House Passes Bill Increasing Cargo Preference to 100 Percent

nullAmerican Maritime Officers Services lobbyist Brenda Otterson congratulates Congressman Salud Carbajal and Congressman Mike Ezell for their efforts pushing more cargo for the U.S. Flag fleet. With them is M.E.B. A. Secretary-Treasurer Roland Rexha and Government Affairs Director Erick Siahaan.

The United States House of Representatives recently overwhelming passed a series of bills that continued the Trump administration’s goal of bolstering the U.S. flag fleet – most notably by increasing cargo preference for Department of Transportation cargoes to 100 percent.

By a vote of 373 – 14 on June 9, legislators approved H.R. 2035, the American Cargo for American Ships Act, a bipartisan legislation to increase the U.S.-flag cargo preference shipping requirement to 100 percent for all cargoes procured, furnished or financed by the Department of Transportation. The bill was sponsored by Congressman Salud Carbajal (D-CA), Ranking Member of the Coast Guard and Maritime Transportation Subcommittee and co-sponsored by the Subcommittee’s Chairman, Congressman Mike Ezell (R-MS).

Current federal law caps the amount of government-impelled cargo moved on U.S. flag vessels at 50 percent in most cases. Doubling that amount could provide the much-needed cargo to support an increased U.S. flag fleet.

“American cargo transported on American ships strengthens our economy, creates jobs, and protects our supply chains from external threats,” Carbajal said. “My bipartisan bill will strengthen the U.S. shipping fleet by ensuring that taxpayer-funded cargo is moved on U.S.-flagged ships. I’ll continue working across the aisle to get this bill across the finish line and signed into law.”

The cargo preference change now must be approved by the U.S. Senate before it can be signed into law. Since President Trump has been in office, he has signed an executive order calling for the increase of shipbuilding in the United States and has made it a mandate to decrease the nation’s dependency on foreign influence in the supply chain. Other congressional leaders have also pushed initiatives to bolster the domestic maritime industry and the U.S. Merchant Marine through proposed bills such as the SHIPS for America Act, which among other things would incentivize the use of American ships.

“This is a major victory for American workers, our national security, and our economy,” Ezell said. “The American Cargo for American Ships Act strengthens our maritime capabilities and ensures we’re not dependent on foreign vessels to move U.S. goods, especially during times of crisis. A strong U.S.-flagged fleet means a more secure and self-reliant America. I’m proud to see this bill, which keeps American cargo on American ships, restores fairness to our system, and gives our mariners a fighting chance against heavily subsidized foreign competitors, pass the House. I urge my colleagues in the Senate to act swiftly and send it to the President’s desk.”

The American Cargo for American Ships Act is supported by: American Maritime Congress, American Maritime Officers, American Maritime Officers Service, American Roll-on Roll-off, International Organization of Masters, Mates & Pilots, Marine Engineers’ Beneficial Association, Maritime Institute for Research and Industrial Development, Sailors Union of the Pacific, Seafarers International Union, Transportation Institute, U.S. Ocean, Waterman Logistics, Hapag Lloyd USA, and American President Lines LLC.