H.R.2035 - American Cargo for American Ships Act (119th Congress)
Summary
H.R. 2035, the "American Cargo for American Ships Act," amends Title 46 of the United States Code. It mandates that the Secretary of Transportation ensure that all cargo procured, furnished, or financed by the Department of Transportation is transported on privately-owned U.S. commercial vessels.
The bill requires that 100% of the gross tonnage of equipment, materials, or commodities transported on ocean vessels be carried on U.S. flagged ships. This is contingent on the availability of these vessels at fair and reasonable rates.
The Act aims to bolster the U.S. maritime industry by prioritizing American ships for government-related cargo transportation.
Expected Effects
The primary effect of this bill is to increase the demand for U.S.-flagged commercial vessels. This will likely lead to more business for American shipping companies and potentially create jobs in the maritime sector.
However, it could also increase transportation costs for the Department of Transportation if U.S. vessels are more expensive than foreign alternatives. This could affect the overall cost of projects and initiatives funded by the Department of Transportation.
Ultimately, the bill aims to strengthen the domestic shipping industry and reduce reliance on foreign vessels for government-related cargo.
Potential Benefits
- Increased business for U.S. shipping companies: The bill guarantees a larger share of government cargo for American vessels.
- Job creation in the maritime sector: Increased demand for U.S. flagged ships could lead to more jobs for American mariners and related industries.
- Strengthened domestic maritime industry: The bill supports the growth and competitiveness of the U.S. shipping industry.
- Reduced reliance on foreign vessels: The bill promotes greater self-reliance in transporting government cargo.
- Potential boost to related industries: Ship building, maintenance, and port operations could also benefit from increased activity.
Potential Disadvantages
- Increased transportation costs: Using U.S. flagged vessels may be more expensive than using foreign vessels, potentially increasing the cost of government projects.
- Limited availability of U.S. vessels: If U.S. vessels are not readily available, it could cause delays in transporting cargo.
- Potential for higher prices: U.S. shipping companies may increase their prices knowing that they have a guaranteed share of government cargo.
- Reduced competitiveness: The bill could shield U.S. shipping companies from international competition, potentially reducing their incentive to innovate and improve efficiency.
- Possible trade disputes: Other countries may view this bill as protectionist and retaliate with similar measures.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate commerce with foreign nations and among the several states. By prioritizing U.S. flagged vessels for government cargo, the bill is essentially regulating commerce to benefit the domestic shipping industry.
However, some might argue that the bill could potentially conflict with international trade agreements, which could raise constitutional concerns related to the treaty power (Article II, Section 2, Clause 2). It could also be argued that it violates the spirit of free trade, although the Constitution does not explicitly mandate free trade.
Overall, the bill's alignment with the Constitution is reasonably sound, particularly under the broad interpretation of the Commerce Clause.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).