Lawmakers give US-flag shipping a cargo boost
The Cargo Preference Act of 1954 requires that 50% of civilian agencies' cargo and agricultural cargo be carried on U.S.-flag vessels, with the U.S. Department of Transportation's Maritime Administration (Marad) being the lead agency managing cargo preference compliance.
The American Cargo for American Ships Act would boost the 50% requirement to 100%.
The legislation is supported by several U.S.-based maritime labor groups and U.S.-flag shipping companies, including the International Organization of Masters, Mates & Pilots and Hapag Lloyd USA.
'American cargo transported by American ships bolsters our economy, creates more jobs, and protects our supply chains,' said U.S. Rep. Salud Carbajal, D-Calif., the lead sponsor of the bill, in a press statement when he introduced the bill in March.
The legislation, he said, '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.'
Carbajal noted in March that 106 U.S.-flag ships were participating in the U.S. foreign trades in 2012, according to Marad data, which dropped to 77 vessels in 2016. That number has since increased to 87 ships.
The House also passed on Monday the Maritime Supply Chain Security Act, legislation that would allow Port Infrastructure Development Program grants, administered by Marad, to be used by ports and marine terminals to replace Chinese-made gantry cranes, including the software used to operate the cranes.
In addition, the chamber passed the Secure Our Ports Act of 2025, which would bar Chinese, Russian, North Korean or Iranian state-owned enterprises from entering into contracts to own, operate or manage a U.S. port facility.
The three bills now head to the Senate.
Trump nominates Maersk executive to lead Maritime Administration
House passes bill to counter Beijing's influence over global ports
China in crosshairs of new ocean shipping reforms
Click for more FreightWaves articles by John Gallagher.
The post Lawmakers give US-flag shipping a cargo boost appeared first on FreightWaves.
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