Gov. Bryan Supports U.S. Ship Registry in USVI

St. Croix Times Staff

A proposal that is being bandied about in Washington’s inner sanctums to create a new international U.S. ship registry domiciled in the U.S. Virgin Islands could align with President Trump’s efforts to strengthen the country’s maritime industry.

“The initiative makes sense and is in alignment with the Trump Administration’s initiative to strengthen American shipping,” Governor Albert Bryan Jr. was recently quoted in emailed comments to Reuters.

Apparently, sources close to the Trump Administration believe they are considering such a proposal as part of their efforts to enlarge the tiny commercial shipping fleet flying American flags.

Using the USVI could be the most efficient way to strengthen American maritime posture,” said Eric Dawicki, President of the Center for Ocean Policy and Economics (COPE), a research body that recently submitted the proposal to U.S. officials. “It could provide a U.S.-controlled flag without the costly restrictions associated with a straight U.S. flag registration.”

Certainly, underlying reasons for such a move involve the current numbers of 187 U.S.-flagged commercial fleet ships versus China’s estimated 5,000 plus ships. That enormous disparity coupled with China’s growing presence in South America, as it creeps into America’s backyard, has National security experts seeing the potential risks of maintaining the status quo.  

Mr. Dawicki’s proposal was initially presented to the USVI two years ago,” commented Governor Bryan. “He offered us a chance to participate in a novel idea and we thought it was worth pursuing.”

Mr. Dawicki and the Governor eventually signed a memorandum of understanding (MOU) on the initiative.

Under the plan, ships registered in the USVI would still operate under U.S. jurisdiction but would be exempt from the Jones Act (specifically the cabotage provisions of the Merchant Marine Act of 1920) which restricts shipping  - water transportation of cargo - between U.S. ports to American-built, owned, and-crewed vessels. The Act maintains: 1) The vessel must be owned by a U.S. based company, with at least 75% ownership held by U.S. citizens. 2) 75% of the crew must be U.S. citizens or permanent residents 3) The ship must be built in the United States.

The Jones Act was intended to bolster the U.S. maritime industry, support shipbuilding, and ensure national security by having a domestic fleet capable of handling cargo between U.S. ports. But critics argue that the Jones Act raises shipping costs for goods transported between U.S. ports, especially for islands like the USVI, Puerto Rico and Hawaii. The Jones Act is estimated to support 650,000 jobs and generate $150 billion annually.    

This means foreign ships and crews are generally prohibited from participating in domestic water routes. The Jones Act was enacted to protect the U.S. shipbuilding and maritime industries at a time when the U.S was emerging from the horrors of the First World War.

The plan has sparked severe criticism from labor unions and domestic shipbuilding advocates who believe it is a threat to American workers.  

“It would allow shipping companies to do an end-around of U.S. regulations and tax and crew requirements,” a source who wished to remain anonymous told the St. Croix Times. 

Yet, if put into play, the proposed ship registry could transform the USVI into a global maritime powerhouse, attracting foreign vessels from all over the world and setting the stage for a new era of economic prosperity in the USVI,

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Mr. Dawicki has been working hard to get the initiative on the Washington radar and it seems he has finally succeeded,” the USVI Governor remarked.