US bill could open coastal trade to allied-built vessels
If adopted, the Bill could be a turning point for the Jones Act market (Source: PublicDominPictures.net)
US representatives Ed Case (Democrat, Hawaii) and James Moylan (Republican, Guam) have introduced the Merchant Marine Allies Partnership Act to the House of Representatives. The bill proposes targeted exceptions to the Merchant Marine Act of 1920, better known as the Jones Act, which requires vessels engaged in US coastal trade to be built in the US.
Under the proposal, vessels constructed in allied nations such as Japan and South Korea could receive conditional approval for deployment on the coast. The bill also includes a 50% foreign repair tax exemption for major vessel modifications carried out in allied shipyards.
If enacted, the measure could expand order and repair opportunities for Japanese and South Korean shipbuilders, which have so far been excluded from the US Jones Act market. It may also factor into ongoing US-Japan tariff negotiations, where shipbuilding and maritime trade remain among the key points of discussion.
The Jones Act, intended to maintain US shipbuilding capacity and protect domestic shipping, has faced repeated calls for reform. Industry observers note that the proposed legislation reflects both strategic defence cooperation with allied nations and practical pressures on US yards, which face capacity constraints and higher production costs.
