Congress mulls bill to restore 75pc cargo quota for US-flagged ships

MARYLAND Democratic Congressman Elijah Cummings and Louisiana Republican Congressman Jeff Landry have introduced a bill - the Saving Essential American Sailors (SEAS) Act - to reverse recent legislation that would restore a rule that 75 per cent of US food aid be carried on American ships.

The recent highway bill reduced the share demanding that US-flagged vessels carry food aid to 50 per cent in an effort to reduce shipping costs, reported American Shipper.

The Congressional Budget Office said cutting reducing the quota to 50 per cent would save US$108 million-$110 million a year, but US Maritime Administration (MARAD) set savings at $15 million, adding that it would cost 2,000 jobs and a job loss for 640 for US seamen.

Mr Cummings and Mr Landry said the quota reduction "could cause the US-flagged fleet to lose $90 million a year, citing MARAD analysis, adding that 16 US vessels might re-flag because of the change.

"The number of vessels in the US flag and the percentage of US cargo carried on American vessels has continued to fall in recent decades," said Mr Cummings. "Currently, there are fewer than 100 US-flagged vessels in the foreign trade, and these vessels carry less than two per cent of US cargo. If we allow a further decline, we risk leaving our economy and military dependent on foreign-flagged vessels manned by non-US citizens - a situation that would be intolerable," Mr Cummings said.

Said Mr Landry: "This is what happens when Washington rushes bills; we don't fully debate them or understand their ramifications. Section 100124 will mean that American taxpayers will be paying foreign workers while American mariners sit on the beach. I hope my colleagues from both sides of the aisle will join us in fighting for our American workers and quickly pass the SEAS Act."