This bill simplifies the requirements for vessels to qualify for coastwise trade endorsements while mandating the Coast Guard to establish new safety and security regulations within 90 days.
Tom McClintock
Representative
CA-5
The Open America's Waters Act simplifies the requirements for vessels to qualify for coastwise trade endorsements along U.S. coasts. This legislation repeals outdated restrictions on who can participate in this domestic trade. Crucially, the Coast Guard is mandated to issue new regulations within 90 days to ensure all participating vessels meet current safety and security standards.
New 'Open America's Waters Act' Scraps Old Shipping Rules, Mandates New Coast Guard Safety Standards Within 90 Days
The new Open America's Waters Act is all about shaking up who gets to move cargo and people along the U.S. coast—what policy folks call "coastwise trade." The bill’s main move is repealing an old section of maritime law (specifically, Section 12132 of Title 46) that governed certain restrictions on who could get a “coastwise endorsement.” Essentially, they are simplifying the bureaucratic requirements for a ship to qualify for this domestic trade, making it easier for more vessels to enter the market.
The Trade-Off: Easier Access Meets Tighter Deadlines
This isn't just a simple deregulation, though. While the bill clears the way for more vessels, it immediately tasks the Commandant of the U.S. Coast Guard with a tight 90-day deadline to issue brand-new regulations. These new rules must cover "all the necessary safety and security standards" for every vessel in the coastwise trade. Think of it like this: the bouncer is removing the old, complicated entry requirements (the trade restrictions) but is immediately told to write a new, comprehensive safety manual for everyone who walks through the door—and they only have three months to do it. For a logistics manager or a small business owner who relies on coastal shipping, this could mean more options and potentially lower costs down the line due to increased competition, but the safety rules governing those ships are currently a blank page.
Who Benefits from the Open Door?
By repealing the old restrictions, the bill benefits vessel owners and operators who previously couldn't meet the now-defunct eligibility requirements. They get a faster, clearer path to obtaining the necessary coastwise endorsement. This could be a boon for companies looking to expand their fleet or new players trying to break into the domestic shipping market. For everyday consumers, this could eventually translate into minor cost savings if increased competition drives down shipping rates for goods moved between U.S. ports, from Florida citrus to West Coast lumber.
The 90-Day Safety Scramble
The biggest variable here is the Coast Guard’s mandate. The bill gives the Commandant significant authority to define what constitutes "necessary safety and security standards." This is where the rubber meets the road. If the new regulations are robust and implemented quickly, the maritime industry continues safely with added competition. However, if the Coast Guard, facing a tight 90-day window, issues rules that are too vague, too weak, or simply delayed, there’s a risk that less safe or poorly maintained vessels could enter the domestic fleet. This potential gap is a concern for existing operators who already adhere to stringent standards, and for the public who relies on the safe transport of everything from oil to essential goods. The rest of the bill is largely a technical cleanup, removing references to the now-repealed Section 12132 across various parts of Title 46—including rules for tank vessels and liquefied gas tankers—meaning the safety of these specialized ships will now rely entirely on the new, forthcoming regulations.