American Cargo for American Ships Act

American Cargo for American Ships Act

This bill requires 100% of equipment, materials, and commodities procured, furnished, or financed by the Department of Transportation (DOT) and transported on ocean vessels to be transported on U.S.-flagged commercial vessels. (Current cargo preference laws require that a minimum percentage of federally financed ocean cargo be transported on U.S.-flagged commercial vessels. For civilian agencies and agricultural cargo, the minimum is generally 50%.)

Specifically, the bill imposes the requirement on DOT (for cargo it contracts for or procures for itself) and recipients of DOT funding (for cargo DOT has financed with federal funds or advanced funds for the recipient to obtain). As under current cargo preference laws, the requirement applies to the extent those vessels are available at fair and reasonable rates for U.S.-flagged commercial vessels, in a manner that will ensure fair and reasonable participation of U.S.-flagged commercial vessels by geographic area.

Summary by the Congressional Research Service.