US considering new ship registry in US Virgin Islands sources say

WASHINGTON - President Donald Trumps administration is considering a proposal to create an international shipping registry in the US Virgin Islands as part of efforts to enlarge the tiny commercial shipping fleet flying the American flag, according to four sources familiar with the matter.

Increasing the number of US-flagged vessels is important for Trumps administration because it would enhance the ability of the US commercial shipping fleet to provide logistical support for the military in time of war, and ease Washingtons dependence on foreign ships to transport supplies and equipment across sea lanes.

The US-flagged fleet currently numbers around 187 vessels, of which only 80 are involved in international trade. This contrasts with at least 5,500 of vessels under Chinas control, according to industry estimates and assessments from US lawmakers.

The US flag registry has struggled to attract ship owners for decades due to higher costs, a bigger tax burden and multiple requirements such as having a crew of US citizens. China has become the world’s top shipbuilding and shipping nation with 230 times more shipbuilding capacity than the US, a congressional report showed last year.

Using the US Virgin Islands (USVI) could be the most efficient way to strengthen American maritime posture because the island territory could provide a US-controlled flag without the costly restrictions associated with a straight US flag registration, according to Eric Dawicki, president of the Center for Ocean Policy and Economics (COPE) research body, which submitted the proposal to US officials.

All commercial ships must be registered, or flagged, with a particular country or jurisdiction to comply with safety and environmental rules.

A US official said the proposal had been submitted to the National Security Council, adding it was unclear on the status. Another US official confirmed that the National Security Council was aware of