AMP Denounces Need for Repeal of Jones Act

In a reaction to the eventual repeal of the Jones Act announced by the Senator John McCain during a speech  at the Heritage Foundation, a conservative think tank, the American Maritime Partnership (AMP) said that the repeal would sacrifice the U.S. national security for less than a penny a gallon.

According to Tom Allegretti, Chairman of AMP, the Jones Act enjoys “rock solid support from lawmakers in Congress and the Administration because leaders from both sides of the aisle understand this law is vital to America’s national, homeland and economic security.” 

Referring to the claim that the Jones Act is impeding crude oil exports and must be addressed along with any action on the U.S. crude oil export ban, AMP said that refiners are working at record levels paving way for a surge of domestic supply of cheaper oil from the imported one.

“It is troubling that U.S. refiners pushing for changes to the Jones Act as part of the crude oil export debate are putting their vested financial interests over the national and homeland security of our nation. The two issues are not connected. American maritime is flourishing and stronger than ever. In fact, the most modern vessels in the world are being built in record numbers in U.S. shipyards all around the country, the industry is responding to the changing energy market caused by the shale oil revolution, and the U.S. maritime industry is growing as a result,” said Allegretti.

The AMP denied claims that shipping by Jones Act vessels is three times more expensive than foreign vessels.

 “Foreign-flag ships are not subject to U.S. taxation, U.S. immigration, U.S. safety and other U.S. laws. Contrasting U.S.-flag Jones Act vessels and foreign-flag vessels is an “apples to oranges” comparison. Foreign-flag vessels operating in the domestic trades would be subject to the same laws as U.S.-flag vessels, drastically affecting any perceived cost savings,” AMP explained.

Speaking of the lack of U.S-flag vessels to meet the demands of the nation’s energy boom, APM said that last year, the construction of inland tank barges reached an all-time high with 336 new vessels delivered, totaling more than 8.2 million barrels of capacity, and some 26 large tankers and articulated-tank barges, including options, with another combined 7.6 million barrels of capacity, are currently under contract or construction in U.S. shipyards.