Noncontiguous Shipping Competition Act

This bill would loosen some shipping rules for routes between the mainland U.S. and places like Alaska, Hawaii, Puerto Rico, and U.S. territories. These routes are called “noncontiguous trade.” Today, the Jones Act says ships moving goods between two U.S. points must be built in the U.S., mostly U.S.-owned, and mostly U.S.-crewed. The bill would exempt a route from those rules unless there are already at least three U.S.-qualified shippers on that route, each carrying at least 20% of the goods, and none of them are under the same owner. The goal is to allow more competition on routes that don’t have enough carriers.

In plain terms, if a route to or from places like Alaska, Hawaii, Puerto Rico, or other U.S. islands doesn’t have at least three strong U.S.-flag carriers, other ships could be allowed to carry goods there. If three or more U.S.-qualified carriers each handle a fair share, the current rules would still apply.

• Who is affected: People and businesses shipping goods to and from Alaska, Hawaii, Puerto Rico, and U.S. territories; U.S.-flag shipping companies.
• What changes: Certain routes would be exempt from the Jones Act unless there are at least three U.S.-qualified carriers, each with at least 20% of the route’s volume and not under common ownership.
• When: If this bill becomes law, these changes would apply as described in the bill’s text.