The Maritime Administration (MARAD), part of the U.S. Department of Transportation, has published a notice in the Federal Register soliciting public comments on a request to permit the foreign-built small passenger vessel M/V MOKUME GANE to operate in U.S. coastwise trade. This action stems from a determination request under 46 U.S.C. 12121(b), which allows the Secretary of Transportation, through MARAD, to evaluate whether such use would harm U.S. vessel builders or businesses relying on U.S.-built vessels. The notice, dated March 18, 2026, invites input by April 17, 2026, to ensure a thorough assessment before any coastwise endorsement is issued by the U.S. Coast Guard. This development highlights ongoing efforts to balance maritime trade exceptions with protections for domestic industries, potentially affecting small-scale 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 governed by laws like the Jones Act (46 U.S.C. 55102), which mandates the use of U.S.-built, U.S.-owned, and U.S.-crewed vessels. However, 46 U.S.C. 12121 provides a narrow exception for small passenger vessels carrying no more than 12 passengers for hire. Under this statute, foreign-built vessels may qualify for a coastwise endorsement if MARAD determines, after public notice and comment, that the operation will not adversely affect U.S. vessel builders or coastwise trade businesses using U.S.-built vessels.
This framework emerged from amendments to maritime laws aimed at addressing gaps in small vessel operations, where domestic supply might not meet demand. Historical precedents include similar MARAD determinations for vessels like those in past dockets, where approvals were granted only after confirming minimal impact on U.S. industries. For instance, in cases involving recreational charters, MARAD has weighed factors such as market saturation and builder capacity, often citing data from commenters to support decisions.
Details of the Request and Vessel
The request pertains to the M/V MOKUME GANE, a foreign-built vessel intended for small passenger services in U.S. coastwise trade. While the Federal Register notice does not detail the vessel's specifications or the requester's identity, it directs interested parties to the full request in Docket No. MARAD-2026-0400 on regulations.gov. The proposed use is limited to carrying no more than 12 passengers for hire, aligning with the statutory threshold for this exception.
MARAD's notice emphasizes that the determination hinges on public input demonstrating any 'undue adverse effect.' Commenters are instructed to include supporting documentation, such as evidence of competitive harm to U.S.-built vessel operators. The agency references its authority shared with the U.S. Coast Guard, noting that the Coast Guard issues the actual certificate of documentation upon MARAD's approval.
Key Players and Process
MARAD leads the determination process, acting on behalf of the Secretary of Transportation. The U.S. Coast Guard collaborates by handling vessel documentation, as outlined in the notice's footnote: 'The U.S. Coast Guard and MARAD have authority under 46 U.S.C. 12121(b) through the Secretary of the Department of Homeland Security and the Secretary of the Department of Transportation, respectively.' The requester, whose details are in the docket, initiates the process, while potential commenters include U.S. vessel builders, trade associations, and operators in the coastwise passenger sector.
The comment period, from March 18 to April 17, 2026, allows submissions via regulations.gov or mail to the DOT Docket Management Facility. Confidential comments can be emailed separately, with procedures for handling under Freedom of Information Act rules. This public participation is crucial, as MARAD must consider all input before deciding, ensuring transparency and adherence to administrative procedures.
Potential Implications and Perspectives
Allowing the M/V MOKUME GANE to operate could expand options for small passenger services, such as charters or tours, in areas where U.S.-built vessels are scarce. Short-term implications might include increased competition for existing operators, potentially lowering costs for consumers but pressuring domestic businesses. Long-term, repeated approvals could influence the small vessel market, encouraging more foreign-built entries if deemed non-adverse.
From the perspective of U.S. vessel builders, this could represent a threat to demand for new constructions, as foreign options might undercut prices. Trade groups, like the American Maritime Partnership, have historically opposed such waivers, arguing they erode Jones Act protections. Conversely, supporters of the exception, including some tourism operators, view it as essential for filling niche markets without harming broader industries. Official statements in the notice underscore MARAD's neutral stance, focusing on evidence-based evaluation rather than policy advocacy.
No direct legal precedents are cited in the notice, but similar cases under 46 U.S.C. 12121 have resulted in approvals when no adverse effects were substantiated, as seen in prior Federal Register entries for vessels like small yachts or ferries.
Challenges in the Determination Process
The process faces challenges in gathering comprehensive data, as commenters must provide specific evidence of harm. Past determinations have highlighted difficulties in quantifying 'adverse effects,' often relying on economic analyses or market studies. Political forces, including congressional oversight of maritime policy, could influence outcomes, with debates over Jones Act reforms occasionally surfacing in legislative discussions.
In summary, this notice represents a standard application of federal maritime law, designed to protect domestic interests while allowing limited flexibility.
