# Plain Language Summary: Noncontiguous Shipping Relief Act of 2024

This bill makes a significant change to America's shipping rules by allowing foreign-owned cargo ships to carry goods between non-connected U.S. territories like Hawaii, Alaska, and Puerto Rico. Currently, strict federal law requires that cargo shipped between U.S. ports must travel on American-owned and American-crewed vessels. This bill creates an exception specifically for shipping between these distant U.S. territories, letting foreign ships do this work if they meet certain requirements—mainly that they employ American crew members and get special documentation from the Transportation Department.

The practical effect is that shipping companies could use cheaper foreign vessels for routes to Alaska, Hawaii, and Puerto Rico instead of being forced to use more expensive American ships. This could lower costs for businesses and potentially reduce prices for consumers in these remote areas, since shipping is a major expense that gets passed along. However, this change means fewer jobs for American merchant sailors on these routes and less business for American shipping companies that currently have a monopoly on this trade. The bill tries to balance this by requiring foreign ships to follow the same labor standards, environmental rules, and safety requirements as American vessels, and it allows crew members to participate in worker compensation programs.

The bill also includes several safeguards. Foreign ship owners operating in U.S. waters must name a legal representative in the U.S., follow all American environmental and tax laws, and keep records of their port visits. All vessels—whether American or foreign—must meet international labor standards for seafarers and comply with U.S. environmental regulations. These provisions are meant to ensure that allowing foreign ships doesn't create a race to the bottom on worker protections or environmental standards.

Noncontiguous Shipping Relief Act of 2024

Case, Ed

Noncontiguous Shipping Relief Act of 2024This bill establishes a limited exception to coastwise laws to allow foreign-flag freight vessels to transport merchandise domestically to or from a port in the noncontiguous United States. The bill also addresses various issues related to foreign-flag freight vessels engaged in coastwise trade (i.e., domestic waterborne trade between U.S. ports).&nbsp;Under the coastwise laws, commonly known as the Jones Act, a freight vessel may not transport merchandise&nbsp;between U.S. ports unless it is U.S.-built, at least 75% owned by U.S. citizens, and mostly crewed by U.S. citizens. The bill authorizes&nbsp;qualifying foreign-flag vessels to transport merchandise between (1) a port in the contiguous United States and a port in the noncontiguous United States (i.e., Alaska, Hawaii, Puerto Rico, or a U.S. territory or possession); or (2) two ports in the noncontiguous United States.&nbsp;Under the bill, all foreign-flag freight vessels operating in U.S. coastwise trade must comply with the (1) minimum international labor standards applicable to U.S. seafarers, and (2) same environmental standards that apply to U.S. vessels.The bill authorizes such&nbsp;operators to participate in the Longshore and Harbor Workers’ Compensation program on behalf of masters and crew members they employ.The bill also requires foreign-flag vessel owners and operators engaging in coastwise trade to identify an agent for service of process, abide by U.S. tax and other laws, and maintain specified documentation on board.&nbsp;Additionally, lawsuits against such vessels alleging personal injury or death must be brought in U.S. district court.&nbsp;