The U.S. maritime industry has been under assault recently by political opportunists looking to take advantage of Puerto Rico’s fiscal crisis and the tragedy involving the ship El Faro to advance their misguided agenda of weakening, or eliminating the Jones Act. That narrative needs to change in 2016, and I think it will.
The Jones Act is a federal statute that promotes and maintains a strong U.S. merchant marine. It requires that all goods transported by water between U.S. ports be carried on U.S.-flag ships constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and permanent residents.
While the act ensures we have a robust shipbuilding capability and skilled merchant mariners in the U.S. essential to our national defense, it has also created a commercial shipping market between the mainland and Puerto Rico, for example, that is highly competitive, customized and dedicated. It is because of this competition and the long-standing rules of engagement spelled out in the Jones Act that we, along with a competitor, have had the confidence to make major investments in new ships.
Critics say the U.S.-flag fleet is aged, but today, some of the most modern ships in the world, including those that are LNG powered and LNG ready, are being built right here in the U.S. for use in the Jones Act trades.
Critics say the Jones Act contributes to higher shipping costs and it is blindly accepted and conveyed to the public by the news media without any basis in fact. I know, for example, that our company’s shipping rates from the U.S. to Puerto Rico are less than they are from the U.S. to any other Caribbean destination that we serve with foreign ships.
The misinformation needs to be challenged. The law needs to be protected.