H.R. 3940: Open America's Waters Act

This bill, known as the Open America's Waters Act, intends to make significant changes to the regulations surrounding coastwise trade in the United States. Here are the key points of what the bill proposes:

Repeal of Current Restrictions

The bill seeks to repeal specific restrictions that currently govern coastwise trade. Under existing law, there are limitations on which vessels can engage in this type of trade, primarily favoring U.S.-flagged vessels. The proposed changes would allow more flexibility regarding which vessels can participate in coastwise trade.

Coastwise Endorsements

According to the bill, a coastwise endorsement can be issued for any vessel that meets U.S. laws to engage in coastwise trade. This broadens eligibility and could enable non-U.S. flagged vessels to operate in U.S. coastal waters under certain conditions.

Regulatory Framework

The bill requires the Commandant of the United States Coast Guard to issue new regulations within 90 days of the bill's enactment. These regulations will set forth safety and security requirements for all vessels that are allowed to engage in coastwise trade, ensuring that while the restrictions are lifted on vessel eligibility, safety protocols remain a priority.

Conforming Amendments

The bill includes several amendments to existing statutes related to the construction and operation of vessels. Some notable changes include:

• Changes to standards for tank vessels and the removal of certain construction qualifications.
• Modifications affecting liquified gas tankers and small passenger vessels.
• Repealing a section of the law that outlines the loss of coastwise trade privileges.
• Adjustments to the requirements for oil spill response vessels and other related sections of the law.

These amendments are aimed at streamlining the legal framework surrounding marine vessels involved in coastwise trade.

Impact on Coastwise Trade

By eliminating the limitations on which vessels can engage in coastwise trade, this bill potentially opens up the market to broader competition. This could result in various economic effects, including changes in shipping practices, costs, and availability of services.

Relevant Companies

• UPS - As a major logistics and transportation company, UPS may experience changes in its operational logistics due to increased competition in coastwise trade.
• CSX - Involved in transportation and logistics, CSX might be affected by shifts in trade routes and shipping patterns resulting from the repeal of certain restrictions.
• Alaska Air Group (ALK) - Given its operations in coastal areas, changes to coastwise trade regulations could influence its logistical operations and cost structures.