By Elena Vasquez

The U.S. Coast Guard on October 15 directed an immediate review of eleven COSCO vessels enrolled in its Qualship 21 program, one day after three senior House Republicans demanded their removal. Named vessels include the COSCO DEVELOPMENT, COSCO PRIDE and COSCO VIETNAM.

In an October 14 letter to Department of Homeland Security Secretary Markwayne Mullin, House Select Committee on China Chairman John Moolenaar, House Intelligence Committee Chairman Rick Crawford and Rep. Carlos Gimenez cited a September 1 Reuters investigation into alleged intelligence-gathering operations.

What is Qualship 21?

Qualship 21 rewards foreign-flagged vessels with strong safety records by allowing fewer routine port state control inspections at U.S. ports. According to the lawmakers, at least ten COSCO vessels held Qualship 21 enrollment as of July 15, despite the company's designation by the Pentagon as a Chinese military company under Section 1260H.

A Coast Guard table accompanying the letter lists eleven vessels enrolled in the program. The lawmakers want DHS to revoke enrollment, refuse renewals, and increase scrutiny of other companies suspected of conducting activities on behalf of China's People's Liberation Army.

What did the Reuters investigation allege?

Two senior Trump administration officials told Reuters that COSCO uses concealed equipment aboard its commercial ships to intercept military communications near U.S. coastlines. The officials described the operations as part of a decades-long COSCO-Beijing relationship, allowing China to collect signals from ships and aircraft across Europe, North America and Asia.

COSCO rejected the allegations in a September response, stating its onboard equipment serves legitimate commercial purposes including navigation, communications and emergency response. China's embassy in Washington also disputed the claims.

What did the lawmakers ask the Coast Guard?

The letter demands answers on whether Coast Guard Intelligence received warnings about COSCO from the Pentagon, intelligence agencies or other federal authorities before the September 1 report. Lawmakers want to know whether officials considered that information when determining vessel eligibility.

They also asked whether the Coast Guard has conducted additional boardings of COSCO ships, whether it has sufficient authority to investigate suspected surveillance in U.S. waters, and whether analysts have examined historical vessel movements in the U.S. Exclusive Economic Zone.

"State-owned commercial vessels engaging in espionage is an expected breach of trust we regularly anticipate from the Chinese Communist Party," the lawmakers wrote.

What are the commercial consequences for shippers and carriers?

Qualship 21 enrollment does not exempt vessels from security inspections or other Coast Guard enforcement actions. Removal from the program would mean more frequent routine boardings at U.S. ports for COSCO's container fleet, a step that adds dwell time, captain and crew interviews, and operational uncertainty for shippers routing through West Coast and East Coast gateways.

COSCO operates one of the world's largest container fleets, moving cargo on trans-Pacific, Asia-Europe and intra-Asia trade lanes. Slower port calls can ripple through supply chains that already manage thin vessel schedules.

What is the broader policy question?

The congressional request raises a separate question of whether national security intelligence and military-company designations should factor into decisions about which foreign vessels qualify for reduced inspections. The Coast Guard updated its Qualship 21 eligibility criteria earlier this year, expanding the circumstances that lead to a vessel's removal from the program.

The letter also calls for a review of Hong Kong's continued eligibility as a qualified flag administration under Qualship 21, citing concerns about Beijing's control over the territory.

A Coast Guard spokesperson confirmed the October 15 review and told gCaptain: "The U.S. Coast Guard is responsible for the safety and security of U.S. ports, waterways, and shipping, which are vital to our nation's economic prosperity and national security." The Department of Homeland Security has not publicly announced any further action.

The review now underway will determine whether COSCO's eleven vessels retain preferential treatment into the program's next enrollment cycle, a decision that will reshape shipper and carrier planning around U.S. port calls.