Saturday, July 20, 2024
Hawai'i Free Press

Current Articles | Archives

Thursday, October 29, 2015
Investment Advice: Repeal the Jones Act
By Michael Hansen @ 3:23 AM :: 4738 Views :: Jones Act

by Michael Hansen Hawaii Shippers Council, October 28, 2015

The Cabot Investing Advice posted on October 27th an op-ed by its president Timothy Lutts advocating for repeal of the Jones Act.

Lutts mentions the Jones Act in the context of the Puerto Rico financial crisis, the loss of the EL FARO, and the distortions it causes in the economy.

Key excerpts:

As to the reasons behind Puerto Rico’s bankruptcy, there are many, including poor management, lack of autonomy and bloated government. Fixing those is not simple.

But the one contributing factor that would be simple to fix, at least from my point of view, is the Merchant Marine Act of 1920, commonly known as the Jones Act for its sponsor, Senator Wesley Jones.

The Jones Act, which became a law immediately after World War I, governs cabotage, which is the transport of goods or passengers between two points in the same country. Originally pertaining to sailing vessels, the word cabotage is derived from the French caboter, meaning to sail along a coast, which is close to the Spanish cabo (think Mexican beaches) and stems from the Latin caput, for head.

Nowadays, cabotage applies to transport accomplished via any mode, including rail and air. Cabotage regulations, for example, are the reason that foreign airlines can’t sell Americans tickets to fly between two American cities, despite the fact that they fly there.

But back on the high seas, the Jones Act still exerts enormous power. It restricts the carriage of goods or passengers between U.S. ports to U.S. built and flagged vessels. This applies to barge operators on the inland waterways, freighters on the Great Lakes, and deep-sea ocean carriers serving Hawaii, Alaska, Puerto Rico and Guam.

In 2003, Representative Ed Case (D-Hawaii), attempted to repeal the Act, arguing that it increased the cost of living in the islands and claiming that savings of 40% would be gained in some sectors by repeal.

There are Republicans and Democrats who want it repealed to lower barriers to trade and thus costs for their constituents. But there are Democrats who defend it for the job protections it provides to seamen and shipbuilders, and there are Republicans who defend it for its contribution to national security.

But then there’s the El Faro.

The El Faro was a 735-foot United-States-flagged cargo ship, built in 1975 in Chester, Pennsylvania, and until recently spending her golden years (rusty years, some might say), shuttling between Jacksonville, Florida and Puerto Rico.

If we can repeal the Jones Act, we can not only avoid a repeat of the El Faro sinking, we can also remove one of the impediments to Puerto Rico’s economic health, and—most important of all—end the protectionism that’s distorted the free markets of shipping in this country for so long.

read … Repeal the Jones Act


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together


Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii