Connecticut Asks Congress to ‘Rethink the Jones Act’

The century-old law has driven up prices, jammed roads and shriveled the U.S. maritime industry

By Bryce Chinault and Andrew Fowler. Mr. Chinault is director of state government affairs at Abundance Institute. Mr. Fowler is communications specialist at Yankee Institute. Excerpts:

"Officially known as the Merchant Marine Act of 1920, the Jones Act blocks foreign-flagged ships from transporting goods between U.S. ports. The law has historically had many detractors from both sides of the aisle. Republican Sen. John McCain was against it. Hawaii Democratic Rep. Ed Case has blamed the law for “artificially inflating the cost of shipping goods” to his state. Rep. Alexandria Ocasio-Cortez called for a “one-year waiver from the Jones Act for Puerto Rico” after Hurricane Fiona hit the island in 2022."

"The Jones Act has powerful supporters. Most of them represent constituencies that benefit financially in some way from the economic distortions the law creates. Groups such as the AFL-CIO, the Marine Engineers Beneficial Association and American Maritime Partnerships have spent heavily to preserve the Jones Act. Organizations like the Transportation Institute argue it is “critical” for national security and domestic economic stability, ensuring “reliable domestic water transportation service” and employment for hundreds of thousands of U.S. citizens."

"In addition to driving up gasoline prices, the Jones Act increases the volume of heavy traffic on Connecticut highways by forcing goods to be delivered via long-haul vehicles. The law also makes replacing ferries—like those that cross Long Island Sound from Connecticut—difficult since new ships are required to be constructed in the U.S. American-built ships are “far less numerous and far less competitive than their international counterparts,” according to the Cato Institute."

"by requiring every ship transporting goods between U.S. ports to be built, owned and largely crewed by U.S. citizens, the Jones Act limits competition. This has led to an aging fleet of U.S.-compliant ships, with fewer than 100 vessels left in operation, down from more than 250 in 1980. Contrary to the legislation’s original intent, there isn’t a single U.S.-flagged, U.S.-built LNG carrier sailing today."

"the Jones Act means Americans “can’t realize many benefits arising from this incredible production.” Even progressive outlets like Vox and Slate concede that the law has stifled Puerto Rico’s long-term economic growth."