The Impact of Modifying Jones Act on US Domestic Shipping : Research Project Capsule
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The Impact of Modifying Jones Act on US Domestic Shipping : Research Project Capsule

  • 2012-09-01

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  • English

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      Research project capsule.
    • NTL Classification:
      NTL-FREIGHT-Freight Planning and Policy ; NTL-MARINE/WATERWAYS TRANSPORTATION-Marine Laws and Regulations ; NTL-PLANNING AND POLICY-Marine Planning and Policy ; NTL-PLANNING AND POLICY-Freight Planning and Policy ;
    • Abstract:
      The Jones Act, or Section 27 of the Merchant Marine Act of 1920, relates to goods and passengers transported by water between US ports, hereafter referred to as domestic shipping or cabotage. The Jones Act specifi cally mandates that all domestic shipping shall be exclusively provided by US-fl ag ships: i.e., defi ned as ships fulfi lling four stipulations: (a) owned by US citizens; (b) crewed by US citizens or permanent residents; (c) constructed by US shipyards; and (d) operated under US laws and regulations. The Jones Act has four provisions related to ownership, construction, regulations, and labor. This study is not concerned with the repeal of Jones Act, which has been exhaustively studied, but with modifying some of its provisions that we deem more realistic. The fi rst modifi cation would allow the re-fl agging of foreign-built ships. The second modifi cation is adjusting the size and composition of US crews serving on re-fl agged ships according to the technical requirements of the ship, and in line with foreign crews on these ships prior to the re-fl agging. Altogether, these two modifi cations are expected to substantially reduce the capital and operating costs of US-fl agged ships.
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