I’ve never understood how anyone can keep a straight face when they say the Jones Act somehow is bad for the national economy or for U.S. citizens.
The facts overwhelmingly support the nation’s freight cabotage law, which specifies that cargo moving between domestic ports must be carried on U.S.-crewed, U.S.-owned, U.S.-built, U.S.-flag ships.
The Jones Act helps preserve a viable American maritime industry. It provides an estimated 125,000 American jobs. It generates tax revenues without any cost to the government.
As Seafarers know, jobs aboard Jones Act ships help maintain a pool of loyal, well-trained U.S. crews. With the second phase of Operation Iraqi Freedom under way, the importance of dedicated U.S. mariners to our nation’s military capabilities once again is as plain as day.
There are other specific benefits to the law, but the bottom line is that the Jones Act works. It helps our economy and our national defense capabilities. It’s a source of good jobs.
It’s also constantly under attack by foreign-flag interests who couldn’t care less about what’s best for America. Unfortunately, that has been the case since the law was enacted back in 1920. The enemies of the Jones Act apparently don’t see a problem with opening the domestic trades to runaway-flag rustbuckets. They don’t see a problem with massive U.S. job loss, or threats to our national security or environment.
In the late 1980s, there was a full frontal assault against the law. Foreign shipping interests launched a well-funded grassroots effort to have the law repealed. Eventually, the Persian Gulf War helped kill the anti-Jones Act movement, partly because it reminded policymakers that sealift remained as important as ever.
Since then, opponents of the Jones Act have changed tactics by trying to weaken the law one waiver, one exemption at a time. Most recently, it happened last year with the introduction of Congressional legislation that supposedly centers on shipping rates in the Hawaiian livestock trade. Those bills haven’t gotten much support, but the issue isn’t dead.
A related development involves the Passenger Vessel Services Act (PVSA), a companion law to the Jones Act that covers domestic cruises and ferries. The government of Panama is pressing the U.S. Customs Service to change the Central American country’s designation as a “nearby foreign port” to that of a “distant foreign port.” If that happens, then Panama could avoid parts of the law that block foreign-flag cruise ships from carrying passengers from one U.S. port to another.
That’s not all. Some Mexican and Canadian officials want changes to the so-called North American Free Trade Agreement that would allow one cabotage law encompassing U.S.-, Canadian- and Mexican-flag ships. This would have the same devastating effect on the Jones Act fleet as we’ve seen in the domestic manufacturing sector.
Similarly, foreign groups may push to use short sea shipping— waterborne alternatives to ease congestion on the nation’s highways and railways—to open the Jones Act trade to Mexico and Canada. In promoting short sea shipping, the U.S. Maritime Administration clearly has stated that its plans don’t include changing U.S. cabotage laws. But there are warnings that opponents of the U.S. maritime industry will try to use the program to abolish or weaken the Jones Act.
On that note, I offer a word of praise for the recent ruling by the U.S. Coast Guard on vessel lease financing. The agency’s decision clearly shows that regulations for vessel documentation are not tools for opening the Jones Act to foreign interests.
It’s no stretch to say that, without the Jones Act, the U.S. eventually would be forced to rely on foreign-flag ships to supply American forces overseas with vital materiel.
And it’s just good common sense to recognize that without Jones Act vessels and their U.S. crews, America would depend on foreigners to deliver the 2 billion barrels of refined petroleum products on U.S. waters currently handled each year by U.S.-flag ships.
Those scenarios are beyond risky. They’re unacceptable.
The Jones Act is a huge plus for national security, economic security—and our job security. That’s why the SIU will do whatever it takes to uphold this essential, effective law.
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