent. It also includes a sense of Congress affirming the Maritime Administrator is responsible for determining the non-availability of qualified vessels of the United States.
Currently, any US-flagged vessel must pay a duty of 50 per cent for any repairs made on the vessel in a foreign shipyard of an allied country. The act increases the duty to 200 per cent for any repairs made in shipyards in foreign countries of concern (i.e., China) and 70 per cent for all other repairs in other countries.
