Sunday, April 21, 2024
Hawai'i Free Press

Current Articles | Archives

Wednesday, December 13, 2017
The Jones Act costs all Americans too much
By Michael Hansen @ 5:20 PM :: 3904 Views :: Jones Act

Bloomberg editorial finds Jones Act too expensive

by Michael Hansen, Hawaii Shippers Council, December 12, 2017

Bloomberg published from their editorial board, “The Jones Act costs all Americans too much,” on December 12, 2017, noting in their subtitle, “Hurricanes or no hurricanes, this ridiculous policy needs a rethink.”

In their piece, the Bloomberg editorial board notes the recent and widely publicized issues with delivering hurricane relief within the constraints of the Jones Act, and expanded that concern to the effects of the Jones Act on the national economy. They conclude stating Congress, “should . . . . . consider a permanent exemption [from the Jones Act] for the whole country.”

Key excerpts from Bloomberg:

The act hits all U.S. consumers with higher shipping bills.

The law's advocates counter that since no foreign-flag ships have been allowed to carry coastal U.S. cargo, you can't compare costs on an apples-to-apples basis. This is true, but it ignores straightforward evidence and examples compiled by the U.S. International Trade Commission, the U.S. Government Accountability Office, the Congressional Research Service, the Federal Reserve Bank of New York, and disgruntled communities from San Juan to Honolulu.

Consider the impact on U.S. energy markets. Shipping oil from Texas to East Coast refineries on a U.S.-flag ship, for instance, costs several times more than sending it further (to Canada) on a foreign one – so those refineries get their oil from Europe. The U.S. has cheap and plentiful natural gas, but no Jones Act-qualified carriers – so Massachusetts imports LNG from Trinidad and Tobago, while U.S. gas is sent overseas on cheaper foreign-flag ships. When pipeline breaches disrupt the national gasoline supply, the small fleet of Jones Act tankers means a bigger spike at the pumps.

Maybe you care more about cutting greenhouse-gas emissions than about cheaper heating oil and gasoline. If so, here’s some bad news. Coastal shipping is more carbon-efficient than trucks and trains -- but the tonnage it carries has steadily declined, leading to dirtier air and more congested roads.

And this is to say nothing of all the other economic distortions the act creates in tourism, agricultural trade and construction. The U.S. International Trade Commission once labeled the act the country's second costliest form of protectionism. Recent research estimates nearly $2 billion worth of savings in shipping costs if the law were repealed.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii