0
Noncontiguous Shipping Competition Act
2/26/2025, 6:51 PM
Summary of Bill HR 665
The coastwise laws, also known as the Jones Act, require that all goods transported by water between US ports must be carried on US-built, owned, and operated vessels. This has been a longstanding requirement aimed at protecting the US maritime industry and ensuring national security.
However, certain noncontiguous territories of the US, such as Hawaii, Alaska, Puerto Rico, and Guam, face unique challenges due to their geographic isolation. These territories rely heavily on maritime transportation for goods and services, and the coastwise laws can significantly increase costs and limit options for shipping. Bill 119 HR 665 seeks to address this issue by providing exemptions for certain noncontiguous trade, allowing for more flexibility in shipping options and potentially reducing costs for consumers in these territories. This exemption would apply to goods transported between noncontiguous territories and the mainland US, as well as between noncontiguous territories themselves. Supporters of the bill argue that it will help to promote economic growth and improve access to goods and services in noncontiguous territories. However, opponents raise concerns about potential impacts on the US maritime industry and national security. Overall, Bill 119 HR 665 represents an important effort to address the unique challenges faced by noncontiguous territories in the US and to promote more efficient and cost-effective maritime transportation in these regions.
Congressional Summary of HR 665
Noncontiguous Shipping Competition Act
This bill revises coastwise laws, commonly known as the Jones Act, that govern domestic transportation of merchandise or passengers by vessels.
The Jones Act generally requires that a vessel transporting merchandise or passengers from one U.S. point to another U.S. point be (1) built in the United States, (2) at least 75% owned by U.S. citizens, and (3) mostly crewed by U.S. citizens. The act also includes several exemptions and exceptions.
The bill exempts carriage on a route in noncontiguous trade from Jones Act requirements unless (1) at least three owners or operators of coastwise qualified vessels regularly operate such a vessel on the route, (2) each of such owners or operators transports at least 20% of the volume of goods on that route, and (3) none of such owners or operators are under common ownership. (Generally, noncontiguous trade is trade between two U.S. points where at least one of the points is in Alaska, Hawaii, Puerto Rico, or an insular territory or U.S. possession.)
