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.
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?
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.
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.
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