The Jones Act is a federal law that has divided the people of the USA. Some feel it is still required, while others believe it is doing more harm than good, so what is the truth?
Let’s find out!
Jones Act regulates cabotage, maritime commerce in the U.S. coastal waters and between domestic ports, and other aspects of the maritime industry.
What is the Jones Act?
The Jones Act requires goods shipped between any two United States ports to be transported on U.S.-built, U.S.-owned, and U.S.-crewed ships.
Understanding the Jones Act
The Merchant Marine Act of 1920, or the Jones Act, was enacted by then-President Woodrow Wilson; it aimed to revitalize the U.S. shipping industry after World War I
The Jones Act supports American shipbuilding & the Merchant Marine. It helps to sustain
650,000 American jobs
, resulting in about $150 billion in economic benefits each year
The Jones Act is crucial for the National Security of America as the Merchant Marine supports the US Navy during the war and national emergencies.
The Jones Act upholds American protectionism; it protects the domestic maritime industry of the USA from foreign countries like China.
The Jones Act provisions result in higher transportation costs borne by American consumers, thereby limiting domestic ocean trade in the U.S.
Higher shipping costs push freights from ships to other modes of transportation like trucks, rail, etc., which increases infrastructure & maintenance costs & is also harmful to the environment
The Jones Act negatively affects the economy of islands like Puerto Rico as it raises transportation costs from & to the US mainland compared to other states & isolates the island in terms of trade
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