HB2035, titled the American Cargo for American Ships Act, amends section 55305 of title 46 of the U.S. Code to require the Department of Transportation to take steps to ensure that cargoes it procures, contracts for, furnishes, finances, or otherwise supports with federal funds are transported on privately owned commercial vessels of the United States. The bill applies to equipment, materials, and commodities that may be shipped by ocean vessel and directs the Secretary of Transportation, or a financing recipient, to use commercially available U.S.-flag vessels when they are available at fair and reasonable rates.
The measure also specifies that the goal is to secure 100 percent of the gross tonnage of covered cargo on U.S. commercial vessels, calculated separately for dry bulk carriers, dry cargo liners, and tankers, while ensuring fair participation by U.S. vessels across geographic areas. In practical terms, it strengthens the preference for U.S.-flag shipping in federally supported transportation and financing arrangements and narrows the circumstances under which covered cargo could be moved on foreign vessels.
Impact
The bill would amend federal maritime cargo preference law in title 46 of the U.S. Code by adding a new exception and related requirements for Department of Transportation cargoes and federally financed shipments. It would affect DOT procurement and financing practices, as well as recipients of federal transportation funds, by imposing an affirmative obligation to prioritize privately owned commercial U.S. vessels when transporting covered cargo by sea. The bill does not create a new program, but it changes how existing federal cargoes must be handled and could increase demand for U.S.-flag commercial shipping capacity.
Sentiment
The available voting history suggests strong bipartisan support for the bill. It passed the House on suspension of the rules by a wide margin, 372-14, indicating broad agreement with the policy of favoring American-flag vessels for federally supported cargo. No committee transcript is available here, but the overwhelming House vote and the lack of recorded controversy in the provided materials suggest the bill was generally viewed favorably and as a relatively noncontroversial maritime policy measure.
Contention
The main policy issue is the extent to which the federal government should require cargo financed or procured by the Department of Transportation to move on U.S.-owned commercial vessels, especially when foreign-flag carriers may be available or cheaper. Potential concerns include cost, shipping capacity, and whether the 100 percent target is practical in all markets. Supporters likely emphasize strengthening the U.S. merchant marine, domestic shipping jobs, and national maritime security, while any opposition would likely focus on flexibility, market efficiency, and the availability of fair and reasonable rates.