Domestic Shipping

Domestic waterborne transportation is safe, reliable, efficient and an established mainstay of America's national transport system. The domestic shipping operations of the American merchant marine provide essential services to 41 states reaching 90 percent of the national population. This environmentally friendly form of surface transportation handles a combined total of over 1.1 billion short tons of cargo, which is about 23 percent of the ton-miles of all domestic surface transportation traffic. Domestic waterborne transportation contributes $7.7 billion to the gross domestic product annually in the form of freight revenue.

To encourage a strong U.S. merchant marine for both national defense and economic security, the nation's domestic waterborne commerce is reserved for vessels built in the United States, owned and crewed by American citizens, and registered under the American flag. U.S. laws governing the domestic transportation of passengers and cargo by water are generally known as the Jones Act, named after Senator Wesley Jones (R-WA), the sponsor of the Merchant Marine Act of 1920. The Jones Act continues to be the foundation for America's domestic shipping policy.

For further information, you can contact the Maritime Administration's Office of Cargo Preference and Domestic Trade (telephone 800-9US-FLAG, 202-366-4610, or email at cargo.marad@dot.gov).

The Maritime Administration is the Federal agency that provides assistance to the shipping public in locating suitable U.S.-flag vessels for carriage of cargo both domestically and internationally.  The Maritime Administration, through an agreement with the Department of Energy and the U.S. Customs Service, assists in locating suitable U.S.-flag tonnage when shippers of energy products report that they are having difficulty in locating vessels.

The Jones Act (46 U.S.C. 883, 19CFR 4.80 and 4.80b) requires that merchandise being transported by water between U.S. points must travel in U.S.-built and U.S.-citizen owned vessels that are documented by the U.S. Coast Guard for such carriage. The U.S. Customs Service has direct responsibility for enforcing the provisions of the Jones Act and is statutorily limited to granting waivers from the Act only in the interest of national defense or for a vessel in distress. Waivers of the Jones Act are extremely rare. When the U.S. Customs Service receives a request for a Jones Act waiver, it notifies the Maritime Administration immediately. The Maritime Administration then canvasses the U.S.-flag domestic shipping market to locate suitable tonnage, and advises Customs as to the availability of U.S.-flag tonnage within 48 hours. Often Customs refers shippers directly to the Maritime Administration if they need assistance in locating U.S.-flag tonnage. In these cases, the Maritime Administration is usually able to match the shipper's requirements with available U.S.-flag tonnage before a Jones Act waiver request is made.

For further information, you can contact the Maritime Administration's Office of Cargo Preference and Domestic Trade (telephone 800-9US-FLAG, 202-366-4610, or email at cargo.marad@dot.gov).

As authorized by Public Law 105-383, the Maritime Administration established a process to administratively waive the U.S.-build requirements of the Jones Act for certain small passenger vessels. Specifically, Title V authorizes the Secretary of Transportation to waive the domestic build requirements for foreign built or rebuilt small passenger vessels authorized to carry no more than 12 passengers. In order to grant such waivers, the Secretary must determine that employment of the vessel in the coastwise trade will not adversely affect U.S. vessel builders or the coastwise trade business of any person who employs vessels built in the United States.

Visit the Small Vessel Waiver Program Homepage for more information.

For further information, you can contact the Maritime Administration's Office of Cargo Preference and Domestic Trade (telephone 800-9US-FLAG, 202-366-4610, or email at cargo.marad@dot.gov).

While the Maritime Administration supports the use of coastwise qualified vessels in all circumstances, on rare occasions the launch of an exceptionally large oil rig or offshore platform may require the use of a foreign-built launch barge.

Therefore, Public Law 108-293 allows the Maritime Administration to make determinations allowing the use of foreign-built launch barges under very exacting circumstances, and after an application and review process.

One of the most critical elements of the application process is a requirement that the United States be provided with “timely information to maximize the use of coastwise qualified vessels." Therefore, our regulation requires that the platform owner or operator must notify the Maritime Administration at least 21 months prior to the contemplated use of a foreign-built launch barge.

There are other application conditions and requirements as well.

For further information, you can contact the Maritime Administration's Office of Cargo Preference and Domestic Trade (telephone 800-9US-FLAG, 202-366-4610, or email at cargo.marad@dot.gov).