Jones Act waiver period disproves China fearmongering, shows benefits of reform

Defenders of the federal maritime law known as the Jones Act contend that the threat of Chinese expansion is a reason to keep its protectionist regulations in place. If the Jones Act were pared back, they say, Chinese vessels would take over U.S. shipping lanes.

Unfortunately for them, this argument does not hold water — in fact, recent events strongly indicate that reforming the Jones Act could benefit Americans across the country.

The 1920 law mandates that ships delivering goods from one U.S. point to another be flagged and built in the U.S. and mostly owned and crewed by Americans. But the law has been suspended for shipments of fuel and fertilizer since March 17. 

President Trump initially waived the law for 60 days, citing national security reasons related to the conflict in Iran. He later extended the waiver for another 90 days. On Aug. 10, he extended it for yet another 90 days, although this time with more conditions and a more limited list of fuels and fertilizers that qualify for the waiver.

Allowing certain shipments to move freely around the country has produced real-world data showing how the Jones Act restrictions have been limiting U.S. shipping patterns. 

As of Sept. 17, 200 ships have used the waiver to complete 259 voyages delivering gas, oil and other commodities within the U.S. — trips that would not have happened without it.

Perhaps........

© The Hill