American Cargo for American Ships Act
American Cargo for American Ships Act
Plain Language Summary
# American Cargo for American Ships Act Summary **What It Does:** This bill would require that 100% of cargo transported by ships be carried on U.S.-flagged vessels (ships registered under the American flag), when that cargo is purchased or funded by the Department of Transportation. Currently, federal law only requires 50% of such cargo to use U.S. ships. The requirement would apply to both cargo the DOT directly contracts for and cargo funded through DOT grants to other organizations, as long as American ships are available at reasonable prices. **Who It Affects:** The bill primarily impacts the shipping industry, particularly U.S.
commercial shipping companies and their workers, as it would guarantee them a larger share of federal government cargo shipments. It could also affect companies and organizations that receive DOT funding and need to transport goods by sea, as they may face higher shipping costs if U.S. ships charge more than foreign alternatives. Ultimately, taxpayers could see increased costs for federally-funded projects involving ocean cargo. **Current Status:** The bill has passed the House of Representatives and is now awaiting action in the Senate.
CRS Official Summary
American Cargo for American Ships ActThis bill requires 100% of equipment, materials, and commodities procured, furnished, or financed by the Department of Transportation (DOT) and transported on ocean vessels to be transported on U.S.-flagged commercial vessels. (Current cargo preference laws require that a minimum percentage of federally financed ocean cargo be transported on U.S.-flagged commercial vessels. For civilian agencies and agricultural cargo, the minimum is generally 50%.)Specifically, the bill imposes the requirement on DOT (for cargo it contracts for or procures for itself) and recipients of DOT funding (for cargo DOT has financed with federal funds or advanced funds for the recipient to obtain). As under current cargo preference laws, the requirement applies to the extent those vessels are available at fair and reasonable rates for U.S.-flagged commercial vessels, in a manner that will ensure fair and reasonable participation of U.S.-flagged commercial vessels by geographic area.
Latest Action
Received in the Senate and Read twice and referred to the Committee on Commerce, Science, and Transportation.