The Jones Act : an economic and political evaluation

Thesis (S.M.)--Massachusetts Institute of Technology, Dept. of Ocean Engineering, 2004.Includes bibliographical references (leaves 115-119).On June 5, 1920, the Merchant Marine Act of 1920, also known as the Jones Act, became law. The Jones Act, a cabotage law, restricts American waterborne domestic trade to vessels flagged in the United States, owned by citizens of the United States, operated by citizens of the United States, and built in the United States. This highly restrictive law has become an integral part of American maritime policy. A brief history of the maritime policies of the United States and the Merchant Marine Act of 1920 is followed by an evaluation of the effects of the act on the maritime and shipbuilding industries, an evaluation of the effects on the American economy, and an evaluation of the political debate surrounding the act. Conclusions are made regarding the effects of the act and recommendations are made for the future of the act.by Richard A. Smith.S.M

The Jones Act: it is time for reform

The Jones Act was passed in 1920 as an amendment to the Merchant Marine Act. Its initial purpose was to protect a rail monopoly operating between the state of Washington and the territory of Alaska. It restricted transportation between U.S. ports to U.S. built, owned, registered and crewed vessels. Over the past 77 years it has become very controversial. This paper examines its costs and benefits and concludes that the Jones Act is indeed in need of major reform

A Look At The Merchant Marine Act Of 1920: Is It Time For The U.S. To Change Course?

Due to recent changes in global shipping, we investigate the Merchant Marine Act of 1920 – also known as the Jones Act. When constructed, our governing body decided that the Act was necessary for the country’s naval defenses and for proper growth of foreign and domestic commerce. The plan was for the fleet to be owned and operated privately by citizens of the United States. However, in today’s economic conditions some are wondering if the Jones Act is a liability to foreign commerce. In our work, we explore the advantages of naval defense and shipbuilding as well as the disadvantages on commerce and U.S. transportation infrastructure. To conclude, we offer opinions for policy changes to create a more level playing field for the U.S. to compete in global logistics

Jonesing to Repeal the Jones Act

The Jones Act—the title for a series of laws—is the backbone of American cabotage laws, and yet, it is rarely talked about in mainstream American discourse. The original Jones Act was enacted in 1920, and since 1920, it has not changed to any measurable degree. The Jones Act requires that all domestic maritime shipping—movement of merchandise from one U.S. point to another U.S. point—be completed by ships that are owned by U.S. citizens, operated by U.S. citizen crews, built in the U.S., and flagged by the U.S. These requirements have hampered the American economy, its security, and the maintenance of its merchant marine, even though these are the areas that are supposed to be boosted by the Act. These requirements, along with the numerous expansions and exemptions that litter their enforcement, have warped American shipping standards and their costs. In fact, because of the Jones Act, the U.S. “is ranked as having the most restrictive maritime transport industry among all OECD countries.” Now, after over 100 years under a regime that has only hurt the United States, it is time to repeal the Jones Act—either in its entirety or partially—and bring the U.S. into the 21st Century