Home
/
RELIGION & LIBERTY ONLINE
/
Time to deep-six the Jones Act?
Time to deep-six the Jones Act?
Dec 3, 2025 12:56 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
What’s a Few Dead Eagles Between Friends?
There are currently two sets of laws in America: laws that apply to everyone and laws that apply to everyone except for friends of the Obama administration. In January I wrote about how the executive branch had argued that the Migratory Bird Treaty Act of 1918 should be broadly interpreted in order to impose criminal liability for actions that indirectly result in a protected bird’s death. The administration used that reasoning to file criminal charges against three panies. The U.S....
Acton University Evening Speaker: William B. Allen
We are about a month away from Acton University, and another keynote speaker is William B. Allen. He is an expert in the American founding and U.S. Constitution; the American founders; the influence of various political philosophers on the American founding. He is Emeritus Professor of Political Philosophy in the Department of Political Science and Emeritus Dean, James Madison College, at Michigan State University. Currently he serves as Visiting Senior Professor in the Matthew J. Ryan Center for the Study...
Free primary education is a fundamental good. Isn’t it?
Private schools are for the privileged and those willing to pay high costs for education; everyone else attends public school or seeks alternate options: this is the accepted wisdom. In the United States, the vast majority of students at the primary and secondary level attend public school, funded by the government. When considering education in the developing world, we may hold fast to this thinking, believing that for those in severely impoverished areas, private education is an unrealistic and scarce...
Kuyper on Creation and Stewardship
In Abraham Kuyper’s recently translated sermon, “Rooted & Grounded,” he explains that the church is both “organism” and “institution,” drawing from both nature and the work of human hands. Pointing to Ephesians 3:17, he writes that, “the church of the Lord is one loaf, dough that rise according to its nature but nevertheless kneaded with human hands, and baked like bread.” Yet, as he goes on to note, this two-fold requirement is not limited to the church, but also applies...
Money is a Means
Over at Think Christian today, I lend some broader perspective concerning the link between money and happiness occasioned by a piece on The Atlantic on some research that challenged some of the accepted scholarly wisdom on the subject. The Bible is our best resource for getting the connection between material and spiritual goods right. I conclude in the TC piece, “As Jesus put it, ‘life does not consist in an abundance of possessions.'” Or to put it another way, we...
Advice for College Graduates on Money, Meaning, and Mission
Yesterday, Jordan Ballor explored the relationship betweenmoney and happiness, referring to money as “a good, but not a terminal good,” and pointing to Jesus’ reminder that “life does not consist in an abundance of possessions.” Over at Café Hayek, economist Russ Roberts offers a panion to this, advising college graduates to have a healthy perspective about money and meaning when entering the job market: Don’t take the job that pays the most money. Nothing wrong with money, but it’s the...
Evangelical and Catholic Leaders Claim IRS Harrassment
After the recent admission by the IRS that employees targeted conservative groups, two prominent Christians e forward claiming they too were harassed for their political views. Franklin Graham, son of the famed evangelist, and Dr. Anne Hendershott, a Catholic professor and author, say they were audited by the IRS after making political statements that criticized liberal political groups. Franklin Graham recently sent a letter to President Obama saying that he believes his organization was also unfairly targeted for extra scrutiny...
‘Economic Growth: Unleashing the Potential of Human Flourishing’: Values & Capitalism Publication
Values & Capitalism, a project of the American Enterprise Institute, has published a primer of sorts entitled, Economic Growth: Unleashing the Potential of Human Flourishing. The text is just over 100 pages, and gives the reader a thoughtful, concise and essential source on free market economics and its correlation to human flourishing and economic growth. Authors Edd S. Noell, Stephen L. S. Smith and Bruce G. Webb say this about their work: [T]he core proposition of this book is that...
Affirmative Action Limits Opportunities For Asian Americans
One of the realities of using race to socially engineer the racial make-up of college freshman classes by elite decision-makers, is that it does nothing but perpetuate the injustice of institutional and planned discrimination. This is the greatest irony of affirmative action education policy. The attempt to redress past injustices does nothing but set the stage for new forms of injustice against other groups. Today, Asian-American high-school students are faced with the reality that, if they are high achievers, top...
Senator Cornyn Quotes Lord Acton on Abuse of Power
Senator John Cornyn (R-Texas) took to the Senate floor yesterday and quoted Lord Acton’s well known dictum, “Power tends to corrupt and absolute power corrupts absolutely.” There’s a partisan bite to his words, but he mostly warns against the grave dangers and tyranny under concentrated and centralized power. Cornyn of course, is addressing the multitude of scandals blowing up in Washington, many of them linked to the White House. He also admits corruption has been a problem under both political...
Related Classification
Copyright 2023-2025 - www.mreligion.com All Rights Reserved