Home
/
RELIGION & LIBERTY ONLINE
/
Time to deep-six the Jones Act?
Time to deep-six the Jones Act?
Jan 11, 2026 12:41 PM

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
Can Capital Markets Be Moral?
Can capital markets be moral? At The Veritas Forum at Cambridge University, Rev. Richard Higginson explains how we should rethink our capital system to avoid problems like the financial crisis. His five part plan includes: 1. Rediscovering capital virtues like moderation and prudence, 2. Adopting sound policy like reducing debt and spreading risk, 3. Reviewing the purposes and scrutinizing the practices of banking by a reputable international body, 4. Continuing to invest and give as a sign of hope, and...
Novak Award Winner reflects on influences of Benedict, Michael Novak
Romecontributorto ZENIT, Stefanie DeAngelo, recently interviewed the Acton Institute’s 2012 Novak Award winner, Professor Giovanni Patriarca. During the interview Prof. Patriarca speaks candidly about some of his academic influences, including Michael Novak and Benedict XVI. He also offers his reasons for hope in ing the prolonged global economic crisis. Some Contemporary Reflections: An Itinerary from Novak to Benedict XVI by Stefanie DeAngelo 2012 Novak Award Winner Prof. Giovanni Patriarca ZENIT: You have recently received the Novak Award. What are some...
Novak Award Winner Assesses Spiritual, Vocational Crisis of Economy
Acton President Rev. Robert Sirico presents the 2012 Novak Award to Prof. Giovanni Patriarca An overflow crowd, which included two current and one former rector of Rome’s pontifical universities, enthusiastically turned out on November 29 to support the winner of the Acton Institute’s Novak Award. Students, professors, journalists, entrepreneurs and politicians alike packed the Aula delle Tesi auditorium at the Pontifical University of Thomas Aquinas to hear Prof. Giovanni Patriarca deliver his lecture “Against Apathy: Reconstruction of a Cultural Identity”....
The Pin that Might Pop the Higher-Ed Bubble
mented last week on the “textbook bubble” (here) and mented in the past on the “higher-ed bubble” and the character of American education more generally (see here, here, and here). To briefly summarize, over the last few decades the quality of higher education has diminished while the cost and the number of people receiving college degrees has increased. The cost is being paid for, in large part, through government subsidized loans. But with the drop in quality and increase in...
Obama Administration’s Misjudgement of the Nation’s Conscience
Currently, there are forty cases against the Obamacare HHS mandate. The Affordable Care Act of 2010 requires employers to provide, as employee health care, “preventative services” such as abortion and sterilization. John Daniel Davidson, in First Things, says that the president and his administration have grossly misjudged this entire situation. In Davidson’s view, the administration “in their conceit” seemed to think that millions of Americans would simply put aside their deeply held religious and moral convictions and play along with...
Interview: Rev. Sirico on the Market Economy and the Moral Life
Rev. Robert Sirico, author of “Defending the Free Market: The Moral Case for a Free Economy,” appears at a Rome press conference for his book. The Catholic News Agency recently interviewed Acton’s president Rev. Robert Sirico during a press conference held last week in Rome for Vatican journalists. The local media were introduced to his new book, “Defending the Free Market: the Moral Case for a Free Economy.” In the CNA article “Fixing economic crisis requires financial and moral truth,...
The FAQs: What is the Fiscal Cliff?
What is the “fiscal cliff”? The term “fiscal cliff”, which is believed to have originated in Congressional testimony by Federal Reserve Chairman Ben Bernanke, refers to the substantial changes to tax and spending policies that are scheduled to automatically take effect in January 2013. The changes are intended to significantly reduce the federal budget deficit. What are the tax and spending policies that will change? Several major tax provisions are set to expire at year’s end: The 2001/2003 Bush tax...
St. John of Damascus in the History of Liberty
Today (Dec. 4) memorated an important, though sometimes little-known, saint: St. John of Damascus. Not only is he important to Church history as a theologian, hymnographer, liturgist, and defender of Orthodoxy, but he is also important, I believe, to the history of liberty. In a series of decrees from 726-729, the Roman (Byzantine) emperor Leo III the Isaurian declared that the making and veneration of religious icons, such as the one to the right, be banned as idolatrous and that...
The Catholicity of Subsidiarity
Earlier this week we noted that Patrick Brennan posted a paper, “Subsidiarity in the Tradition of Catholic Social Doctrine,” which unpacks some of the recent background and implications for the use of the principle in Catholic social thought. As Brennan observes, “Although present in germ from the first Christian century, Catholic social thought began to emerge as a unified body of doctrine in the nineteenth century….” Brennan goes on to highlight the particularly Thomistic roots of the doctrine of subsidiarity,...
Subsidiarity in the Tradition of Catholic Social Doctrine
Patrick McKinley Brennan, a professor at Villanova University School of Law, has a new paper that considers the place subsidiarity in the tradition of Catholic Social Doctrine: Subsidiarity is often described as a norm calling for the devolution of power or for performing social functions at the lowest possible level. In Catholic social doctrine, it is neither. Subsidiarity is the fixed and immovable ontological principle according to which mon good is to be achieved through a plurality of social forms....
Related Classification
Copyright 2023-2026 - www.mreligion.com All Rights Reserved