Sponsors (3)
Official title: To amend title 46, United States Code, to exempt certain noncontiguous trade from the coastwise laws.
Introduced January 23, 2025 by Ed Case · Last progress January 23, 2025
The bill would lower costs and expand service options for noncontiguous routes by allowing more foreign/non‑U.S. vessels, but does so at the risk of U.S. maritime jobs, domestic shipbuilding capacity (with national security implications), and added regulatory complexity.
Shippers and consumers on noncontiguous routes (Alaska, Hawaii, territories) may get lower shipping costs because carriers can use more foreign or non-U.S.-built vessels when domestic thresholds aren't met.
Residents and businesses in noncontiguous areas could see improved service availability and more carrier options due to increased competition on routes where domestic carriers don't meet required volumes.
U.S. maritime workers and domestic vessel owners may lose routes and revenue as foreign or non-coastwise-qualified vessels gain market share, threatening maritime jobs.
U.S. shipyards and domestic vessel builders could face reduced demand (weakening Jones Act–style protections), risking long-term industry decline with national security and taxpayer implications.
Carriers and shippers may face increased regulatory complexity and litigation over definitions like 'regularly operate' and 'volume of goods,' raising compliance costs.
Based on analysis of 2 sections of legislative text.
Allows non-coastwise vessels on noncontiguous routes unless three independent coastwise operators each carry ≥20% of route volume and none share ownership.
Creates a limited exception to U.S. coastwise laws for noncontiguous trade routes by allowing non-coastwise vessels to carry cargo on a route unless three specific competitive conditions are met among coastwise-qualified vessel operators. The exception applies only when there are not at least three independent coastwise-qualified operators each carrying at least 20% of the route's volume and none under common ownership, preserving coastwise preference where a robust, independent domestic market already exists.