MARAD Seeks Comments on Foreign-Built Vessel M/V TUNA DE LUNA for U.S. Coastwise Passenger Service

The Maritime Administration (MARAD), part of the U.S. Department of Transportation, published a notice in the Federal Register on December 22, 2025, seeking public comments on a request to use the foreign-built small passenger vessel M/V TUNA DE LUNA in U.S. coastwise trade. This action stems from a determination request under 46 U.S.C. 12121(b), which allows MARAD to assess whether such use would harm U.S. vessel builders or businesses relying on American-built vessels. The vessel is proposed for carrying no more than 12 passengers for hire. Comments must be submitted by January 21, 2026, via the specified docket, to help evaluate potential adverse effects. This notice highlights ongoing efforts to balance maritime regulations with operational needs in the small vessel sector, potentially influencing domestic competition and industry standards.

Background on Coastwise Trade Regulations

U.S. coastwise trade laws, often referred to as the Jones Act, generally restrict domestic maritime transport to vessels built in the United States, owned by U.S. citizens, and crewed by Americans. These rules aim to protect national security, support domestic shipbuilding, and ensure economic benefits remain within the country. However, exceptions exist for small passenger vessels under 46 U.S.C. 12121(b). This provision permits the U.S. Coast Guard to issue a coastwise endorsement for eligible vessels if MARAD determines no adverse impact on U.S. builders or trade operations using domestic vessels.

The authority for this process is shared between MARAD and the Coast Guard, as delegated by the secretaries of Transportation and Homeland Security. In this case, MARAD has received a request for the M/V TUNA DE LUNA, a foreign-built vessel, and is now gathering input to inform its decision. The notice specifies that the vessel would carry no more than 12 passengers, fitting the small vessel category that qualifies for such reviews.

Details of the Request and Vessel

The Federal Register notice provides limited specifics on the M/V TUNA DE LUNA, directing interested parties to the full request in Docket No. MARAD-2025-1063 on regulations.gov. It describes the proposed service as coastwise trade involving passenger transport for hire. MARAD's role is to determine if this would unduly harm U.S. vessel builders or businesses employing American-built vessels in similar operations.

Commenters are encouraged to include supporting documentation demonstrating any adverse effects. For instance, domestic operators might argue that approving the request could undercut their market share by introducing lower-cost foreign competition. The notice emphasizes that submissions should state the commenter's interest and provide evidence, such as data on market impacts or builder capacities.

Key Players and Legal Framework

MARAD acts as the lead agency here, with Patricia Hagerty listed as the contact for further information. The process aligns with broader maritime policy overseen by the Department of Transportation. Legally, this draws from the Passenger Vessel Services Act and related statutes, which echo the cabotage principles in the Jones Act (46 U.S.C. 55102).

Precedents include prior MARAD determinations for small vessels, such as waivers granted for vessels in niche markets like eco-tours or charters where domestic options were scarce. For example, similar notices have been issued for vessels in Alaska or Hawaii, where geographic factors limit domestic alternatives. However, approvals are not automatic. In cases like the 2019 review of a foreign yacht for charter service, MARAD denied the request after comments highlighted available U.S.-built vessels, citing protection of domestic industries.

Political forces include advocacy from shipbuilding groups like the Shipbuilders Council of America, which often oppose waivers to preserve jobs and investment in U.S. yards. On the other side, vessel operators and tourism interests may support flexibility to meet demand, arguing that strict enforcement stifles innovation and economic growth in coastal communities.

Potential Implications

Short-term effects could include shifts in local passenger transport markets if the waiver is approved. Domestic builders might face reduced orders if foreign vessels gain entry, potentially affecting employment in shipyards. Long-term, repeated approvals could erode the Jones Act's protections, prompting calls for legislative reforms. Conversely, denial might reinforce domestic priorities but limit options for operators facing vessel shortages.

Different perspectives emerge from stakeholders. Industry groups representing U.S. builders, such as the American Maritime Partnership, typically view these requests as threats to economic sovereignty. In contrast, applicants and some economists argue that waivers enhance competition and consumer choice without significant harm, especially in underserved segments. Environmental advocates might weigh in if the vessel's operations involve sensitive areas, though the notice focuses solely on economic impacts.

The comment period allows for balanced input, ensuring decisions reflect diverse viewpoints without favoring any side.

In summary, this MARAD notice opens a window for public engagement on the M/V TUNA DE LUNA's potential role in U.S. waters. Key takeaways include the emphasis on evidence-based comments and the broader context of maritime protectionism. Looking ahead, the determination could set precedents for future requests, with possible appeals or further reviews if adverse effects are substantiated. Ongoing debates may center on modernizing small vessel regulations amid evolving industry needs, potentially leading to policy adjustments or increased scrutiny of waiver processes. Challenges include gathering comprehensive data on market impacts, while next steps involve MARAD's analysis of submissions post-January 21, 2026, followed by a final decision.