Allied Ships Get Green Light for U.S. Coastal Trade, Crewing Rules Relaxed Under New Partnership Act

The Merchant Marine Allies Partnership Act creates a new pathway for ships from allied foreign nations to operate within the U.S. domestic shipping market—known as coastwise trade. Essentially, it allows the Secretary of State to create a Foreign Ally Shipping Registry of approved countries. Vessels owned by U.S. nationals or these allied governments, flying either the U.S. or an ally’s flag, can receive five-year authorizations from the Secretary of Transportation to move goods between U.S. ports, potentially increasing the number of ships available for domestic logistics.

Opening the Coastline to Allies

This bill directly addresses the long-standing restrictions on who can participate in U.S. domestic shipping. For vessels from countries on the new Registry, the bill allows them to engage in coastwise trade. This is a big deal because it means more ships could be competing for U.S. domestic routes, which could potentially increase competition and capacity in the supply chain. However, this also means that vessels built or rebuilt in countries not on that list lose their coastwise trade privileges entirely, creating a clear line between approved and non-approved allies for maritime commerce.

The Crewing and Repair Perks

One of the most significant practical changes for the maritime industry is the crewing exemption. For these newly authorized “qualified vessels,” the Coast Guard will generally waive the standard U.S. citizenship and credentialing requirements for crew members, provided the crew are nationals of a country on the Foreign Ally Shipping Registry. If you’re a U.S. maritime worker, this is the part that hits close to home, as it opens up domestic routes to foreign labor from allied nations, potentially impacting employment and wage standards in the sector.

Furthermore, the bill offers a financial incentive to U.S. vessel owners. Currently, if a U.S.-documented ship gets repairs done overseas, the owner often has to pay a special tax (duty) when the vessel returns to the U.S. Under this Act, if those repairs are performed in a shipyard located in a country on the Foreign Ally Shipping Registry, that tax is waived. This could save U.S. shipping companies significant money on maintenance, making allied shipyards more attractive for major overhauls.

Who Holds the Keys to the Registry?

This whole system hinges on the Foreign Ally Shipping Registry, which is managed by the Secretary of State in consultation with the Coast Guard Commandant. While NATO members are automatically included, the Secretary has broad discretion over which other countries are added or removed. If a country is removed from the list, any vessel built there immediately loses its coastwise trade privileges. This mechanism grants the executive branch considerable power over who gets access to U.S. domestic trade and creates a layer of political risk for companies whose operations rely on the stability of that list. For businesses relying on these authorizations, the continued political alignment of their home country becomes a critical operational factor, adding an element of uncertainty to long-term planning.