Home
/
RELIGION & LIBERTY ONLINE
/
Time to deep-six the Jones Act?
Time to deep-six the Jones Act?
Jan 8, 2026 6:59 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
Technology to God’s Glory
David Murray is Professor of Old Testament and Practical Theology at Puritan Reformed Theological Seminary, and chairman of HeadHeartHand Media, announces the release of a new video product, God’s Technology, a product about “training our children to use technology to God’s glory.” I had the pleasure of meeting Dr. Murray over lunch one day, and I look forward to seeing his presentation of “a Christian response to the digital revolution.” Dr. Murray blogs here. You can see the trailer for...
Deficits, Debt, and Self-Deception
This week’s Acton Commentary: Deficits, Debt, and Self-Deception By Samuel Gregg It passed almost unnoticed, but in late July the Obama Administration raised the Federal Government’s budget deficit forecast for fiscal year 2011 to $1.4 trillion. That’s up from February’s forecast of $1.267 trillion. In July alone, the Federal Government’s deficit was $165 billion, of which $20 billion was for interest-payments on debt. The long-term outlook is even worse. The U.S. Government is now borrowing approximately 41 cents of every...
Dehumanization and punishment
Two of the things I’ve paid some attention to, one more recently and the other as an ongoing area of interest, came together in an Instapundit update yesterday. Glenn Reynolds linked to a video of a NYC cop who “threatens a man taking cell phone video with arrest.” This picks up the attention given here and here to the question of law enforcement and ‘citizen photojournalism.’ But what really struck me about this story was the threat attributed to the...
Francis Asbury: Born 265 Years ago Today
President Calvin Coolidge called Francis Asbury a “prophet in the wilderness.” He has also been called “the bishop on horseback” and “the prophet of the long road” for his prolific treks across the American frontier. The Methodist bishop who was born on August 20, 1745, was the architect of the American Methodist movement. The denomination grew from a few hundred upon his arrival to over 200,000 members at the time of his death. At his death in 1816, the Methodist...
Monks for Economic Liberty
We at Acton have been among the loudest critics of clergy and other religious leaders who undermine economic freedom (and therefore prosperity, including for the poor) by advocating more extensive government intervention in economic affairs. So we should be the first to applaud when clerics strike a blow for freedom. Kudos to the monks of St. Joseph Abbey in Covington, Louisiana. Monasteries may seem an unlikely venue for capitalist ferment, but in fact they hold an important place in the...
The Rebel Economist Strikes Again
It’s always nice to hear from old friends, even when said old friends are unsettling you with tales of insane government spending. When last we heard from former Acton colleague Michelle McAdoo here on the PowerBlog, she was taking Washington by storm with her proposal for an “alternative stimulus.” In the interceding time, she’s gotten married (congratulations!) and now has returned with more tales from the dark and unsettling world of “stimulus.” Enjoy! Update/Clarification: Michelle adds: “just so you know,...
Jim Wallis/George Soros Update
World magazine has an update on the Jim Wallis story that I blogged about earlier this week. A Sojourners spokesman today reversed an earlier Wallis denial and confirmed the organization has received funding from Soros’ Open Society Institute. Sojourners is a leading organization on the religious left founded by Wallis, who is a spiritual adviser to President Obama. Soros is the billionaire financier of Moveon.org, a Democrat-leaning organization that pushes for abortion, atheism, bigger government, and other progressive causes. The...
Raves for Ecumenical Babel
Two more thoughtful reviews of Jordan Ballor’s Ecumenical Babel: Confusing Economic Ideology and the Church’s Social Witness, now available on Kindle. First, from John Armstrong on his ACT 3 blog: In reducing its witness to advocacy for a particular set of policies, the ecumenical movement has abandoned the attempt to proclaim the Gospel, the true foundation of its spiritual authority. “This is surely a form of culture-Christianity,” writes Ramsey, “even if it is not that of the great cultural churches...
Paul Ramsey on the Church and the Magistrate
One of the inspirations for my little book, Ecumenical Babel: Confusing Economic Ideology and the Church’s Social Witness, was the incisive and insightful critique of the ecumenical movement from the Princeton theological ethicist Paul Ramsey. Ramsey’s book, Who Speaks for the Church? A Critique of the 1966 Geneva Conference on Church and Society, has a wealth of both theoretical and concrete reflections on the nature of ecumenical social witness and the relationship between church and society. He concludes the book...
Youth: Problem or Solution for New Jobs?
The front page of a recent issue of the Vatican daily L’Osservatore Romano read like an Italian “Help Wanted” listing: “Lavori per Giovani Cercasi” (cf. Aug. 13 2010). Unfortunately, this eye-catching headline was not a classified ad targeting young professionals for job openings at the Holy See’s many curial and administrative offices – the prized “stable” positions that would have Roman youth queuing in lines much longer those to enter Sunday Mass at St. Peter’s Basilica! Rather, the Vatican newspaper...
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved