The U.S. House of Representatives has passed the American Cargo for American Ships Act, a bipartisan bill introduced by Coast Guard and Maritime Transportation Subcommittee Ranking Member Salud Carbajal (D-CA-24) and Chair Mike Ezell (R-MS-04). The legislation aims to strengthen U.S. cargo preference laws and halt the decline of U.S.-flagged ships in international trade. It will now proceed to the Senate for further consideration.
Rep. Carbajal emphasized the economic and security benefits of transporting American cargo on American ships, stating, “My bipartisan bill will strengthen the U.S. shipping fleet by ensuring that taxpayer-funded cargo is moved on U.S.-flagged ships.” He expressed his commitment to working across party lines to see the bill enacted into law.
Rep. Ezell highlighted the importance of a strong maritime capability for national security and economic stability, saying, “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.”
The proposed legislation seeks to increase cargo preference for all U.S. Department of Transportation cargoes to 100 percent, compared to the current requirement under the Cargo Preference Act of 1954, which mandates that 50 percent of civilian agencies’ cargo be carried on U.S.-flagged vessels.
According to testimony from the Maritime Administration (MARAD) before the House Transportation and Infrastructure Committee in 2022, there has been a notable decline in U.S.-flagged ships involved in foreign trade over recent years. In 2012, there were 106 such ships; by four years later, this number had dropped to 77 but has since increased slightly to 87.
In support of compliance with U.S. cargo preference laws, Rep. Carbajal previously sent a letter in 2022 to MARAD Administrator Rear Admiral Ann Phillips urging more action.
The American Cargo for American Ships Act has garnered support from various maritime organizations including the American Maritime Congress, Seafarers International Union, and Hapag Lloyd USA among others.
