H.R.2035 - American Cargo for American Ships Act (119th Congress)
Summary
H.R. 2035, the "American Cargo for American Ships Act," aims to amend Title 46 of the United States Code. The bill mandates that the Department of Transportation (DOT) ensure all cargoes procured, furnished, or financed by the DOT are transported on privately-owned commercial vessels of the United States.
This requirement applies to equipment, materials, and commodities transported on ocean vessels. The goal is to prioritize the use of U.S. flagged vessels for DOT-related cargo transportation.
The bill seeks to bolster the American maritime industry by directing government-funded cargo to U.S. ships, subject to availability at fair and reasonable rates.
Expected Effects
The primary effect of this bill would be to increase the demand for and utilization of U.S.-flagged commercial vessels. This could lead to more business for American shipping companies and potentially create jobs in the maritime sector.
However, it could also increase transportation costs if U.S. vessels are more expensive than foreign alternatives. This could impact the overall cost of DOT projects and potentially delay project timelines.
Ultimately, the bill aims to strengthen the U.S. maritime industry by ensuring a consistent stream of government-related cargo.
Potential Benefits
- Supports the U.S. Maritime Industry: Directs government-funded cargo to American ships, boosting business for U.S. shipping companies.
- Potential Job Creation: Increased demand for U.S. vessels could lead to more jobs in the maritime sector, including seafaring and shipbuilding.
- Strengthens National Security: Maintains a strong U.S. flag merchant marine, which can be utilized in times of national emergency.
- Economic Multiplier Effect: The maritime industry supports various related sectors, such as port operations, logistics, and manufacturing.
- Ensures Fair Competition: Aims to ensure fair participation of U.S. commercial vessels in government-related cargo transportation.
Potential Disadvantages
- Increased Transportation Costs: Using U.S. vessels may be more expensive than foreign alternatives, potentially increasing the cost of DOT projects.
- Potential for Delays: If U.S. vessels are not readily available, it could cause delays in the transportation of goods and materials.
- Reduced Flexibility: Restricting cargo to U.S. vessels limits the DOT's flexibility in choosing the most efficient and cost-effective transportation options.
- Possible Trade Retaliation: Other countries may view this as protectionist and retaliate with similar measures, harming U.S. exports.
- Limited Impact: The actual impact may be limited if the volume of DOT-related cargo is relatively small compared to overall U.S. maritime trade.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the U.S. Constitution is primarily related to Congress's power to regulate commerce (Article I, Section 8, Clause 3). This clause grants Congress the authority to regulate interstate and foreign commerce, which includes the maritime industry.
The bill could also be seen as promoting the general welfare (Preamble) by strengthening a vital industry and creating jobs. However, concerns could be raised if the bill unduly restricts trade or imposes excessive costs, potentially conflicting with the goal of promoting economic prosperity.
There are no apparent conflicts with individual rights or freedoms guaranteed by the Bill of Rights.
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).