Posted on Jul 18, 2017
Senator McCain Introduces New Bill to Repeal Jones Act – gCaptain
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Been in the shipping business for 24 years involved in chemical tankers, containerships, pure car carriers, break-bulk ships, and ocean going barges. The Jones Act exist solely to protect the railroads and the marine labor unions.
Jones Act is a Cabotage law. If one wanted to load cargo aboard a ship in a US port, including territories, and discharge in a US port, the ship must be built in the USA, owned by USA citizens, and manned by Americans. This means cargo must be carried by ships built in the most expensive shipyards and manned by the most expensive sailors in the world.
Matson Lines announced construction of two 850ft containerships in Philadelphia for a cost of $418mil total. This ship will be Jones Act compliant and carry 3,800 TEU's. In contrast, Emma Maersk which 1303ft and carries 15,000 TEU's cost $145mil built in Denmark. The Jones Act imposes tens of millions of regulatory burden upon those in Hawaii and Alaska on American produced goods. So, if you are a business in Hawaii and wanted to buy a gizmo manufactured in Japan or California for the exact same price with the same quality, which one will you buy? The one from Japan, because all goods from California will cost much more to deliver.
Domestically, the Jones Act has eliminated any rail competition by ships. There is no ocean transport option from Miami to NYC. Customers must use the rail, air, or highway. Moving cargo aboard ship is third less expensive mode. Pipeline is least expensive, then barge carriage. Using a ship v. rail will greatly reduce retail costs of any product. Again, the Jones Act is a Gov't forced tariff on American consumers.
Politically, there is little opposition to the Jones Act because the American shipping industry is virtually non-existent to American voters. Bulk of Jones Act compliant ships are tankers in the Alaskan trade. Whereas, other transportation modes have vast lobbying influence in Wash DC. A medium size containership carrying cargo from Houston to New Orleans will eliminate thousands of long distance drays. So who does a politician listen too, thirty crewman on a ship or tens of thousands associated with the rail or trucking industries.
The Jones Act can be modifies to make American shipping competitive, but it will require lower pay for sailors and lower pay for union ship buildings. Not going to happen. The Jones Act has killed the US containership business and has built a protectionist wall around oil, and chemical tankers.
Jones Act is a Cabotage law. If one wanted to load cargo aboard a ship in a US port, including territories, and discharge in a US port, the ship must be built in the USA, owned by USA citizens, and manned by Americans. This means cargo must be carried by ships built in the most expensive shipyards and manned by the most expensive sailors in the world.
Matson Lines announced construction of two 850ft containerships in Philadelphia for a cost of $418mil total. This ship will be Jones Act compliant and carry 3,800 TEU's. In contrast, Emma Maersk which 1303ft and carries 15,000 TEU's cost $145mil built in Denmark. The Jones Act imposes tens of millions of regulatory burden upon those in Hawaii and Alaska on American produced goods. So, if you are a business in Hawaii and wanted to buy a gizmo manufactured in Japan or California for the exact same price with the same quality, which one will you buy? The one from Japan, because all goods from California will cost much more to deliver.
Domestically, the Jones Act has eliminated any rail competition by ships. There is no ocean transport option from Miami to NYC. Customers must use the rail, air, or highway. Moving cargo aboard ship is third less expensive mode. Pipeline is least expensive, then barge carriage. Using a ship v. rail will greatly reduce retail costs of any product. Again, the Jones Act is a Gov't forced tariff on American consumers.
Politically, there is little opposition to the Jones Act because the American shipping industry is virtually non-existent to American voters. Bulk of Jones Act compliant ships are tankers in the Alaskan trade. Whereas, other transportation modes have vast lobbying influence in Wash DC. A medium size containership carrying cargo from Houston to New Orleans will eliminate thousands of long distance drays. So who does a politician listen too, thirty crewman on a ship or tens of thousands associated with the rail or trucking industries.
The Jones Act can be modifies to make American shipping competitive, but it will require lower pay for sailors and lower pay for union ship buildings. Not going to happen. The Jones Act has killed the US containership business and has built a protectionist wall around oil, and chemical tankers.
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SN Greg Wright
What you're failing to address, LT, is that the Jones Act also provides for governmental subsidies for the cost of ships and their operations, in order to ensure that those hulls are 'on call' for the government in times of need (read: war). Most American-flagged hulls are built with government subsidies for specifically that reason. They can be conscripted into service to deliver cargo for the American war-fighting machine. You are correct that foreign-flagged sailors are paid less. You would also be correct if you stated that dollars spent on their training for catastrophic events was also less robust than the US is required to meet. So sure. Repeal the Jones Act. Let Filipino sailors deliver Alaskan oil to Seattle, Portland, SF, LA. Then, when war comes, and those hulls DISAFUCKINGPEAR, don't blame me. Or anyone else. You wanted to repeal it.
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LCDR Gordon Brown
I cannot even begin to point out your massive errors in your posting. What Merchant License did or do you hold?
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LTJG Richard Bruce
Please list my errors.
Due to my work at the Regional Exam Center in New Orleans, I was prohibited to hold a license for a period which went past my recency requirement. Qualified to sit of Third Asst Eng Steam and Motor, Second Mate Oceans unlimited tonnage w/sail endorsement, and Master 1600 tons Oceans. Did hold a Z-card for any engine/deck rating. Briefly sailed as owner's representative on a Pure Car Carrier and two LASH ships. Supercargo and Ship's Agent for containerships and break-bulk ships in New Orleans. Worked in engineering and operations departments for many years. Lately, specialized in Dangerous Goods stowage, compliance, and logistics.
Due to my work at the Regional Exam Center in New Orleans, I was prohibited to hold a license for a period which went past my recency requirement. Qualified to sit of Third Asst Eng Steam and Motor, Second Mate Oceans unlimited tonnage w/sail endorsement, and Master 1600 tons Oceans. Did hold a Z-card for any engine/deck rating. Briefly sailed as owner's representative on a Pure Car Carrier and two LASH ships. Supercargo and Ship's Agent for containerships and break-bulk ships in New Orleans. Worked in engineering and operations departments for many years. Lately, specialized in Dangerous Goods stowage, compliance, and logistics.
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