Coast Guard Clarifies Installation of Foreign-Made LNG Cargo Tanks in Jones Act Vessels

For a vessel to qualify to operate in the U.S. coastwise trade it must be built in the United States which means that all major components of its hull and superstructure must be fabricated in the United States, and the vessel must be assembled entirely in the United States. On September 25, 2012, the U.S. Coast Guard issued a ruling indicating that Liquefied Natural Gas cargo tanks would not constitute part of the vessel’s “hull” because they would be installed such that “primary hull stresses are not transmitted to the tank structure” and therefore could be manufactured outside of the United States without affecting the U.S. built status of the vessel.