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New U.S. shipping legislation proposes a fleet of 250 flagged cargo vessels

New U.S. shipping legislation proposes a fleet of 250 flagged cargo vessels

Posted on May 2, 2025   |  

The SHIPS for America Act was reintroduced on Wednesday, aiming to revitalize the U.S. maritime industry.

The legislation seeks the creation of a 250 U.S.-flag cargo vessel fleet, prioritizing tankers.

A Strategic Commercial Fleet Program is a key part of the legislation, supporting U.S.-built, -flagged, and -crewed vessels.

The number of U.S.-flagged merchant ships is set to rise from 80 to 250 under the new program.

The legislation increases cargo preference requirements, ensuring 100% of U.S. government cargo is carried on U.S.-flagged vessels.

The bill mandates that within 15 years, 10% of all cargo imported from China must be transported on U.S.-flagged vessels.

It proposes a $250 million annual shipbuilding incentive and $100 million annually for small shipyards through 2035.

Significant tax benefits include a 33% investment tax credit for vessel construction and 25% for shipyard facilities.