Home
/
RELIGION & LIBERTY ONLINE
/
Time to deep-six the Jones Act?
Time to deep-six the Jones Act?
Jan 8, 2026 11:50 AM

In the past three years New Jersey, New York, and Massachusetts have announced plans to build offshore wind farms that would generate hundreds of megawatts of power. Massachusetts and New Jersey have already awarded building contracts to panies and New York is in the process of reviewing bids. With an energy sector that is facing more and more pressure to decarbonize, the expansion of offshore wind is likely. But there is a major hurdle in the way.

One rarely discussed law is the Merchant Marine Act of monly referred to as “the Jones Act.” The Jones Act does two things: It extends the protections of the Federal Employer’s Liability Act to crew members on U.S.-flagged ships, allowing them to sue for damages due to injury and the like, and it restricts coastwise trade (trade between two ports within the United States) to Jones Act registered ships. The Jones Act is what is known as a cabotage law, which protects a shipping industry from petition. These types of laws are found in other countries and often apply to intra-national shipping by sea, air, or truck.

There are four main requirements to be a Jones pliant ship. They must be built in the United States, controlled by pany that is 75% U.S.-owned, flagged (or registered) in the United States, and have a crew where 75% of the sailors are American.

The Jones Act most recently made news following the devastation of Puerto Rico from Hurricane Maria. Jones pliant ships were the only ones allowed to deliver aid from mainland ports to Puerto Rico because the island is a United States territory. Importantly for Puerto Rico, United States food aid data shows that carrying goods on U.S.-flagged ships increases costs by as much as $50-$60 per ton. In fact, some estimates found that Puerto Rico may have lost between 10%-20% of the aid they were allotted to panies by being forced to use Jones Act vessels instead of foreign vessels.

So why does such a law exist? The Transportation Institute, a non-profit dedicated to upholding the Jones Act and government protection of the shipping industry, is one of the voices defending the Jones Act. This organization argues that it saves American jobs, it improves work conditions, and offers labor protections for sailors. It also argues that it is a successful law because its main purpose was to maintain a large U.S.-flagged fleet of ships that can be used by the Navy during war-time, and restricting access in the coastwise shipping market means there will always be a demand for Jones Act ships. In fairness, there is a justification for having ships that can be called on during war-time. But to suggest that the Jones Act is successful in this goal, one would have to prove that eliminating the Jones Act would substantially reduce the number of U.S.-flagged ships, that the Navy would have a need of such ships, and that the Navy would be unable to use foreign ships. Notably, the last time the Jones Act fleet was called upon in a significant way was to evacuate people from Manhattan after 9/11.

Even with this law, most of the mercial vessels are built outside of the United States (America only builds 1% of them), and there is very little reason to assume that the fleet of U.S.-flagged ships would simply disappear, even slowly, if the Jones Act regulations were lifted. Even if the whole fleet disappeared, I would suggest that in times of war, the Navy could simply co-opt, or even contract foreign flagged ships in the United States for emergency use. Some may say that the quality of foreign vessels could be unreliable, so the Navy wouldn’t be able to use them. But if that is really the case then the U.S.-flagged ship industry is in no danger of disappearing because there will always be a demand for high quality vessels. Competition in this sector would force American shipbuilders and panies to e more efficient in order pete with foreign ships, thus benefiting the consumers.

So why do domestic panies need protection? The Maritime Administration (MARAD), an agency within the U.S. Department of Transportation dealing with waterborne transportation, reported in 2011 that it costs almost three times more to transport cargo on U.S.-flagged ships as opposed to foreign ships. MARAD reported that the costs for labor were five times higher on American ships; government reports have also found that it costs more than twice as much to produce a U.S.-flagged vessel than the same type of vessel in another country. So if the quality of foreign vessels is found to parable to American-built ships, and if the cost is cheaper, and if these vessels could still be used during wartime by the Navy, then why do we have such an inefficient law on the books?

Frederick Bastiat echoed these same concerns in an essay that he wrote titled “The Candlestick Maker’s Petition.” He speaks from the perspective of a candlestick maker who wants the government to restrict people from using the light of the sun because candles, of course, pete with free natural light. His essay demonstrates the absurdity of policies like protectionist tariffs and embargoes against cheap foreign imports, or in this case foreign shipping, to prop up domestic businesses. He says, “for as long as you ban, as you do, foreign coal, iron, wheat, and textiles, in proportion as their price approaches zero, how inconsistent it would be to admit the light of the sun, whose price is zero all day long!” If foreign ships are cheaper to build, operate, and man then putting a ban on their presence in domestic markets is much the same as tariffs on foreign coal, iron, or textiles, and even more similar to banning the light from the sun.

Returning to offshore wind, the Jones Act has important implications into how these wind farms are built. As long as wind farms are placed on the Outer Continental Shelf, the sites are bound by Jones Act restrictions. This means that ships from Europe, which is where the vast majority of offshore wind ships and e from, can’t transport any equipment from the mainland to the worksite. If pany wants to use European installation vessels, they must transfer all of the equipment ponents to a Jones pliant vessel before transferring it to the European installation vessel. Essentially, this just adds in extra steps (and cost) to the process. For a country spending so much time talking about expanding the renewable energy sector, it’s crazy to me that we have policies on the books that make it more difficult to build wind turbines.

Until perceptions of free trade change, free market advocates must gently point out the economic reality behind policies like embargoes, tariffs, and subsidies. Americans deserve the benefits petition in the shipping and wind sector, and it’s imperative that we realize that vision by repealing the Jones Act.

Home page photo Free Images.

Comments
Welcome to mreligion comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
RELIGION & LIBERTY ONLINE
Verse of the Day
  1 John 4:20 In-Context   18 There is no fear in love. But perfect love drives out fear, because fear has to do with punishment. The one who fears is not made perfect in love.   19 We love because he first loved us.   20 Whoever claims to love God yet hates a brother or sister is a liar. For whoever does...
Verse of the Day
  Isaiah 61:7 In-Context   5 Strangers will shepherd your flocks foreigners will work your fields and vineyards.   6 And you will be called priests of the Lord, you will be named ministers of our God. You will feed on the wealth of nations, and in their riches you will boast.   7 Instead of your shame you will receive a double portion,...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 37:1-6   Read Psalm 37:1-6   When we look abroad we see the world full of evil-doers, that flourish and live in ease. So it was seen of old, therefore let us not marvel at the matter. We are tempted to fret at this, to think them the only happy people, and so we are...
Verse of the Day
  Commentary on Todays Verse   Commentary on Psalm 90:12-17   Read Psalm 90:12-17   Those who would learn true wisdom, must pray for Divine instruction, must beg to be taught by the Holy Spirit and for comfort and joy in the returns of God#39s favour. They pray for the mercy of God, for they pretend not to plead any merit of their own....
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 22:4   Read Proverbs 22:4   Where the fear of God is, there will be humility. And much is to be enjoyed by it spiritual riches, and eternal life at last.   Proverbs 22:4 In-Context   2 Rich and poor have this in common: The Lord is the Maker of them all.   3 The prudent see danger...
Verse of the Day
  Commentary on Todays Verse   Commentary on Proverbs 15:4   Read Proverbs 15:4   A good tongue is healing to wounded consciences, by comforting them to sin-sick souls, by convincing them and it reconciles parties at variance.   Proverbs 15:4 In-Context   2 The tongue of the wise adorns knowledge, but the mouth of the fool gushes folly.   3 The eyes of the Lord are...
Verse of the Day
  Commentary on Todays Verse   Complete Concise   Chapter Contents   Exhortations to obedience and faith. 1-6 To piety, and to improve afflictions. 7-12 To gain wisdom. 13-20 Guidance of Wisdom. 21-26 The wicked and the upright. 27-35   Commentary on Proverbs 3:1-6   Read Proverbs 3:1-6   In the way of believing obedience to God#39s commandments health and peace may commonly be enjoyed and though...
Verse of the Day
  Galatians 2:20 In-Context   18 If I rebuild what I destroyed, then I really would be a lawbreaker.   19 For through the law I died to the law so that I might live for God.   20 I have been crucified with Christ and I no longer live, but Christ lives in me. The life I now live in the body, I...
Verse of the Day
  Hebrews 11:6 In-Context   4 By faith Abel brought God a better offering than Cain did. By faith he was commended as righteous, when God spoke well of his offerings. And by faith Abel still speaks, even though he is dead.   5 By faith Enoch was taken from this life, so that he did not experience death: He could not be...
Verse of the Day
  1 Corinthians 3:18-20 In-Context   16 Don't you know that you yourselves are God's temple and that God's Spirit dwells in your midst?   17 If anyone destroys God's temple, God will destroy that person; for God's temple is sacred, and you together are that temple.   18 Do not deceive yourselves. If any of you think you are wise by the standards...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved