Home > FT > Course-Correcting the Jones Act: A Solution for the Unintended Costs of a Maritime “Buy American” Law

Course-Correcting the Jones Act: A Solution for the Unintended Costs of a Maritime “Buy American” Law

Joshua Keyser
90 Geo. Wash. L. Rev. 270

The Jones Act, which mandates that coastwise trade between points in the United States be conducted by U.S.-built and flagged vessels, is a controversial piece of legislation. The century-old Act reserves the construction, crewing, and operation of all vessels engaged in domestic oceangoing shipping for American nationals and companies, shutting out foreign competition and making it an important “Buy American” law to U.S. shipping interests. Those who have called for its abolition point out the higher shipping costs it imposes upon industries facing vessel shortages and outlying regions of the United States, like Puerto Rico and Alaska. Its defenders argue that it plays an important role in making U.S.-flagged sealift available in times of war and that the already-struggling American shipping sector would face collapse without protection from lower-cost foreign shipping.

This Note argues that a compromise solution is possible: a limited and reasonable waiver process should be available on a showing of serious hull shortage. Burgeoning markets like offshore wind and liquefied natural gas should not be subject to years-long delays when specialized vessels to meet their needs are simply not available. The status quo does not serve the Jones Act’s purpose in making vessels available for wartime sealift, and only serves to impose arbitrary costs on U.S. industry. Similarly, under the status quo, areas affected by natural disasters are subject to delays in critical aid supplies. A rational system for waivers, beyond the current requirement of necessity to national security, could meet these needs while still supporting the purposes of the Jones Act.

Read the Full Note Here.