Noncontiguous Shipping Relief Act of 2024
Noncontiguous Shipping Relief Act of 2024
Plain Language Summary
# Noncontiguous Shipping Relief Act of 2024 — Plain Language Summary **What the Bill Does:** This bill would create an exception to the Jones Act, a long-standing federal law that requires ships transporting goods between U.S. ports to be American-built and American-owned. Under this bill, foreign ships would be allowed to carry cargo to and from non-mainland U.S. locations—specifically Alaska, Hawaii, Puerto Rico, and other U.S. territories—as well as between these locations and the mainland United States. Currently, these routes are restricted to U.S. ships that meet strict ownership and crew requirements. **Who It Affects:** The bill primarily affects shipping companies, consumers in Alaska, Hawaii, and U.S.
territories (who may benefit from lower shipping costs), and the American maritime industry. Supporters argue it would reduce shipping costs to remote U.S. locations by allowing more competition. Critics contend it could hurt U.S. shipping companies and workers by allowing foreign competition on these routes. **Current Status:** The bill is currently in committee and has not been passed. It was introduced by Rep. Ed Case (D-HI) in the 119th Congress, reflecting Hawaii's interest in potentially lowering the cost of shipping goods to the islands.
CRS Official Summary
Noncontiguous Shipping Relief Act of 2024This bill establishes a limited exception to coastwise laws to allow foreign-flag freight vessels to transport merchandise domestically to or from a port in the noncontiguous United States. The bill also addresses various issues related to foreign-flag freight vessels engaged in coastwise trade (i.e., domestic waterborne trade between U.S. ports). Under the coastwise laws, commonly known as the Jones Act, a freight vessel may not transport merchandise between U.S. ports unless it is U.S.-built, at least 75% owned by U.S. citizens, and mostly crewed by U.S. citizens. The bill authorizes qualifying foreign-flag vessels to transport merchandise between (1) a port in the contiguous United States and a port in the noncontiguous United States (i.e., Alaska, Hawaii, Puerto Rico, or a U.S. territory or possession); or (2) two ports in the noncontiguous United States. Under the bill, all foreign-flag freight vessels operating in U.S. coastwise trade must comply with the (1) minimum international labor standards applicable to U.S. seafarers, and (2) same environmental standards that apply to U.S. vessels.The bill authorizes such operators to participate in the Longshore and Harbor Workers’ Compensation program on behalf of masters and crew members they employ.The bill also requires foreign-flag vessel owners and operators engaging in coastwise trade to identify an agent for service of process, abide by U.S. tax and other laws, and maintain specified documentation on board. Additionally, lawsuits against such vessels alleging personal injury or death must be brought in U.S. district court.
Latest Action
Sponsor introductory remarks on measure. (CR E90-91)