Monday, March 4, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, December 20, 2017
Bloomberg: The Jones Act serves no purpose
By Michael Hansen @ 2:25 AM :: 4026 Views :: Jones Act

Bloomberg finds Jones Act serves no purpose

by Michael Hansen, Hawaii Shippers Council, December 18, 2017

Bloomberg published another editorial, “The Jones Act serves no purpose,” on December 14, 2017, which is the second in a planned series of four editorials focusing on the impacts of Jones Act cabotage on the U.S. economy.

The subtitle of the instant editorial clearly states its point, “If the shipping law worked as intended, its costs might be forgiven. But it doesn't.” It follows the first Bloomberg editorial, “The Jones Act costs all Americans too much,” published December 12, 2017, which described the economic burden of Jones Act cabotage.

The authors included in their fifth paragraph a link over “large oceangoing vessels” to a Hawaii Shippers’ Council chart, “Merchant ships constructed, under construction, or on order in U.S. yards years 2000 – 2016,” May 26, 2016.

Key excerpts from Bloomberg:

The costs of the Jones Act . . . . . get too little attention. The toll is heavy, and the burden is unfairly distributed. But what if the law serves a vital purpose? Are these costs somehow justified?

Defenders of the law say it's needed to sustain maritime industry -- a sector that's essential during national emergencies or wartime. Yet if this is the law's purpose, it sure isn't working.

In 1960, there were nearly 3,000 U.S.-flag oceangoing vessels -- 17 percent of the world fleet. By 2016, there were 169 such ships -- less than one percent of the global total. And of those, just 92 were Jones Act vessels carrying cargo between U.S. ports.

The oceangoing Jones Act fleet has shrunk by more than half since 2000. The ships tend to be older and less efficient and can be less safe.

The U.S. shipbuilding industry has lost its competitive edge, and the number of shipyards that build large oceangoing vessels has steadily fallen.

U.S. output has more than quadrupled since 1960, but the amount of freight carried by U.S. coastal shipping -- an entirely protected market -- has fallen by almost half.

Even the national security argument for the Jones Act fleet rings increasingly hollow. Foreign-flag ships safely make thousands of calls at U.S. ports each year. Although the U.S. military taps Jones Act vessels for sealift, it also regularly uses foreign-built and foreign-flagged ships for that purpose.

More broadly, a buy-and-build-American approach doesn't necessarily make America safer.

Undaunted, Jones Act champions propose to make the law even more onerous.

But give the Jones Act this much: Rarely has a law that costs so much and achieves so little survived so long.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

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 Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

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



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii