Noncontiguous Shipping Competition Act

HR 665, the Noncontiguous Shipping Competition Act, modifies U.S. coastwise shipping laws to allow certain noncontiguous trade routes (like Hawaii to California) to operate without the usual requirement that only U.S.-built, U.S.-owned vessels serve those routes. It exempts such shipping unless at least three separate vessel operators (not under common ownership) each transport at least 20% of the goods on the route. This directly affects shipping companies operating on noncontiguous routes and the existing coastwise-qualified vessel operators who must meet these specific volume and ownership conditions to maintain their exclusive right. The bill creates a clearer pathway for new competition on these routes by establishing objective criteria for when the coastwise law applies.