Congress Reaches Agreement On Key Maritime Legislation

On December 3, 2020, the House and Senate Armed Services committees released the conference report agreement for the Mac Thornberry National Defense Authorization Act for Fiscal Year 2021.

The Act establishes a new ten-vessel Tanker Security Fleet modeled upon the successful Maritime Security Program. Under the new program, owners of eligible product tankers may apply for a $6 million per year stipend in exchange for making the vessels available to the U.S. Government in times of war or national emergency. Another provision temporarily increases the stipend for Maritime Security Program participants by $3 million per vessel to address COVID-related pressures.

The bill also strengthens certain Ship American or "cargo preference" requirements appliable to the movement of military cargoes and calls for a new study regarding Federal shipper agencies' compliance with existing civilian and military cargo preference rules. Additionally, the measure strengthens