The US government under Donald Trump is examining the establishment of a new international shipping register in the US Virgin Islands. This also involves the Jones Act.
The aim is to increase the number of US-flagged merchant ships, which has been stagnating for decades, and to strengthen America’s maritime independence.
The project is based on a proposal from the Center for Ocean Policy and Economics (COPE), submitted by its President Eric Dawicki. The core of the proposal is a more flexible register that dispenses with the strict requirements of the traditional US flag register. Unlike the Jones Act, USVI-flagged ships would not have to be built in the USA or operated by US crews. The hurdles in terms of tax and administrative law would also be significantly lower. The aim is to create a cost-efficient alternative that is nevertheless under US control.
Strategic leverage or industrial policy risk?
Whether a credible US flag status can actually be established under these conditions remains to be seen. Although the model promises regulatory relief, critics warn of a possible erosion of strategic standards. If ships that are not built in the USA and are not operated by US citizens sail under the American flag in future, the question arises as to how much control can still be exercised in real terms.
There is also the industrial policy dimension. While COPE emphasizes that the USVI register is a complementary measure to increase the international presence of American-controlled ships, trade unions and parts of the maritime industry fear a displacement effect at the expense of traditional US shipbuilding. The number of operational shipyards in the USA has been declining for decades. Many facilities are considered outdated and underfunded. Against this backdrop, critics fear that an international secondary register could shift investments further abroad.
The project is also sensitive in terms of security policy. In conflicts such as the 1991 Gulf War, the USA relied heavily on foreign-flagged ships to transport troops and equipment. The new register is intended to cushion precisely this structural weakness. However, it is by no means certain whether such a model, which is based on foreign shipbuilding and personnel, will actually ensure crisis-proof maritime capacities.
Flexible flag status with political explosive force
At the same time, it is clear that the project is politically embedded. At the end of April, MPs from both parties introduced the SHIPS for America bill in the US Congress. It provides for long-term investment in national shipping. According to Dawicki, the USVI registry could complement this goal without interfering with coastal transportation or the Jones Act. The wording seems deliberately cautious – possibly to avoid resistance from protectionist voices.
The US fleet currently accounts for less than one percent of global shipping traffic. A register on the USVI could be a pragmatic step towards improving this figure in the short term. Whether it will help to strengthen the national maritime infrastructure in the long term or create new dependencies, on the other hand, is an open question – with considerable political weight. (rup)
