If you’re reading this article, you’re likely researching United States charter regulations. You may even be the owner, manager or captain of a foreign-built vessel and have recently learned the MARAD waiver is your ticket to charter eligibility with the United States Coast Guard.
After reading this brief article, you’ll know what a MARAD waiver is, who needs it, why you need it, and how to get one.
WHO/WHAT IS ‘MARAD’?
The MAR ine AD ministration Division of the United States Department of Transportation.
WHAT IS THE JONES ACT?
The Jones Act (46 U.S.C. § 55102) requires that vessels operating in coastwise commerce be built in the U.S. whenever possible. In this context, “coastwise commerce” relates to the domestic movement of goods between US cities.
WHAT IS A SMALL VESSEL WAIVER?
Since the Jones Act is intended to prohibit foreign cargo ships from controlling domestic transport, there are exceptions to allow certain small passenger vessels to operate for-profit. These exceptions are broadly known as the Small Vessel Waiver Program.
WHAT IS A MARAD WAIVER?
Vessels eligible for the Small Vessel Waiver Program receive a MARAD Waiver, allowing them to operate for-profit in a specific United States region with up to 12 passengers on board.
Simply put, if you’re planning to legally charter a foreign-built vessel in the United States using anything other than a Bareboat format, you’ll need a MARAD waiver to do it.
Fun Fact: The USDT estimates it grants 150 MARAD waivers annually.
You’ll need a MARAD waiver if:
1.) You want to charter your boat to a paying passenger, and
2.) Your boat was foreign-built OR its build location is unknown, and
3.) You don’t want to use a bareboat charter format
*For more information on bareboat chartering and what it means for you and your customer, read our article on the Troubles of Bareboat Chartering .
