"During a 2018 New England cold snap, energy companies were forced to import liquified natural gas (LNG) rather than getting it from the U.S. Gulf Coast, as no LNG tankers existed that met the requirements of the Jones Act."
Meanwhile, there are LNG export terminals on the East Coast at Cove Point, Maryland and Elba Island, Georgia.
"A foreign ship may deliver goods from overseas to one American port, but it cannot then carry those same goods to another American port; the cargo must disembark and wait for an approved ride."
"If not for the Jones Act, domestic containers could be shipped between U.S. coastal ports on existing services provided by international carriers. Foreign containerships carrying U.S. imports and exports already sail frequently between U.S. ports, providing an almost continuous conveyor belt of vessel space along each coast. These ships typically call at three or four ports along a coastal region, and since they generally unload a good portion of the ship’s cargo at the first port call, they would have empty space to carry domestic containers to the other U.S. ports on their schedule. However, because they are not in compliance with the Jones Act, these vessels are not allowed to pick up shipments in one U.S. port and unload them at another."
This would seem to be an opportunity for someone in the current administration to deal with one of the many government-caused facts leading to "unaffordability!"
Of course, being pragmatists, we don't know how the administration's "interests" actually ally - let alone whose congressional "Jones" might be getting circumcised by repeal of the Jones Act?
Perhaps someone with a contact in the administration will read your article and potentially start the "reform" ball to roll? Maybe an Executive Order, although adding more EO's as opposed to legislative repeal just represents more easily reversed "pragmatism."
Interesting piece on what is certain to be but one of a litany of unjust laws violating individual rights that also unnecessarily drive-up costs! Yo, Trump! "Affordability!"
Great topic, Anders. There's another angle to this kind of crippling regulation: new businesses and new technologies that do not exist, but would exist if not for these arbitrary restrictions. For example, the waterways of the Mississippi River and other associated waterways, including the Great Lakes and the intracoastal sea lanes, are all underutilized forms of transportation because they have been priced out by the Jones Act. What a boon to economic development its repeal would be!
Wow, I had never heard of this. Yet its influence is obviously substantial. As bad as so many of the laws are that restrict our rights, I believe it is something like this that I would start with when the 'Great Repeal' happens as it ultimately must if America is to ever thrive again.
"During a 2018 New England cold snap, energy companies were forced to import liquified natural gas (LNG) rather than getting it from the U.S. Gulf Coast, as no LNG tankers existed that met the requirements of the Jones Act."
This still happens. In fact, an LNG tanker just left Boston yesterday after unloading LNG from Trinidad and Tobago: https://www.marinetraffic.com/en/ais/details/ships/shipid:371415
Meanwhile, there are LNG export terminals on the East Coast at Cove Point, Maryland and Elba Island, Georgia.
"A foreign ship may deliver goods from overseas to one American port, but it cannot then carry those same goods to another American port; the cargo must disembark and wait for an approved ride."
To clarify, foreign vessels can visit multiple US ports. What they cannot do is pick up cargo in one US port and drop it off in another. This is a big opportunity cost, as pointed out in a CRS report: https://www.everycrsreport.com/files/20110114_R41590_f5da5b075b1b8413e2e8860b5f95d3de31210d97.pdf
"If not for the Jones Act, domestic containers could be shipped between U.S. coastal ports on existing services provided by international carriers. Foreign containerships carrying U.S. imports and exports already sail frequently between U.S. ports, providing an almost continuous conveyor belt of vessel space along each coast. These ships typically call at three or four ports along a coastal region, and since they generally unload a good portion of the ship’s cargo at the first port call, they would have empty space to carry domestic containers to the other U.S. ports on their schedule. However, because they are not in compliance with the Jones Act, these vessels are not allowed to pick up shipments in one U.S. port and unload them at another."
Colin, thanks for the additional context.
This would seem to be an opportunity for someone in the current administration to deal with one of the many government-caused facts leading to "unaffordability!"
Of course, being pragmatists, we don't know how the administration's "interests" actually ally - let alone whose congressional "Jones" might be getting circumcised by repeal of the Jones Act?
Perhaps someone with a contact in the administration will read your article and potentially start the "reform" ball to roll? Maybe an Executive Order, although adding more EO's as opposed to legislative repeal just represents more easily reversed "pragmatism."
Interesting piece on what is certain to be but one of a litany of unjust laws violating individual rights that also unnecessarily drive-up costs! Yo, Trump! "Affordability!"
Great topic, Anders. There's another angle to this kind of crippling regulation: new businesses and new technologies that do not exist, but would exist if not for these arbitrary restrictions. For example, the waterways of the Mississippi River and other associated waterways, including the Great Lakes and the intracoastal sea lanes, are all underutilized forms of transportation because they have been priced out by the Jones Act. What a boon to economic development its repeal would be!
Great point, Jim.
Wow, I had never heard of this. Yet its influence is obviously substantial. As bad as so many of the laws are that restrict our rights, I believe it is something like this that I would start with when the 'Great Repeal' happens as it ultimately must if America is to ever thrive again.