Tuesday, April 07, 2020
Hawai'i Free Press

Current Articles | Archives

Saturday, March 07, 2015
The Jones Act does not enhance our defense
By Selected News Articles @ 12:02 AM :: 3078 Views :: Jones Act

The Jones Act does not enhance our defense

by Donald B Frost

It is illuminating to compare the Mises Institute critique of the Jones Act published on March 3rd to the pro Jones Act testimony before the U.S. House Subcommittee on Coast Guard and Maritime Transportation on February 25th. I would ask rhetorically: How many Congressmen and testifiers in that hearing invoked national defense as a reason not to change anything with respect to the Jones Act? They ALL did, of course.

Three Mises points stand out to me – all dealing with the national defense argument in support of the Jones Act.

The first Mises’ point is "only one of the shipyards that builds the Navy's primary vessels also builds large commercial shipping vessels." This is a reference to General Dynamics’ San Diego shipbuilding yard NASSCO. I have made that point before but only in passing while I was trying to quantify the impact if the Build American requirement was removed (i.e., possible lost shipbuilding jobs). However, I like the way Mises stated the physical nexus between major commercial and naval ship construction: a single shipbuilding yard.

Looking further into the shipbuilding industrial base, the website of that major U.S. shipbuilding yard constructing large commercial ships, Aker Philadelphia Shipyard (AKER), claimed 1,400 jobs in the yard a few months ago. It was 1,200 when I looked two weeks ago. In his testimony before the House Committee last week the Maritime Administrator placed the number at 1,100.

These numbers are representative of employment levels the three major shipbuilding yards in the U.S. constructing commercial ships. Collectively all major U.S. commercial shipbuilding employment is not great in comparison to the negative impact of the Jones Act’s domestic build requirement on the larger economy that suppresses employment nationwide.

The second Mises’ point is the U.S. Department of Defense (DoD) quote "Unfortunately, very few commercial ships WITH HIGH MILITARY VALUE have been constructed in US shipyards in the last twenty years." [emphasis added] This statement speaks for itself.

The third Mises’ point amplifies the second and deals with the logistics for the first Gulf War and brings us up to date, "In 2014 less than a third of the Maritime Administration's Ready Reserve Fleet, which transports unit and combat support equipment and resupply, were American built."

In addition and not mentioned by Mises the U.S. Military relies upon the foreign-built U.S. flag international trade fleet of 89 ships as the backbone of their sealift capacity to resupply overseas operations.

Let me also tie this to the Combat Logistics part of the Office of the Chief of Naval Operations and their exploring the "dual use" of Roll-on Roll-off (Ro/Ro) ships as part of the America’s Marine Highway (AMH) program in 2012-13 timeframe seeking ships that would be both militarily and commercially useful.

Although the U.S. Maritime Administration (MARAD) spent a lot of money (mostly funded by DoD) studying dual use Ro/Ro designs for the AMH Program, it ultimately determined a military and commercially useful ship is not workable in the current environment. References are available.

In comparison to the Government AMH effort, Alternative Marine Technologies LLC (AMTECH) proposed a coastal Ro/Ro design and operating pro forma, known as “Coastal Connect.” Their economic analysis indicated the design and operating mode would be commercially successful if deployed. However, the Coastal Connect model was based on a foreign build ship for commercial purposes only, and would not prove viable at U.S. ship construction prices.

As the great 18th Century man of letters Samuel Johnson (a.k.a. Doctor Johnson) famously said “Patriotism is the last refuge of a scoundrel” in reference to what he termed “false patriotism,” that remark is certainly apropos in today’s debate over the Jones Act.

---30---

Donald B. Frost is a maritime arbitrator and expert witness in charter party disputes, and a maritime analyst and journalist based in Stamford, Connecticut. He is a USCG licensed deck officer (second mate) with a many decades long commercial management career working with ship owners, shippers (i.e., cargo owners) and merchant traders. His experience includes logistics planning and consulting covering all surface modes of transport and bulk materials handling.

Mises Institute: Protect American Shipping? The Jones Act Record of Failure

VIDEO LINK: Jones Act discussed between the 1 hour and 1 hour 25 minutes marks.

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

808 Silent Majority

808 State Update AM940

ABCDEFG Blog

ACA Signups Hawaii

ACCE

ALEC

Alliance Defending Freedom

Aloha Life Advocates

Aloha Pregnancy Care Center

American Council of Trustees and Alumni

American Mothers of Hawaii

AMVETS-Hawaii

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Audit The Rail

Ballotpedia Hawaii

Better Hawaii 

Blaisdell Memorial Project

Broken Trust 

Build More Hawaiian Homes Working Group

CAFR Hawaii

Castaway Conservative

Children's Alliance Hawaii

Children's Rights Institute

ChinaTownWatch.com

Christian Homeschoolers of Hawaii

Citizens for Recall

Cliff Slater's Second Opinion

Coffee Break

CSIS Pacific Forum

DAR Hawaii

DeedySupport.com

DVids Hawaii

E Hana Kakou Kelii Akina

E Māua Ola i Moku o Keawe

Farmers For Choice Hawaii

FIRE

Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Get Off Your Butts!

God, Freedom, America

Grassroot Institute

Habele.org

Hawaii Aganst Assisted Suicide

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crime Victims' Rights

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defending Marriage

Hawaii Defense Foundation

Hawaii Families for Educational Choice

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Firearm Community

Hawaii Fishermen's Alliance

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii Meth Project

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Right to Life -- Big Island

Hawaii Right to Life -- Oahu

Hawaii Shield Law Coalition

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation

HI Coalition Against Legalized Gambling

HIEC.Coop 

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Homeless Crisis

Honolulu Navy League

Honolulu Traffic

Horns of Jericho Blog

House Minority Blog

House Republican Caucus YouTube

HPACC

Hump Day Report

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes

KeyWiki

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

MentalIllnessPolicy.org

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii

NARTH

Natatorium.org

National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii

Obookiah

OHA Lies

Opt Out Today

OurFutureHawaii.com

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons 

Pro-GMO Hawaii

P.U.E.O.

RailRipoff.com

Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

SenatorFong.com

SIFE Remington

SIFE W. Oahu 

Sink the Jones Act

Smart About Marijuana--Hawaii

St Marianne Cope

State Budget Solutions Hawaii

State Policy Network

Statehood for Guam

Tax Foundation of Hawaii

The Harriet Tubman Agenda

The Long War Journal

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Truth About Trade & Technology - Hawaii

UCC Truths

Union Members Know Your Rights

US Tax Foundation Hawaii Info

Valor in the Pacific

VAREP Honolulu

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii

Yes2TMT