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Does the Jones Act preserve US jobs in the maritime sector?

Saturday, July 18, 2020
By Samuel Henning
YES

The Merchant Marine Act of 1920, commonly known as the Jones Act, mandates that ships carrying freight between U.S. ports be built and registered in the U.S., be staffed by a crew that is at least 75% American, and be owned by U.S. companies. Its requirements support 650,000 U.S. jobs and add $154 billion to the economy, according to the American Waterway Operators, a trade group that represents tugboat, towboat and barge operators.

Critics say the value of the jobs and shipping revenues it ensures is outweighed by higher costs and environmental impacts on transport across the economy. The Cato Institute, a free-market-oriented think tank, terms it a "stealth tax" that is "archaic" and "burdensome." Utah Sen. Mike Lee says it is "long past time" for the repeal bill he introduced last year.

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