American Cargo for American Ships Act

What this does

The bill raises the U.S.-flag shipping requirement for cargo tied to the Department of Transportation to 100 percent. It amends Section 55305 of title 46, the cargo preference law, by carving out a new exception for the Department of Transportation. When the Department procures, contracts for, or finances equipment, materials, or commodities with federal funds, the Secretary of Transportation or the recipient of that financing must take necessary and practicable steps to ensure that 100 percent of the gross tonnage moved on ocean vessels travels on privately owned commercial vessels of the United States. That percentage is computed separately for dry bulk carriers, dry cargo liners, and tankers. The requirement applies to the extent U.S. vessels are available at fair and reasonable rates, and it must be met in a way that ensures fair and reasonable participation of U.S. vessels by geographic area. The general cargo preference statute otherwise sets a lower baseline, and this bill applies the higher 100 percent share to DOT-financed cargo.