# Plain Language Summary: Noncontiguous Shipping Relief Act of 2021

This bill makes it easier for foreign-owned cargo ships to deliver goods to Alaska and Hawaii by relaxing some of the strict rules that normally apply to shipping between U.S. ports. Currently, federal law requires that cargo moving between U.S. ports must be transported on American-built ships with American crews. This bill creates an exception for certain foreign ships carrying cargo to and from noncontiguous states—meaning Alaska, Hawaii, and U.S. territories that aren't connected to the mainland. If a foreign cargo ship meets certain requirements (it must be at least 1,000 tons, employ some U.S. citizens, and get a special certificate from the Transportation Department), it can now legally transport goods to these remote areas without following all the usual American shipping rules.

The practical effect is that shipping costs to Alaska and Hawaii could potentially decrease because companies will have more options for which ships they can use. Currently, the limited number of American vessels that can legally serve these routes means higher prices for consumers and businesses in those states. However, the bill includes several protections to prevent abuse. Foreign ship operators must name a legal representative in the U.S., follow all American environmental and tax laws, and keep records of their port visits. Crew members on these foreign ships must still receive the same labor protections and compensation as American sailors, and all vessels must meet international safety and environmental standards.

The bill essentially tries to balance two competing interests: reducing shipping costs for people in remote U.S. locations while maintaining labor protections for workers and environmental standards for American waters. It's a targeted change that only applies to cargo ships serving noncontiguous areas, not to the broader domestic shipping market between the continental United States and other ports.

Noncontiguous Shipping Relief Act of 2021

Case, Ed

Noncontiguous Shipping Relief Act of 2021 This bill revises coastwise laws, commonly known as the Jones Act, that govern domestic transportation of merchandise or passengers by vessels. The Jones Act requires that vessels transporting merchandise or passengers between Puerto Rico and other U.S. ports be built in the United States, be at least 75% owned by U.S. citizens, and be mostly crewed by U.S. citizens. The bill exempts foreign-flag vessels transporting merchandise on a route in noncontiguous trade from Jones Act requirements. The bill sets forth other requirements, including (1) labor standards, (2) minimum requirements for vessels engaging in the transportation of cargo or merchandise in domestic coastwise trade, (3) environmental standards, and (4) requirements for certain non-citizens that irregularly engage in domestic coastwise trade.