Sunday, June 23, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, January 5, 2024
As new year dawns, old maritime law still a problem
By Grassroot Institute @ 2:49 PM :: 1569 Views :: Jones Act

As new year dawns, old maritime law still a problem

from Grassroot Institute of Hawaii, December 29, 2023

The outdated Jones Act is blamed for increasing East Coast fuel costs, killing a massive wind farm project and crippling LNG tranport

In 2020, the Grassroot Institute of Hawaii commissioned a study that found the federal maritime law known as the Jones Act costs Hawaii about $1.2 billion a year, or about $1,800 per average Hawaii family.

Jones Act lobbyists quibbled with the numbers, but economic logic alone confirms that you will drive up transportation costs if you restrict shipping competition between U.S. ports to only vessels that are flagged and built in the U.S. and mostly owned and crewed by Americans.

And now we have more evidence that this is true.

A December 2023 paper from two researchers at the National Bureau of Economic Research found that the 104-year-old protectionist law is costing East Coast consumers about $769 million per year by adding 63 cents, 80 cents and 82 cents per barrel, respectively, for gasoline, jet fuel, and diesel.

Meanwhile, the Jones Act was also cited as one reason for the failure of a massive wind farm planned for the New Jersey coast. According to Reason magazine, managers of the project pointed to vessel-availability issues — namely, there are no Jones Act-complaint wind turbine installation vessels in operation.

Past U.S. offshore wind projects have used foreign-flagged turbine installation ships that came with complicated legal loopholes. Meanwhile, the single Jones Act turbine installation vessel that is under construction in a U.S. shipyard ran into delays that bumped its completion date from 2023 to possibly 2025. Combined with inflation and supply chain issues, the wind farm developers threw in the towel.

But the Jones Act doesn’t just make it more expensive to move petroleum or build wind farms. Now, thanks to a recent U.S. Customs and Border Protection ruling, it is even harder to move liquified natural gas.

The Competitive Enterprise Institute reports that foreign-flagged LNG tankers often pick up fuel at several U.S. ports before carrying it abroad. In the process of connecting to pipes from the onshore fuel terminal to collect LNG, tankers let off a small amount of gas into the pipes for safety reasons. Customs decided this “venting” of gas equals a transportation of goods between U.S. ports under the Jones Act and banned the practice.

To read more about how the Jones Act messes with the transport of LNG, go here.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

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

FIRE

Fix Oahu!

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 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

HiFiCo

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

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii