US DEVELOPMENTS – JUNE 2025
Attached at Annex A, please find the monthly report prepared by the Chamber of Shipping of America (CSA) for June 2025.
The report at Annex A covers the following:
1. Announces that Sean Kline will become CEO and President of CSA from July 1, 2025, succeeding Kathy Metcalf, who moves into the role of President Emeritus. Metcalf, who led CSA since 2015, will continue supporting members in her new role and Kline will also remain active in national and international maritime policy forums;
2. Provides an overview of The One Big Beautiful Bill Act (HR 1), which is a sweeping 1,000+ page proposal covering a broad range of issues, including only two provisions related to energy and shipping: a $1 million fee on LNG trade with non-free trade agreement countries and a 125% increase in U.S. tonnage taxes;
3. Outlines that the SHIPS for America Act was introduced in the House and Senate in late April/early May and split into two Senate bills – S 1541 (non-tax) and S 1536 (tax) – due to referral rules. While CSA broadly supports the legislation, it opposes four provisions, including increased port fees, higher shipyard duties, liability limit changes and discriminatory investment credits. No hearings have been held yet, and progress is delayed as Congress focuses on reconciliation bills, though efforts to schedule hearings are ongoing past the July 4th target;
4. Makes a note that the Secure Our Ports Act (HR 252) bans U.S. ports from contracting with Chinese, Russian, North Korean or Iranian-owned entities. It passed the House on June 9, 2025, and was sent to the Senate Commerce Committee for review;
5. Notes that the American Cargo for American Ships Act (HR 2035) requires 100% of DOT-procured or financed cargo to be shipped on U.S.-flagged vessels when available at fair rates. The bill passed the house on June 9, 2025, and was sent to the senate Commerce Committee for review;
6. Makes a note that the Maritime Supply Chain Security Act (HR 2390) would allow port infrastructure funds to be used to replace Chinese port crane hardware or software. The bill passed the House on June 9, 2025, and was sent to the Senate Commerce Committee for further action;
7. Outlines that the Mariner Exam Modernization Act (HR 3331) creates a working group to update merchant mariner exams with current industry standards and technology. The USCG Commandant must implement the group’s plan and report regularly to Congress. The bill cleared the House Transportation Committee on June 11, 2025, and awaits a House vote;
8. Notes that the Open America’s Waters Act (HR 3940/S 2043), introduced June 12, seeks to repeal parts of the Jones Act to allow non-U.S. flag vessels in coastwise trade if they meet USCG rules. Both bills were referred to relevant committees but have seen no further action. Given the current administration’s support for U.S. maritime, these bills are unlikely to advance;
9. Provides an overview of the USTR seeking comments by July 7, 2025, on changes to Annex III (car carriers) and Annex IV (LNG carriers) tariffs. Annex III imposes fees on foreign-built vessels but unfairly affects U.S.-flagged ships and lacks a clear link to China’s violations. Annex IV removes LNG export license suspensions but ignores U.S. shipbuilding capacity limits. Both annexes are recommended for removal and better handled through separate legislation supporting U.S. shipbuilding; and
10. The report provides that the FMC is investigating whether foreign vessel flagging practices, including flags of convenience, harm U.S. shipping. Comments are due by August 20, 2025, on the impact of these practices and possible regulatory responses.
The ICS Secretariat will continue to monitor closely the issues outlined in the report above, and members are kindly invited to direct any comments or questions on the attached report to Meme Lamlum, Policy Adviser at meme.lamlum@ics-shipping.org.