A bipartisan bill aimed at invigorating U.S.-flag shipping for international government cargo was introduced Friday by Rep. John Garamendi, D-Calif.
The Rebuilding the United States-Flag International Fleet Act, co-sponsored by Rep. Bob Gibbs, R-Ohio, would restore a requirement that at least 75% of gross seaborne tonnage for international food aid programs be carried on US-flagged vessels.
The requirement, in place from 1985 to 2012, was repealed by the current law that lowered the minimum tonnage requirement to 50%.
“For too long, Congress and both Democratic and Republican presidents have allowed the commercial fleet of U.S.-flagged, ocean-going vessels to dwindle,” Garamendi asserted while introducing the bill. “The global supply chain crunch during the height of the COVID-19 pandemic, the Russian invasion and blockade of Ukraine, and the People’s Republic of China’s island building in the South China Sea and saber-rattling in the Taiwan Strait have shown that the United States cannot remain reliant on foreign vessels flying flags of convenience.”
A report published in September by the U.S. Government Accountability Office found that the use of U.S.-flag vessels by the U.S. Agency for International Development and the U.S. Department of Agriculture decreased for both agencies by about 46% from 2012-20.
“This decline was due, in part, to a statutory reduction in the minimum percentage of food aid required to be carried on U.S.-flag vessels from 75% to 50%, beginning in fiscal year 2013,” the report concluded.
In addition to restoring the 75% government export minimum, the legislation, according to Garamendi, would also:
— Restore a DOT requirement reimbursing international food aid programs for any cost premium under the U.S.-flagged vessel cargo preference to protect the federal budget from increased shipping costs.
— Reaffirm the U.S. Maritime Administration as the only federal agency able to waive the U.S.-flag requirement for government cargo when such vessels are unavailable at fair and reasonable rates.
— Strengthen transparency and oversight by requiring public notice online of all waivers of the U.S.-flag requirement and timely notification to Congress, as required for Jones Act waivers.
— Allow foreign vessels seeking federal cargo contracts to be re-flagged into the U.S. registry for less than three years, provided they satisfy similar requirements as vessels enrolled in the Maritime Security Program.
— Clarify that the current U.S.-flagged vessel requirement for international food aid applies to all agricultural products, including processed food, and not just commodity crops.
