The Maritime Administration (MARAD), part of the U.S. Department of Transportation, published a notice in the Federal Register on January 8, 2026, seeking public comments on a request to allow the foreign-built small passenger vessel M/V VADA to engage in U.S. coastwise trade. This action stems from a determination request under federal law, which authorizes MARAD to assess whether such use would harm U.S. vessel builders or domestic coastwise trade businesses. The notice, docketed as MARAD-2025-1059, invites input by February 9, 2026, to evaluate potential adverse effects. This development highlights ongoing tensions between maritime trade protections and operational flexibility for small vessels, potentially affecting niche passenger services along U.S. coasts.
Background on Coastwise Trade Regulations
Coastwise trade refers to the transportation of passengers or goods between points in the United States, typically reserved for U.S.-built, owned, and operated vessels under the Jones Act and related statutes. Specifically, 46 U.S.C. 12121(b) provides a narrow exception for small passenger vessels carrying no more than 12 passengers for hire. Under this provision, the U.S. Coast Guard can issue a coastwise endorsement if MARAD determines, after public notice and comment, that the vessel's use will not adversely affect U.S. vessel builders or businesses using U.S.-built vessels.
This framework traces back to longstanding U.S. maritime policy aimed at supporting domestic shipbuilding and employment. The Jones Act, formally the Merchant Marine Act of 1920, has been a cornerstone of these protections, with amendments over time to address small vessel operations. For instance, similar waivers have been granted in cases where no suitable U.S.-built alternatives exist, as seen in prior MARAD determinations for vessels in tourism or charter services. The authority is shared between MARAD, under the Department of Transportation, and the Coast Guard, under the Department of Homeland Security, ensuring a balanced review process.
Details of the M/V VADA Request
The notice details a request for MARAD to determine eligibility for the M/V VADA, a foreign-built vessel intended for coastwise passenger service limited to 12 passengers. While the Federal Register entry does not specify the vessel's exact characteristics or the requester's identity, it directs interested parties to the full request in the docket at regulations.gov under MARAD-2025-1059. The proposed service involves carrying passengers for hire in U.S. waters, which would otherwise be prohibited without a waiver.
MARAD's role is to solicit comments on whether this would cause 'undue adverse effect' on U.S. vessel builders or coastwise trade operators. As stated in the notice, 'Interested parties may comment on the undue adverse effect this action may have on U.S. vessel builders or coastwise trade businesses in the U.S. that employ U.S.-built vessels in those businesses.' Comments must include supporting documentation to demonstrate any harm, such as evidence of lost business or competitive disadvantages. This public input is crucial, as MARAD's determination directly influences the Coast Guard's decision to issue a certificate of documentation with coastwise endorsement.
Key Players and Process
MARAD, led by the Maritime Administrator, is the primary agency handling this request, with T. Mitchell Hudson, Jr., signing the notice as Secretary. Contact for further information is Patricia Hagerty at MARAD, reachable at (202) 366-5400 or via email. The process aligns with 49 CFR 1.93(a), delegating authority from the Secretary of Transportation.
Public participation is emphasized, with comments accepted through the Federal eRulemaking Portal or by mail to the Docket Management Facility in Washington, DC. The notice encourages concise, English-language submissions with attachments as needed, and allows for confidential comments under specific procedures to protect commercial information. This mirrors broader federal transparency efforts, such as those under the Administrative Procedure Act, ensuring stakeholder voices shape outcomes.
From a procedural standpoint, this is not the first such notice. Historical precedents include waivers for vessels in Alaska's tourism sector or Hawaii's inter-island services, where foreign-built options filled gaps without significantly impacting domestic industries. However, opposition often arises from U.S. shipyards or operators citing job losses or unfair competition.
Potential Implications and Perspectives
Allowing the M/V VADA into coastwise trade could enhance options for small-scale passenger services, such as charters or eco-tours, potentially boosting local economies in coastal areas. Short-term effects might include increased vessel availability in underserved markets, while long-term implications could involve setting precedents for future waivers, possibly encouraging more foreign-built entries if domestic capacity lags.
Different perspectives emerge in these debates. Domestic vessel builders and operators, represented by groups like the American Maritime Partnership, often argue that waivers undermine the Jones Act's intent to protect U.S. jobs and security. For example, in past cases, they have submitted data showing available U.S.-built vessels that could serve the same purpose. Conversely, requesters and supporters highlight practical needs, such as cost efficiencies or specialized designs not readily available domestically, without intending to displace U.S. businesses.
Politically, these determinations occur amid broader discussions on maritime policy reform. Critics of strict Jones Act enforcement point to higher costs for U.S. consumers, while proponents emphasize national security benefits from a robust domestic fleet. No specific court cases directly challenge this waiver process, but related litigation, such as in Customs and Border Protection rulings on vessel rebuilds, underscores the importance of clear adverse effect demonstrations.
In summary, this notice represents a routine yet significant step in balancing maritime protections with operational needs. Key takeaways include the February 9, 2026, comment deadline and the requirement for evidence-based input. Moving forward, MARAD will review submissions to inform its determination, potentially leading to the vessel's approval or denial. Ongoing debates may focus on refining waiver criteria to adapt to evolving industry demands, while challenges could arise from economic shifts or legal challenges to the process. Stakeholders should monitor the docket for updates, as the outcome could influence similar requests and broader policy discussions.
