Sponsors (3)
The bill increases access to foreign and non‑U.S.‑built vessels for noncontiguous routes—potentially lowering costs and improving service—while risking losses in U.S. maritime jobs and shipbuilding capacity and adding regulatory uncertainty.
Shippers and consumers on noncontiguous routes (e.g., Alaska, Hawaii, U.S. territories) may gain access to foreign or non‑U.S.‑built vessels, increasing carrier options and potentially lowering shipping costs for businesses and households.
Residents and businesses in noncontiguous areas may see improved service availability and competition on routes when domestic carrier thresholds are not met, which can reduce service gaps and schedule disruptions.
U.S. vessel owners, operators, and maritime workers may lose routes to foreign or non‑coastwise‑qualified vessels, reducing domestic maritime jobs and operator revenues.
U.S. shipyards and the domestic shipbuilding industry may face reduced demand if foreign or non‑U.S.‑built vessels substitute for U.S.‑built ships, weakening long‑term industrial capacity tied to national security and increasing reliance on foreign builders.
Carriers, shippers, and small businesses may face increased regulatory complexity and litigation over ambiguous eligibility criteria (e.g., 'regularly operate', 'volume of goods', common ownership), raising compliance costs and uncertainty.
Based on analysis of 2 sections of legislative text.
Allows non-coastwise-qualified vessels to carry cargo on noncontiguous U.S. routes unless three independent coastwise operators each carry ≥20% of the route's cargo.
Introduced January 23, 2025 by Ed Case · Last progress January 23, 2025
Creates a narrow new rule that lets non-coastwise-qualified vessels carry cargo on routes between noncontiguous U.S. places (for example, islands and territories) unless there is clear, robust domestic competition on that route. The coastwise protection remains only when at least three different U.S.-qualified owners/operators regularly serve the route, each carries at least 20% of the cargo, and none are commonly owned.