The Maritime Administration (MARAD), part of the U.S. Department of Transportation, published a notice in the Federal Register on December 12, 2025, seeking public comments on a request to allow the foreign-built vessel M/V DONNA RENEE to operate in U.S. coastwise trade. This involves carrying no more than 12 passengers for hire, a determination governed by federal law that requires assessing impacts on domestic vessel builders and operators. The notice, docketed as MARAD-2025-0929, invites input to determine if the proposed use would adversely affect U.S. interests, with a comment deadline of January 12, 2026. This development highlights ongoing tensions in maritime regulations between facilitating small vessel operations and protecting American shipbuilding and trade sectors.
Background on Coastwise Trade Regulations
U.S. coastwise trade laws, often referred to as the Jones Act, generally require vessels operating between domestic points to be built in the United States, owned by U.S. citizens, and crewed by Americans. These rules stem from the Merchant Marine Act of 1920, aimed at supporting national security, economic interests, and the domestic maritime industry. However, exceptions exist for small passenger vessels under 46 U.S.C. 12121(b). This provision allows the U.S. Coast Guard to issue a coastwise endorsement for eligible vessels carrying up to 12 passengers if MARAD determines no adverse effects on U.S. builders or businesses using U.S.-built vessels.
The process involves MARAD reviewing requests and publishing notices for public comment, as seen in this case. Similar determinations have occurred in the past, such as waivers for vessels in tourism or charter services in regions like Hawaii or Alaska, where foreign-built options can fill niche demands. For instance, a 2019 MARAD notice for a foreign-built catamaran in Hawaiian waters drew comments from U.S. builders citing potential market dilution, though the agency ultimately approved it after finding minimal impact.
Details of the M/V DONNA RENEE Request
The notice specifies that MARAD received a determination request for the M/V DONNA RENEE, a foreign-built small passenger vessel. While the Federal Register entry does not detail the vessel's specifications or the requester's identity here, it directs interested parties to the full request in the docket at regulations.gov under MARAD-2025-0929. The proposed service involves coastwise operations solely for carrying no more than 12 passengers for hire, which could include charters, tours, or similar activities.
MARAD's role is to evaluate whether this would harm U.S. vessel builders or coastwise trade businesses. The notice states, 'MARAD has received an eligibility determination request,' and emphasizes that comments should 'demonstrate, with supporting documentation, the undue adverse effect on U.S. vessel builders and coastwise trade businesses.' This aligns with the statutory requirement under 46 U.S.C. 12121(b), where authority is shared between MARAD and the Coast Guard through their respective departments.
Key players include the unnamed requester, likely a vessel owner or operator seeking market entry, and potential commenters such as U.S. shipyards like Bollinger Shipyards or trade groups like the American Maritime Partnership. These entities often argue that foreign vessels undercut domestic investments in shipbuilding.
Legal and Political Context
This request operates within a framework shaped by longstanding maritime policy debates. The Jones Act has faced criticism for increasing costs in domestic shipping, with supporters highlighting its role in maintaining a skilled workforce and industrial base for defense needs. Legal precedents, such as the 2003 case American Maritime Officers v. U.S. Department of Transportation, affirmed agency discretion in waiver processes, emphasizing evidence-based determinations.
Politically, the Biden administration has emphasized Buy American policies, but small vessel waivers persist to support tourism and regional economies. Perspectives vary: industry advocates like the Shipbuilders Council of America may view this as a threat to jobs, while operators in underserved areas argue it enhances service availability without displacing U.S.-built vessels. Environmental groups sometimes weigh in, noting foreign vessels might not meet U.S. emission standards, though this notice focuses solely on economic impacts.
Potential Implications
In the short term, approval could enable the M/V DONNA RENEE to enter service quickly, potentially boosting local economies through increased passenger options. However, denial might reinforce protections for U.S. builders, encouraging domestic construction. Long-term, frequent waivers could erode Jones Act enforcement, prompting calls for legislative reforms. For example, a 2021 Government Accountability Office report found that small vessel waivers have grown, with over 50 issued between 2015 and 2020, raising concerns about cumulative effects on the industry.
Different viewpoints include those from free-trade proponents, who see waivers as promoting competition, versus protectionists emphasizing national security. Without endorsing any, these perspectives underscore the balance between economic flexibility and industrial preservation.
Forward-Looking Considerations
This notice represents a routine yet significant step in maritime regulation, with public comments likely to shape MARAD's final determination. Future challenges may involve evolving trade policies or court challenges to waiver decisions. Ongoing debates could lead to broader reviews of small vessel exemptions, influencing how agencies balance domestic protections with operational needs.
