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Lawmakers press MARAD and TRANSCOM on maritime industrial base, cargo access and a contested Jones Act waiver
Summary
House members questioned MARAD and TRANSCOM about a decades-long decline in U.S. commercial shipbuilding, limits on government-preference cargo, and a recent Jones Act waiver that MARAD says was issued without consultation.
Members of the House Armed Services Committee spent substantial time examining the maritime industrial base and cargo access that underpin sealift and surge capacity.
MARAD Administrator Steve Carmel warned that the United States ‘‘has not built a commercial ship for sale into the global market since 1960’’ and described a U.S.-flag international fleet reduced to roughly 80 ships. Carmel argued the current architecture treats maritime capability as disparate assets rather than an integrated ecosystem and urged a maritime strategy grounded in commercial cargo access so fleets and shipyards can sustain themselves.
Republican and Democratic members pressed witnesses about a recent request by the Department of Defense to waive the Jones Act. Rep. John Garamendi said the waiver ‘‘came out of the blue’’ and asked whether TRANSCOM or MARAD were consulted. General Reed said he was not consulted and that Acquisition and Sustainment handled the letter; Administrator Carmel said MARAD was not consulted for the 501(a) waiver and deferred to the department’s economic analysis.
Members highlighted the SHIPS Act — legislation intended to boost U.S. shipbuilding and require a portion of certain exports to move on American-built, American-flag ships — as part of a policy response. Lawmakers and witnesses agreed that expanding programs such as the Tanker Security Program without growing access to preference cargo risks diluting utilization and undermining effectiveness.
Questions also covered human capital and credentialing: Carmel told the committee that maritime credentialing relies on 17 regional exam centers and paperwork systems that impede timely licensing for maritime academy graduates, and that MARAD is coordinating with the Coast Guard, unions and state academies on reforms.
Next steps requested by members included written follow-ups on MARAD’s retention initiatives, more detail on the maritime action plan, and how a national maritime strategy could be operationalized to increase commercial cargo participation and revitalize shipbuilding. The hearing concluded with no formal votes.
