Bill Overview
Title: SHIP IT Act
Description: SHIP IT Act This bill temporarily waives various requirements and makes other changes to address congestion at U.S. ports. For example, the Federal Motor Carrier Safety Administration must waive the hours of service limits (i.e., the number of hours a driver may operate a truck or motor carrier in a set period of time) and minimum age requirements that apply to commercial driver's licenses for individuals transporting cargo directly to or from a U.S. port. Additionally, the Coast Guard may temporarily allow foreign-built, -owned, and -crewed vessels to transport cargo between U.S. ports and engage in certain ship-to-ship transfers of cargo. Current coastwise law, commonly known as the Jones Act, generally requires that vessels transporting cargo domestically be U.S.-built, -owned, and -crewed. The Department of Defense must (1) inventory its intermodal equipment (e.g., trailers and chassis used to transport shipping containers) to identify equipment available for loan to trucking companies to relieve congestion at U.S. ports, and (2) establish a process to allow trucking companies to request the loan of such equipment. The Maritime Administration and the Federal Maritime Commission must jointly convene a meeting to discuss the long-term feasibility of, and strategies for, using land or property under the jurisdiction of U.S. inland ports for the storage and transfer of cargo containers. The Government Accountability Office must submit to Congress a report describing the adoption of technology at U.S. ports as compared to foreign ports.
Sponsors: Sen. Lee, Mike [R-UT]
Target Audience
Population: People involved in global trade and supply chain operations
Estimated Size: 5000000
- The bill targets issues within U.S. ports, which are a major part of the global supply chain.
- Efforts to ease congestion at ports can influence global trade flows and have ripple effects on international commerce.
- The temporary allowance for foreign-built and foreign-crewed vessels to engage in domestic shipping will impact foreign shipping companies.
Reasoning
- The SHIP IT Act impacts key segments of the logistics and shipping industries which are critical to the U.S. economy, thereby affecting several target groups, including truck drivers, shipping companies, and logistics firms.
- The waiver of hours of service limits and age requirements could increase workforce availability and flexibility but may raise safety and labor concerns.
- The use of foreign vessels might reduce costs for some operations but could impact domestic maritime employment and industry dynamics.
- Given a limited budget, benefits in infrastructural changes and resulting impacts must be carefully allocated to target areas of significant congestion while considering long-term industry adjustments.
- The policy will indirectly affect consumers by possibly reducing delays and costs in goods delivery, enhancing overall market competitiveness.
Simulated Interviews
Truck Driver (Los Angeles, CA)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 15/20
Statement of Opinion:
- I think the SHIP IT Act could help reduce delays at the ports, which is great for us drivers and our schedules.
- While working longer hours is allowed, it could be exhausting without proper compensation. We might see benefits if the operations are managed well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 4 | 3 |
Port Operations Manager (Houston, TX)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- Reducing port congestion is crucial for smoother operations.
- Foreign vessels could aid temporarily, but this might affect local businesses in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 4 |
| Year 5 | 8 | 3 |
| Year 10 | 8 | 2 |
| Year 20 | 7 | 2 |
Logistics Company Owner (Memphis, TN)
Age: 38 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 12/20
Statement of Opinion:
- The Act could lower shipping costs and improve timelines, which is favorable.
- Temporary foreign competition is concerning - long term, we hope local logistics aren't sidelined.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 5 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 4 | 2 |
Commercial Maritime Lawyer (Seattle, WA)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 8/20
Statement of Opinion:
- The waiver on foreign vessels poses potential legal challenges and might cause disputes.
- It could lead to lower costs for some clients but also potential harm to American maritime businesses.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 5 | 4 |
| Year 20 | 5 | 3 |
Owner of a Small Marine Repair Company (New York, NY)
Age: 54 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- The policy could lead to reduced demand for U.S.-built and serviced ships.
- If foreign-built ships are used more, our business might see decreased revenue.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 4 | 3 |
| Year 20 | 4 | 3 |
Union Representative for Port Workers (Savannah, GA)
Age: 34 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 9/20
Statement of Opinion:
- Lifting restrictions on hours could endanger worker wellbeing and safety.
- Though jobs may increase initially, foreign competition might hurt domestic worker rights.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 5 |
| Year 2 | 4 | 4 |
| Year 3 | 5 | 3 |
| Year 5 | 5 | 3 |
| Year 10 | 4 | 3 |
| Year 20 | 4 | 2 |
Owner of a Shipping Company (Miami, FL)
Age: 43 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- Allowing foreign vessels could reduce costs significantly for my company.
- However, it might compromise the long-standing Jones Act protections for us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Maritime and Supply Chain Analyst (San Diego, CA)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 2.0 years
Commonness: 5/20
Statement of Opinion:
- The ability to use foreign vessels briefly could alleviate immediate congestion woes.
- Research must continue to address systemic inefficiencies long-term.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 6 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Port Facility Owner (Oakland, CA)
Age: 51 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 8.0 years
Commonness: 7/20
Statement of Opinion:
- Less congestion means potentially more business as more goods can be moved efficiently through my facilities.
- Concerns remain about the strategic reliance on foreign operations.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 5 |
| Year 3 | 7 | 4 |
| Year 5 | 8 | 4 |
| Year 10 | 7 | 3 |
| Year 20 | 6 | 3 |
Consumer Electronics Retailer (Newark, NJ)
Age: 36 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 14/20
Statement of Opinion:
- Easing congestion could help get products faster and potentially reduce costs due to less shipping delays.
- Concerned about potential short-term nature of these benefits with foreign ship involvement.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 4 |
| Year 5 | 6 | 3 |
| Year 10 | 5 | 3 |
| Year 20 | 5 | 3 |
Cost Estimates
Year 1: $75000000 (Low: $50000000, High: $100000000)
Year 2: $0 (Low: $0, High: $0)
Year 3: $0 (Low: $0, High: $0)
Year 5: $0 (Low: $0, High: $0)
Year 10: $0 (Low: $0, High: $0)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- The policy is temporary, limiting the long-term financial impacts.
- Potential opposition from domestic shipping and trucking sectors concerned with increased competition and regulatory waivers.
- Impact on safety standards due to waived hours of service and age requirements.
- Need for efficient coordination between various federal agencies to implement changes smoothly.