Rep. Bob Gibbs, R-Ohio, co-sponsored the Rebuilding the United States-Flag International Fleet Act, which would reinstate a requirement that at least 75% of gross seaborne tonnage for international food aid programs be carried on US-flagged vessels.
The requirement, which was in effect from 1985 to 2012, was repealed by current legislation, which reduced the minimum tonnage requirement to 50%.
"For far too long, Congress and both Democratic and Republican presidents have allowed the commercial fleet of United States-flagged, ocean-going vessels to dwindle," Garamendi said in introducing the bill. "The global supply chain crisis at the height of the COVID-19 pandemic, Russia's invasion and blockade of Ukraine, and the People's Republic of China's island building in the South China Sea and saber-rattling in the Taiwan Strait have demonstrated that the United States cannot continue to rely on foreign vessels flying flags of convenience."
According to a report released in September by the US Government Accountability Office, the use of US-flag vessels by the US Agency for International Development and the US Department of Agriculture decreased by about 46% between 2012 and 20.
"This decline was due, in part, to a statutory reduction in the minimum percentage of food aid required to be carried on U.S.-flag vessels from 75% to 50%, beginning in fiscal year 2013," according to the report.
In addition to restoring the 75% government export minimum, Garamendi's legislation would:
— Restore a DOT requirement that international food aid programs be reimbursed for any cost premium incurred as a result of the U.S.-flagged vessel cargo preference in order to protect the federal budget from increased shipping costs.
— Reaffirm the United States Maritime Administration as the sole federal agency with the authority to waive the U.S.-flag requirement for government cargo when such vessels are not available at fair and reasonable rates.
— Increase transparency and oversight by requiring online public notice of all waivers of the US-flag requirement, as well as timely notification to Congress, as required for Jones Act waivers.
— Allow foreign vessels seeking federal cargo contracts to be re-flagged into the United States registry for a period of no more than three years if they meet the same requirements as vessels enrolled in the Maritime Security Program.
— Make it clear that the current requirement for US-flagged vessels for international food aid applies to all agricultural products, including processed food, and not just commodity crops.