U.S. Maritime Industry Stakeholders Rally Behind ‘Strong’ Jones Act

Numerous U.S. maritime trade stakeholders rallied collectively in a powerful present of help for the Jones Act throughout an trade occasion in New York on Wednesday, sending a transparent message to opponents that any try repeal the 95-year-old regulation is severely misguided and never in one of the best curiosity of the American individuals.

In his keynote presentation kicking off the third annual Tradewinds Jones Act Shipping Forum, U.S. Maritime Administrator Paul “Chip” Jaenichen supplied what some are saying are his strongest phrases but in help of the Jones Act, a cabotage regulation that requires items shipped between U.S. ports be transported on U.S.-built, U.S.-owned and U.S.-crewed vessels.

Special focus was given to Hawaii and particularly Puerto Rico, whose Governor, within the midst of an insurmountable debt disaster, is searching for a five-year waiver from the U.S. Government that may exempt the Commonwealth from the regulation.

“Pilgrims did not land at Plymouth Rock, Betsy Ross did not sew or design the United States flag and the Jones Act is not responsible for the cost of gasoline, the cost of groceries in Hawaii, the debt in Puerto Rico or snowy roads in New Jersey,” Jaenichen said in his keynote address.

“These are all tall tales. They are embellishments. They are outright falsehoods,” he stated.

Perhaps most notable, Jaenichen was very clear that the Jones Act will not be about defending home commerce, fairly the explanation the Jones Act exists immediately, above all else, is to help nationwide protection.

Echoing Jaenichen’s feedback, Tom Allegretti, Chairman of the American Maritime Partnership (AMP), addressed attendees concerning the overwhelming help for the Jones Act in Congress. In his remarks, Allegretti stated that the robust help is as a result of trade’s longstanding optimistic affect on nationwide, financial and homeland safety, noting that any try to incorporate an modification of the Jones Act in pending laws is a “vote subtractor” that would damage Congressional progress.

The Jones Act has been criticized this previous month by opponents of the regulation who’re actively working to tie the debt disaster in Puerto Rico to the maritime trade, and the Jones Act specifically. Allegretti went on to stipulate why any connection between the Jones Act and a debt reduction bundle in Congress would really damage greater than it helps.

“Some in Puerto Rico have suggested that a Jones Act exemption be included in the legislative package under the erroneous theory that the Jones Act is bad for Puerto Rico. But here’s the kicker: If Congress did that – include an anti-Jones Act amendment in the package – the chances of the overall package getting enacted into law would diminish. That’s because the presence of an anti-Jones Act amendment would reduce or subtract the number of Members of Congress who would vote for the overall bill. So Puerto Ricans would be undermining – and maybe even sabotaging – their own assistance package by including an anti-Jones Act amendment in it,” stated Allegretti.

Congressional help was obvious earlier this 12 months when Senator John McCain filed a Senate ground modification to repeal the Jones Act, which was overwhelmingly disputed by Members in each Chambers of Congress. “Ultimately, several weeks later, facing almost certain defeat, [Sen. McCain] withdrew his amendment and did not offer it. We believe his amendment would have failed overwhelmingly. Even Sen. McCain jokingly admitted that his strategy for repealing the Jones Act was to ‘pray to the patron saint of lost causes.’ In other words, there is no appetite in Congress to change the Jones Act,” stated Allegretti.

In truth, help in Congress for the Jones Act couldn’t be any stronger, in keeping with the AMP. Last December, Congress enacted the strongest endorsement of the Jones Act in historical past in a resolutions included within the National Defense Authorization Act of 2014.

While internet hosting Wednesday’s “Innovation and Opportunities” panel specializing in prospects within the Jones Act shipbuilding market, Shipbuilders Council of America (SCA) President Matthew Paxton hailed the innovation within the U.S. home shipbuilding and restore trade and famous the commercial base as a vital factor of America’s nationwide, homeland and financial safety.

Kicking off the panel, Paxton talked about present improvements throughout the trade, saying, “This is an exciting time for the nation’s shipbuilding industry because new LNG-powered vessels under construction are on the cutting edge of maritime innovation. U.S. shipbuilders are driving innovation and investing right here in America with world leading LNG technology.”

Paxton after all was referring to the latest launch of the world’s first (and second) LNG-powered containerships being constructed for Tote Maritime on the NASSCO shipyard in San Diego.

According to the American Maritime Partnership, the home maritime trade is made up of greater than 40,000 American vessels and sustains almost 500,000 American jobs, $28.95 billion in labor compensation, and greater than $92.5 billion in annual financial output. In addition, for each one shipyard job, 5 extra are created and the trade contributes over $6.4 billion in GDP to the U.S. financial system yearly, in keeping with MARAD.

If there was one take away from the occasion it was this: the Jones Act as we all know it isn’t going wherever.