A new law is being proposed in the United States that could significantly disrupt the container shipping industry. The law would require at least 10% of goods imported from China to the U.S. to be transported on ships that meet three specific conditions:
Built in the U.S. – The ships must be constructed in American shipyards.
Registered in the U.S. – The ships must fly the U.S. flag, meaning they are officially registered and licensed as American vessels.
Staffed by American crews – The people operating and working on these ships must be U.S. citizens or permanent residents.
This would start in 2029. Senator Mark Kelly, a Navy veteran and the first graduate of the U.S. Merchant Marine Academy to join Congress introduced the bill. He says America has always been strong in shipping, but lately, it’s fallen behind. China is now leading, building more ships and controlling global shipping. Kelly believes this law, called the SHIPS for America Act, will help the U.S. catch up.
There are less than 200 American ships doing big ocean jobs at the moment. Meanwhile, China builds almost one-third of the world’s ships. Companies like Matson, APL (owned by a French company), and Maersk Line Ltd. have some American ships, but they’re just a small part of the shipping world. This law aims to change that by requiring more goods to be moved on American ships.
The SHIPS for America Act includes other big changes too. For example, only 50% of U.S. government cargo has to go on American ships. This law would raise that to 100%. It also aims to increase the number of U.S.-flagged ships to 250 within the next 10 years—more than double what there is now.
Another part of the law would give priority to American ships at U.S. ports. This rule would let American ships go first. The law also creates a “maritime security czar” to make sure U.S. shipping stays secure and runs well.
To pay for these changes, the bill would create a Maritime Security Trust Fund. This fund would collect money from shipping fees and use it for security and infrastructure. The law also plans to cut down on complicated rules to help U.S.-flagged ships compete with foreign ones. It includes tax breaks for shipyards and money to train workers for maritime jobs.
Senator Kelly says more American ships mean less reliance on foreign ships, especially during emergencies. This would also create good-paying jobs and strengthen the U.S. Navy and Coast Guard.
The bill has support from both political parties. Senator Todd Young, a Republican, and Representatives John Garamendi and Trent Kelly, both Democrats, are backing it. They all agree that America needs to improve its shipping industry.
This law could create thousands of jobs in the U.S., not just for people working on ships but also for those building them and managing the industry. The tax credits and training programs aim to help people get into these careers.
The law is also about national security. Having a strong fleet of American ships means the U.S. can handle crises better without relying on foreign help. This is important during conflicts or natural disasters.
The bill’s long-term goal is to build a stronger U.S. maritime industry that can compete globally. This includes building better ships and training more workers to operate them.
By leveraging their expertise and resources, Lading Logistics aims to provide efficient and reliable international shipping and logistics solutions for their clients.
