Thursday, August 06, 2020
Hawai'i Free Press

Current Articles | Archives

Monday, July 20, 2020
A Jones Act Debate: Admiral vs Attorney
By Michael Hansen @ 5:03 PM :: 600 Views :: Jones Act

A Jones Act debate: Admiral versus Attorney

by Michael Hansen, Hawaii Shippers Council, July 19, 2020

Honolulu, Hawaii, resident, Admiral Paul Frederick Zukunft, U.S. Coast Guard, Retired, posted on July 18, 2020, to his LinkedIn page, a statement supporting the Jones Act (i.e., The Merchant Marine Act of 1920) in recognition of its 100th anniversary on June 5th.

San Francisco, California-based, corporate and maritime attorney, Wayne A. Parker, responded to Admiral Zukunft by posting the following day two effective rebuttals on the Admiral’s LinkedIn page.

The Admiral and the Attorney are well matched for this debate in terms of their education and experience, and their exchange is instructive of how the Jones Act debate is typically conducted.

ADM Zukunft (born 1955) is a graduate of the U.S. Coast Guard Academy and served as a USCG officer for 41 years (1977 – 2018). His postings included: Chief of Staff, at the Fourteenth Coast Guard District in Honolulu, Hawaii; Commander, Coast Guard Pacific Area (2012 – 2014); and 25th Commandant of the U.S. Coast Guard (2014 – 2018). He is currently: a Honolulu resident; Board Member, Navy League of the United States, Honolulu Council; Member Of The Board Of Advisors, Military Affairs Council, Honolulu; and, Principal, Paul Zukunft Worldwide Maritime Consulting, LLC.

Attorney Parker is a graduate of the U.S. Naval Academy (1986 – 1990) and the University of Southern California, Gould School of Law (2000 – 2003). His employment experience includes: Associate General Counsel, Horizon Lines, Inc., Charlotte, North Carolina (2011 – 2015); and, Assistant General Counsel, Matson, Inc. (2015 – 2018).

ADM Zukunft posted on July 18, 2020:

June 5th marked the 100th anniversary of the Merchant Marine Act, otherwise known as the Jones Act. It’s passage was visionary, yet there are members of Congress who are short-sighted to seek its repeal.

So let’s talk numbers - 650K jobs with the top 3 in LA, FL and TX. $154b contribution to the US economy.

And now let’s think strategic. Foreign flagged vessels and crews would displace US flagged vessels and merchant mariners. Our 5 Jones Act deep water shipyards would close down, and the US technical expertise would go down with them. Our inland rivers would be serviced by foreign flagged line boats and crews, while dredging operations in our military strategic ports would also be foreign crewed and subject to sabotage. Offshore oil industry?

A repeal would deprive the US commercial fleet and mariners who service that industry. Who fills this void? China!

To those members of Congress seeking to repeal the Jones Act, read John Pomfret’s book, “The Beautiful Country and the Middle Kingdom” and start playing chess instead of checkers!

Attorney Parker posted his first rebuttal the next day:

During my time with Horizon Lines and Matson, I provided legal advice on every aspect of operating these companies in their Jones Act trades, as well as their foreign trade with customers in China and the Southwest Pacific.

I was the attorney primarily charged with advising senior executive management on all Jones Act-related issues, including vessel and corporate financing, vessel repairs and upgrades, compliance, safety/quality/environmental issues, accounting matters, etc. I worked with the USCG and MARAD on a frequent basis.

What I learned in that time was the Jones Act has been an abysmal policy failure. It has not saved US mariner and shipbuilding jobs. US shipyards capable of building ocean going vessels are almost entirely reliant on DoD contracts.

Jones Act carriers rarely buy new vessels built in US shipyards; instead, they refurbish or repair them in foreign (often Chinese) yards to the fullest extent permitted by the Jones Act and related regulations. I know because I negotiated such agreements and worked with our engineering, tax and customs groups to make these things happen.

The tiny number of Jones Act commercial vessels is insufficient and could never support the relatively small US shipyard industry.

Attorney Parker’s second post on the same day:

As I explain in my [first] response, I served seven plus years with Horizon Lines and Matson and saw how the Jones Act really is a policy failure. Anyone who actually does their homework and researches the size of the US commercial vessel fleet, its market share, the size of the workforce and its demand for US-built vessels cannot help see the slow but unmistakable decline of the last fifty years.

At best, the statute props up inefficient ocean carriers while also hamstringing them with regulations regarding vessel purchase and repair options, manning, etc. It also speaks volumes that anyone who reads the financial statements for Horizon Lines (now a Matson subsidiary), Matson, Pasha, and TOTE will see all these carriers depend heavily on US government carriage contracts. Take those away and these carriers would be faced with severe revenue declines.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

ACA Signups Hawaii

ALEC

Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HIEC.Coop

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

SenatorFong.com

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT