The American Cargo for American ship act. 100% of cargo by the DOT must be shipped on American Ships. Much like the Jones act this increases the amount of cargo . I understand we need to have a mercantile navy but this also increases costs across the board and is one reason things will get more expensive. A 100% seems excessive. But this should create a buying opportunity in the cargo industry? I think @HohumYNWA would have a better understanding of who and what would benefit from this bill.
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Hmm! At first glance, one would think DOT might order a lot of “stuff”. But, I thought about it a little more, and came to the conclusion, probably, not as much as it sounds. I mean, Dept of Transportation (DOT) is a regulatory agency, and is involved in a lot of areas - aviation, shipping, railways, highways, pipelines, etc. But, is DOT ordering lots and lots of bulky items that are shipped for those industries? Not sure. DOT does have an ~$150B budget (FY 2025). Yes, probably some specialized stuff here and there.
Are there some companies who could benefit?
There used to be a publicly traded company based out of Louisiana. They used to have vessels that supported the US Military, Don’t know what happened to them. Saltchuk Resources is a private marine and logistics company. But, if it is bulky and/or really heavy individual items, one really needs heavy-lift vessels, Is there a US Carrier that owns heavy-lift vessels?
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Here’s a Heavy-Lift shipping operator based out of Singapore - AAL.
In the image slides are various cargo types transported by their vessels, including some cargos to the US.
The Heavy-Lift shipping name I am familiar with is Dockwise (now branded as Boskalis), a Netherlands-based company.
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Thanks Hohum. It will be interesting how this will play out. Maybe foreign countries will domicile in the United States?
@buynholdisdead - First, the bill has to clear the Senate, right?
BTW, I just recalled another tidbit about heavy-lift shipping. Oaktree Capital once backed a heavy-lift shipping company with US ties, the entity was Hansa Heavy Lift.
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You are correct. They could change it or shoot it down.
Looks like they went bankrupt.
IIRC, the heavy-lift foray was at a time Oaktree was quite active in shipping - in particular, Torm, Star Bulk, Eagle Bulk, etc. Those three worked out quite well
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