Hurricane Maria and the devastation caused to Puerto Rico brought the Jones Act to the front and center of the debate on relief efforts. It motivated US senators John McCain and Mike Lee to introduce legislation to permanently exempt Puerto Rico from the Merchant Marine Act of 1920.
The proponents of the Jones Act are not prepared to budge. In doing so, (Puerto Rico aside for the moment) they are doing a grave injustice to the advancement of coastal shipping and short-sea trades, that could bring a substantial economic and ecological benefit to the US.
A new era for containerized shipping on the Eastern Seaboard was ushered in Sept. 7, 2017, when the 14,414-TEU CMA CGM Theodore Roosevelt sailed under the newly elevated Bayonne Bridge. The full benefit of the distribution of the 30-plus million TEU of annualized US import and export foreign trade can only be realized if the restrictive cabotage regime enacted in the Merchant Marine Act of 1920 is revisited.
“Repeal and Replace” is always contentious! An acceptable middle ground could be found to amend the Merchant Marine Act of 1920 to brighten the outlook of containerized liner shipping in the US along the following lines:
- Exempt the coastal movement of containers in US foreign trades within the contiguous 48 States from the restrictive cabotage regulations.
- Allow foreign-built ships to operate in the coastal trades. These ships would be in compliance of the MARPOL Protocol for emissions within emission control areas.
- These ships should be fully or partially manned by US crew, thereby expanding employment opportunities for US seafarers.
- The Jones Act carriers operating in the trades to Puerto Rico, Hawaii, Alaska, and other territories should subject themselves to a rate review board that includes representatives from the relevant state or territory, in lieu of continuing to enjoy the benefits of protectionism.
Over to you, Secretary Chao.