Jones Act Enjoys Rock Solid Support, Says AMP

The American Maritime Partnership (AMP), the voice of the domestic American maritime industry, issued a statement regarding a recent Reuters article on the Jones Act that raised several issues regarding its effect on oil exports.

According to Reuters, “crude producers and refiners are exploring ways to get around the law (Jones Act) that makes it three times more expensive to ship by water between U.S. ports than to sail to a foreign port.”

The article also says that refiners have been faced with higher costs as day rates “doubled to more than $100,000 over the past five years as shale oil production has boomed.”

“There is zero pressure on the Jones Act in Congress. In fact, just the opposite — it enjoys rock solid support from both lawmakers and the Administration.

Leaders from both sides of the aisle are showing their strong support for this law critical to America’s national and economic security.

It is an exciting time to be a part of this dynamic industry, and the nation is benefiting from the service we provide,” the Partnership said referring to Reuters reporting on the need to re-examine the Act.

AMP added that the domestic maritime industry is flourishing and stronger than ever.

“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 and employing American workers as a result,” AMP said.

Speaking of the claim that shipping by Jones Act vessels is three times more expensive than that by foreign vessels, the Partnership said:

“ This is an apples to oranges comparison. U.S.-flag ships operating in domestic trades are subject to all U.S. laws. Foreign flag ships operate in international trades are subject to the lax laws of flag of convenience countries like Liberia and Panama.

The suggestion that a foreign flag ship could operate in the domestic trade without being subject to U.S. laws is a farce; it is highly unlikely Congress or the Executive Branch will permit foreign ships to operate in wholly domestic commerce without being subject to U.S. taxation, U.S. immigration, and a host of other U.S. laws. The Government Accountability Office (GAO) has repeatedly debunked this myth,” the statement reads.

The Jones Act, a century-old law, prohibits any foreign built or foreign flagged vessel from engaging in coastwise trade within the United States.

The “coastwise trade” term essentially applies to a voyage that beginning at any point within the United States and delivering a type of commercial cargo to any other point within the United States.

[mappress]
World , August 22, 2014