I’ve written entirely too much about the Jones Act this year, but like a bad penny, it just keeps turning up in the public discourse. Last time I addressed this subject, it was over an effort by the U.S. shipping industry actually expand this pernicious and archaic protectionist law, an effort that thankfully failed thanks to some last minute interventions by a few members of the Texas congressional delegation.
That was back in May. Now, here we are four months later and the Jones Act has once again become the subject of national media coverage, this time mainly because President Trump keeps having to suspend it in order to help save lives after major hurricane events have devastated the U.S. and its territories. That sentence alone should make any observer wonder: After all, if a law has to be suspended during times of crisis to help save lives, shouldn’t we at some point consider whether the law should exist at all?
Before we get into that, let’s review what the Jones Act actually does. Fellow Forbes contributor Ted Loch-Temziledes, in an excellent piece on the Act, sums it up thusly:
The act regulates all maritime commerce in U.S. waters and between U.S. ports. It requires that shipping of all goods transported between U.S. ports be carried out by ships under the U.S flag. The ships must be constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. Furthermore, the steel used in any foreign repair work on a Jones Act vessel must be less than ten percent of the ship’s total weight. Waivers are only possible on a temporary basis, in cases involving national defense, or other emergencies, such as hurricanes.