Noncontiguous Shipping Competition Act

# Noncontiguous Shipping Competition Act Summary **What the Bill Does** The Noncontiguous Shipping Competition Act would modify the Jones Act, a long-standing law that requires ships carrying cargo between U.S. ports to be American-built, American-owned, and American-crewed. Specifically, the bill would create an exemption for routes serving noncontiguous U.S. territories like Hawaii, Alaska, and Puerto Rico. Under this exemption, foreign vessels could operate on these routes—but only if there isn't enough domestic shipping competition.

The exemption would kick in only when fewer than three independent U.S. shipping companies regularly serve a route, or when existing operators don't each control at least 20% of the cargo volume. **Who It Affects** This bill primarily impacts Hawaii and Alaska residents and businesses, where shipping costs are typically higher due to limited competition. It could also affect Puerto Rico. U.S.-based shipping companies that operate in these regions would face potential new competition if the exemption applies. Consumers in noncontiguous states might benefit from lower shipping costs if foreign competitors enter the market. **Current Status** The bill (HR 665) is currently in committee and has not yet been voted on by the full House of Representatives.