MaritimeFedWatch

The United States restricts its domestic maritime trade, including its fisheries, to defined “United States citizens.”  Although maritime citizenship law is rigorous, it permits certain foreign investment provided vessels remain under U.S. citizen control.

On December 14, 2023, the U.S. Maritime Administration issued a Final Rule which makes its “Federal Ship Financing Program,” widely known as “Title XI,” more flexible.

The Biden Administration announced today a new federal-state offshore wind partnership to spur the installation of electricity generating wind turbines off the U.S. coast.

Following the closure of the Colonial Pipeline, two requests for Jones Act waivers were issued by the U.S. Department of Homeland Security on or about May 12 and May 13.

The closure of the Colonial Pipeline has given rise to discussions about whether the U.S. “Jones Act” should be waived to permit foreign tank vessels to transported refined petroleum products from the U.S. gulf coast to the U.S. east coast. The “Jones Act,” however, is not easy to waive and is rarely waived.

On June 11, 2020, U.S. Senator Roger Wicker, Chairman of the Committee on Commerce, Science, & Transportation, introduced the “Maritime Administration Authorization and Improvement Act.” The bill, to be considered by the U.S. Congress, would, among other things, re-authorize the U.S. Maritime Administration (MARAD).

U.S. House of Representatives and U.S. Senate negotiators reached agreement on the National Defense Authorization Act for Fiscal Year 2020 (S. 1790) on December 9, and the 2020 NDAA is likely to become law in the next few days. The 2020 NDAA contains a number of significant changes to existing law affecting the maritime industry including changes relating to the Maritime Security Program and new related programs, the offshore wind industry, the worldwide fishing industry, and the mission of the U.S. Maritime Administration.

The U.S. Maritime Administration has issued a notice regarding the collection of information on shipments subject to the Cargo Preference Act of 1954, which requires that at least 50% of government-impelled cargoes be shipped on U.S.-flag vessels. 

On May 29, 2019, the Senate Commerce Committee released to the public its draft bill to reauthorize the Maritime Administration (MARAD), S. 1417. In addition to reauthorizing most of the programs administered by MARAD, the bill includes a few new nuggets worth examining.

Today the U.S. Maritime Administration (MARAD) published two Advance Notices of Proposed Rulemaking seeking public comment on how to improve the process of demonstrating U.S. citizenship for certain maritime programs.

On July 17, 2018, the U.S. Court of Appeals for the District of Columbia Circuit dismissed the challenge by Matson Navigation Company, Inc. of U.S. Maritime Administration (MARAD) decisions approving vessel substitutions for APL Marine Services, Ltd.

On November 29, 2017, a panel of the National Academy of Public Administration issued its study entitled, “Maritime Administration: Defining its Mission, Aligning its Programs, and Meeting its Objectives.” The study was commissioned by MARAD in June 2017 in connection with President Trump’s first budget request submitted to Congress. The 140-page study examined all of MARAD’s functions and makes 27 recommendations.

On September 8, the U.S. Department of Homeland Security issued a waiver of the Jones Act with respect to the movement of refined petroleum products from certain states effective immediately and lasting seven days to be shipped to South Carolina, Georgia, Florida, and Puerto Rico.  On September 12, DHS issued clarifying guidance requiring DHS notifications associated with the waiver.

On September 8, the U.S. Department of Homeland Security issued a waiver of the Jones Act with respect to the movement of merchandise between points in the United States effective immediately and lasting seven days for the movement of refined petroleum products to be shipped from New York, Pennsylvania, Texas, and Louisiana to South Carolina, Georgia, Florida, and Puerto Rico.  

The National Defense Authorization Act (NDAA) for Fiscal Year 2018 (H.R. 2810), reported favorably by the U.S. House of Representatives Armed Services Committee on June 28, 2017, would amend existing law to permit the acquisition of foreign-built vessels for the U.S. fleet of military reserve vessels.

The U.S. Maritime Administration (MARAD) commissioned a “Maritime Alignment Study” from the National Academy of Public Administration (NAPA) in May 2017. It is anticipated that the results of the study will be made public in the fall of 2017.