Americas News
New Bill Seeks to Shift Chinese Cargo Onto US-Flagged Ships
US senators have introduced a new bill seeking to shift more Chinese exports to America onto US-flagged vessels.
Senators Mark Kelly and Todd Young introduced the 'Ships for America Act' on Thursday, Kelly said in a statement on his website.
Among other measures, the bill would seek to move at least 10% of US import cargo from China onto US-built, flagged and crewed vessels. 100% of US government cargo would be required to move on US vessels, up from 50% at present.
US-flagged vessels would also be granted priority access to US ports in the event of delays.
"We've always been a maritime nation, but the truth is we've lost ground to China, who now dominates international shipping and can build merchant and military ships much more quickly than we can," Kelly said in the statement.
"The SHIPS for America Act is the answer to this challenge.
"By supporting shipbuilding, shipping, and workforce development, it will strengthen supply chains, reduce our reliance on foreign vessels, put Americans to work in good-paying jobs, and support the Navy and Coast Guard's shipbuilding needs.
"I'm excited to introduce this comprehensive, fully paid for legislation today alongside my Republican and Democratic colleagues and our partners representing all parts of the industry, and together we're going to work to get this effort across the finish line."
Lars Jensen, CEO of container consultancy Vespucci Maritime, suggested the bill could have a significant impact if passed.
"In short, if this is applied as proposed it will increase shipping costs for US importers and exporters - except those exporters who are slated for government subsidies," Jensen said in a LinkedIn post on Thursday.
"More importantly it will create significant supply chain headaches for individual US shippers needing to clearly measure the share of cargo moved on US ships - especially if much of their cargo is from origins not necessarily served by such US vessels.
"It could significantly benefit transhipment hubs such as Busan and Singapore to shift Chinese goods into US vessels for shippers needing to meet their 10% quota."
