Trump plans to put forward a proposal to expand the size of the fleet flying the American flag
According to a report by Reuters citing informed sources, the Trump administration of the United States is considering a proposal to establish an international ship registration system in the U.S. Virgin Islands (USVI), aiming to expand the size of small commercial fleets flying the U.S. flag.
At present, there are approximately 187 registered fleets in the United States, among which only 80 are involved in international trade. For decades, it has been difficult to attract shipowners to register ships in the United States due to high costs, heavy taxes and requirements such as the need to hire American crew members.
Eric Dawicki, the president of the Center for Ocean Policy and Economy (COPE) of the United States, said that using the U.S. Virgin Islands might be the most effective way to "strengthen the U.S. maritime posture" because the region can offer a registration system controlled by the United States while avoiding the high cost restrictions of domestic registration in the United States. COPE has submitted the proposal to US officials.
All commercial vessels must be registered with a specific country or jurisdiction (i.e., "fly the national flag") to comply with safety and environmental protection regulations. An American official said that the proposal has been submitted to the National Security Council, but the progress is still unclear. Another official confirmed that the National Security Council had taken note of the proposal. White House and U.S. Virgin Islands officials did not respond to requests for comment.
Although some lawmakers support the registration plan for the U.S. Virgin Islands, the proposal may be opposed by labor unions and groups advocating for the revitalization of the domestic shipbuilding industry. Salvatore Mercogliano, an associate professor of history at Campbell University, believes: "The U.S. Virgin Islands is an alternative, but it may be difficult to gain broad support for expanding the U.S. fleet."
At present, most registered ships in the United States are bound by the century-old Jones Act. The bill requires that U.S.-registered ships must be built in the United States, employ American crew members and be owned by American individuals or entities. Shipping consultant Basil Karatzas said that these regulations were originally intended to protect American shipowners, but ultimately restricted the expansion of the American fleet.
On April 30th, members of Congress from both parties in the United States proposed the "SHIPS for America" Act, aiming to secure stable financial support for the U.S. maritime industry. Davich said that the registration system of the U.S. Virgin Islands would complement the Ships Act and would not affect coastal shipping or the Jones Act.
At present, there are approximately 187 registered fleets in the United States, among which only 80 are involved in international trade. For decades, it has been difficult to attract shipowners to register ships in the United States due to high costs, heavy taxes and requirements such as the need to hire American crew members.
Eric Dawicki, the president of the Center for Ocean Policy and Economy (COPE) of the United States, said that using the U.S. Virgin Islands might be the most effective way to "strengthen the U.S. maritime posture" because the region can offer a registration system controlled by the United States while avoiding the high cost restrictions of domestic registration in the United States. COPE has submitted the proposal to US officials.
All commercial vessels must be registered with a specific country or jurisdiction (i.e., "fly the national flag") to comply with safety and environmental protection regulations. An American official said that the proposal has been submitted to the National Security Council, but the progress is still unclear. Another official confirmed that the National Security Council had taken note of the proposal. White House and U.S. Virgin Islands officials did not respond to requests for comment.
Although some lawmakers support the registration plan for the U.S. Virgin Islands, the proposal may be opposed by labor unions and groups advocating for the revitalization of the domestic shipbuilding industry. Salvatore Mercogliano, an associate professor of history at Campbell University, believes: "The U.S. Virgin Islands is an alternative, but it may be difficult to gain broad support for expanding the U.S. fleet."
At present, most registered ships in the United States are bound by the century-old Jones Act. The bill requires that U.S.-registered ships must be built in the United States, employ American crew members and be owned by American individuals or entities. Shipping consultant Basil Karatzas said that these regulations were originally intended to protect American shipowners, but ultimately restricted the expansion of the American fleet.
On April 30th, members of Congress from both parties in the United States proposed the "SHIPS for America" Act, aiming to secure stable financial support for the U.S. maritime industry. Davich said that the registration system of the U.S. Virgin Islands would complement the Ships Act and would not affect coastal shipping or the Jones Act.
