Defense Authorization Act Makes Maritime Changes

The National Defense Authorization Act for Fiscal Year 2011, passed by Congress immediately before the holidays, contains a number of provisions applicable to maritime companies engaged in work for the U.S. Department of Defense. In particular, the Defense Authorization Act extends the expiration date of the U.S. Maritime Security Program, which supports 60 U.S.-flag vessels in the foreign trade, from 2015 to 2025. Other provisions potentially affecting maritime companies include enhanced regulation of the use of private security personnel, the potential payment by the U.S. Government of claims for damages to household goods incurred by an ocean carrier, and a possible requirement to increase facility security clearance requirements for U.S.-owned companies similar to those required of foreign-owned companies. President Obama is expected to sign the measure into law in the next ten days.