American Cargo for American Ships Act

This bill would require that all equipment, materials, and commodities procured or financed by the Department of Transportation (DOT) be transported on U.S.-flagged commercial vessels when moved by sea. This mandate would apply to cargo contracted directly by the DOT as well as cargo obtained by recipients using DOT federal funding. These requirements would be implemented to the extent that such vessels are available at fair and reasonable rates and in a manner that ensures participation across different geographic areas.

This bill directly affects the Department of Transportation (DOT) and any recipients of DOT funding who procure or finance equipment, materials, and commodities transported by sea. The legislation also impacts U.S.-flagged commercial vessels, which would be required to transport 100% of such cargo when available at fair and reasonable rates. Additionally, the bill affects entities involved in the transport of civilian and agricultural cargo that currently operate under lower percentage requirements for U.S.-flagged vessel usage.

• Full cargo preference for Department of Transportation shipments. Requires that 100% of equipment, materials, and commodities procured or financed by the Department of Transportation (DOT) be transported on U.S.-flagged commercial vessels when moved by ocean.
• Expansion of requirements to DOT funding recipients. Extends the U.S.-flagged vessel requirement to any cargo obtained by recipients using federal funds or advanced funds provided by the DOT.
• Availability and geographic participation standards. Maintains existing standards that apply the requirement only when U.S.-flagged vessels are available at fair and reasonable rates and ensures participation is distributed across geographic areas.

This bill modifies existing cargo preference laws by increasing the requirement for Department of Transportation-financed ocean cargo to be transported on U.S.-flagged commercial vessels from the current general minimum of 50% to 100%. It maintains existing statutory conditions regarding vessel availability at fair and reasonable rates and the geographic distribution of vessel participation.

The bill aims to increase the use of domestic shipping by requiring that 100% of equipment, materials, and commodities procured or financed by the Department of Transportation be transported on U.S.-flagged commercial vessels, provided they are available at fair and reasonable rates.