North American Maritime Reform US-Canada Maritime Reform Proposal

  


North American Maritime Reform
US-Canada Maritime Reform Proposal
Reciprocal Cabotage Modernization for Stronger Continental Trade

Draft – April 2026
Curtis Neil

Executive Summary

Current U.S. Jones Act and Canadian Coasting Trade Act rules drive domestic shipping costs 2–4 times higher than international benchmarks. These elevated costs add hundreds of millions annually to supply chain expenses and disproportionately hurt consumers in remote regions.

The Great Lakes–St. Lawrence Seaway system moves approximately 37 million metric tons of cargo annually through the Seaway waterway (with the broader regional system supporting significantly higher volumes), generating substantial economic value and supporting hundreds of thousands of jobs across both nations — yet foreign (often Chinese-linked) carriers continue to gain share in continental trades.

This proposal modernizes both cabotage regimes through reciprocal access for qualified U.S.- and Canadian-flagged vessels. It fully preserves national sovereignty, flags, and security controls while expanding the economic pie: more routes per vessel, higher utilization rates, new ship construction, and better-paying North American maritime jobs.

Key Outcomes:

  • Lower shipping costs for goods, energy, and consumers.

  • New shipyard and crew jobs on both sides of the border.

  • Reduced reliance on adversarial foreign shipping.

  • Stronger, more resilient North American supply chains.

Five Pillars (detailed below) include reciprocal access with right-of-first-refusal protections, aligned crewing, a joint investment fund seeded by non-NA imports, common standards, and a phased metric transition.

This is a win-win for workers, shippers, and national security — offered in partnership with any Canadian government ready to strengthen continental resilience.

The Challenge

Historical Context: The Dramatic Decline of North American Maritime Power

Seventy-five years ago, North America dominated global shipping. In the immediate postwar period (1945–1950), the United States operated approximately 60% of the world’s merchant tonnage. U.S.-flagged vessels carried roughly 50% of global seaborne trade in the early 1950s, with the U.S. merchant fleet including ~1,288 vessels in international trade.

Canada also fielded one of the world’s largest merchant fleets during and immediately after World War II (fourth-largest by some measures), playing a critical role in global supply lines.

World seaborne trade volume at that time was roughly 800 million tons annually.

Today the picture is starkly different:

  • World seaborne trade has grown more than 15-fold to over 12 billion tons per year.

  • U.S.-flagged ships now carry less than 1–2% of U.S. international trade (and a negligible share of global cargo).

  • The number of U.S.-flagged vessels in international trade has collapsed to roughly 80.

  • Canada’s deep-sea merchant marine has virtually disappeared from international routes.

Outside their protected domestic cabotage waters, the United States and Canada have lost almost all meaningful presence in the global maritime trades that now move the overwhelming majority of continental and world commerce.

This proposal directly addresses that historic erosion by expanding the viable market for North American vessels and crews — without weakening national protections.

National Security Implications of Lost Deep-Sea Capability

The erosion of North American deep-sea maritime capacity creates a substantial and growing security vulnerability. In April 2026, the United States was forced to issue — and then extend — a Jones Act waiver to allow foreign-flagged vessels to transport fuel and energy products between U.S. ports. This temporary suspension was necessary both to maintain domestic fuel supplies amid global disruptions and to support broader defense of world energy routes during the ongoing Middle East conflict.

Such repeated reliance on foreign shipping for even basic continental needs underscores the risk: when international crises arise, North America lacks the resilient, sovereign-controlled fleet required for reliable supply lines, military sealift, or rapid response. Rebuilding a stronger U.S.-Canadian merchant marine through reciprocal modernization is not merely an economic measure — it is a strategic imperative for continental and allied energy security.

  • High domestic costs: Jones Act-compliant shipping often costs 2–4 times international equivalents, inflating prices for energy, commodities, and consumer goods — especially in Alaska, Hawaii, Puerto Rico, and remote Canadian regions.

  • Aging fleets and fragmentation: Limited modern tonnage and mismatched standards between the U.S. and Canada.

  • Foreign dependence: Growing reliance on non-North American (particularly Chinese state-linked) carriers for continental trade.

Rationale & Economic Drivers

Both nations already protect domestic cabotage. This proposal enhances that protection through reciprocity: qualified U.S. vessels can operate in Canadian waters (and vice versa) on a larger continental market. Higher vessel utilization drives investment in new builds, creates more mariner jobs, and gradually shifts international cargo onto North American hulls and crews.

Comparable Success: EU cabotage liberalization boosted short-sea shipping efficiency, reduced empty runs, cut costs, and strengthened intra-European trade competitiveness.

The Solution – Five Pillars

  1. Reciprocal Domestic Access Qualified vessels (U.S.- or Canadian-flagged, built or substantially retrofitted in North America, crewed primarily by North American mariners, and compliant with national cabotage laws) gain access to each other’s coastal, inland, Great Lakes, and St. Lawrence routes. Safeguard: Local operators retain “right of first refusal” on existing routes for 3–5 years to protect current jobs and services.

  2. Reciprocal Crewing with Aligned Standards U.S. and Canadian crews serve interchangeably on reciprocal routes, backed by harmonized licensing, training, safety, and wage floors. This expands opportunities and builds a flexible, high-skill North American maritime workforce.

  3. Joint North American Maritime Investment Fund Seeded by a modest 0.5–1% levy on imports from outside the North American zone (foreign carriers effectively fund our renewal). Proceeds support shipyard modernization, workforce training, and fleet renewal. Qualifying North American vessels receive exemptions/rebates. Governance: Bi-national board (equal U.S./Canada representatives) + industry, labor, and government seats. Includes a 10-year review/sunset clause.

  4. Joint North American Certificate of Standards Common safety, environmental, and operational standards for reciprocal trade. Only certified vessels/crews qualify. Explicit exclusion of vessels/operators with adversarial state ties (e.g., Chinese state-owned enterprises like COSCO).

  5. Metric Transition for Trade and Maritime Operations The U.S. adopts the metric system for trade, labeling, and key maritime rules over a structured 5-year phase-in, with full switch by January 1, 2031. This improves Seaway interoperability and reduces conversion errors/costs.

Implementation Roadmap

  • Year 1: Bilateral negotiations, standards harmonization, and security protocols.

  • Year 2: Pilot routes (e.g., select Great Lakes/coastal corridors).

  • Years 3–5: Full reciprocity rollout, fund activation, and metric transition.

  • Ongoing: Annual joint reviews and adjustments.

Security and Sovereignty Safeguards

  • Full CFIUS-style vetting for all participants.

  • National flags remain primary; no supranational authority created.

  • Preservation of national security waivers and full Arctic sovereignty.

  • Explicit bar on adversarial-linked vessels.

Addressing Potential Objections

  • Unions/Maritime Industry: “Weakens Jones Act/Coasting Trade protections.” Counter: This strengthens the domestic fleet long-term by increasing vessel utilization, attracting investment, and growing North American tonnage/jobs — without opening the door to global foreign competition.

  • Nationalists: “Loss of sovereignty.” Counter: Full preservation of flags, vetting, and controls. Reciprocity builds shared strength against external rivals.

Key Benefits

  • Cost savings: Significantly lower shipping costs for goods/energy (potentially hundreds of millions annually).

  • Job creation: New shipyard modernization + expanded crewing opportunities.

  • Resilience: Gradual increase in North American share of continental and overseas trade.

  • Economic multiplier: Higher value per vessel and mariner through expanded markets.

Canada Note

Canada is a natural and equal partner. Participation would deliver major gains for Canadian ports, workers, shippers, and consumers. This framework is offered in a spirit of mutual economic strength and continental security — fully available to any Canadian government prepared to advance it.

References & Sources (Appendix)

(April 2026 Draft)

Domestic Shipping Costs
→ https://econofact.org/the-jones-act-and-the-cost-of-shipping-between-u-s-ports-updated
→ https://www.cato.org/commentary/jones-act-costly-ineffective-unfair
→ https://cei.org/blog/the-jones-act-high-seas-higher-costs-than-necessary/

Great Lakes–St. Lawrence Seaway
→ https://greatlakes-seaway.com/wp-content/uploads/2025/07/slsmc_ar2025_en.pdf
→ https://www.seaway.dot.gov/publications/economic-impact-study

Historical Decline
→ https://transportationinstitute.org/know-our-industry/maritime-history/
→ https://unctad.org/publication/review-maritime-transport-2024
→ https://en.wikipedia.org/wiki/Canadian_Merchant_Navy

National Security & Jones Act Waiver (April 2026)
→ https://www.reuters.com/business/autos-transportation/trump-grants-90-day-jones-act-waiver-extension-curb-energy-costs-2026-04-24/
→ https://www.nytimes.com/2026/04/24/world/middleeast/trump-extends-waiver-allowing-foreign-ships-to-move-goods-between-us-ports.html

EU Cabotage & Other
→ https://www.itf-oecd.org/sites/default/files/docs/01shortsea.pdf
→ https://www.transportation.gov/

Note: All figures use conservative, cross-verified ranges. Full PDFs and additional datasets are available via the links above.

 

 

Curtis Anthony Neil/Grok 4.0/ LibreOffice. April  26th. 2026 AD.

Bakersfield, California, USA, North America, Planet Earth (Terra), the third planet from the Sun (Sol), Solar System, Orion Arm, Milky Way Galaxy

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