Free Republic
Browse · Search
News/Activism
Topics · Post Article

Skip to comments.

UPDATE 3-U.S. waives Jones Act to help get fuel to Northeast
Reuters ^ | November 2, 2012 | By Timothy Gardner and Ayesha Rascoe

Posted on 11/02/2012 3:17:44 PM PDT by Oldeconomybuyer

The U.S. government issued a rare waiver on Friday allowing foreign tankers in the Gulf of Mexico to supply the Northeast with fuel after Hurricane Sandy, but the extent of relief was uncertain since some ports in the region still lacked power.

The Department of Homeland Security's waiver of the Jones Act allows foreign-flagged vessels to begin shipping petroleum products, such as gasoline and diesel, from the Gulf of Mexico to Northeastern ports effective immediately. The shipments must leave the Gulf region by Nov. 13 and arrive in the Northeast by a week after.

With power still out at many ports and gasoline stations it was unclear how much fuel was needed immediately and how quickly it could get to customers.

DHS said it had received only one request from a company to waive the law. It did not identify the company.

The Merchant Marine Act of 1920, better known as the Jones Act, was created to support jobs in the maritime industry. It requires goods moved between U.S. ports to be carried by ships built domestically and staffed by U.S. crews.

(Excerpt) Read more at reuters.com ...


TOPICS: Business/Economy; Culture/Society; News/Current Events; Politics/Elections
KEYWORDS: sandy; unions

1 posted on 11/02/2012 3:17:46 PM PDT by Oldeconomybuyer
[ Post Reply | Private Reply | View Replies]

To: Oldeconomybuyer

LOL—if we have to waive the Jones Act every time there’s a crisis, don’t you think we should reexamine the Jones Act?


2 posted on 11/02/2012 3:19:17 PM PDT by 1rudeboy
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer

OK, if you are a terrorist group with the means to get a hold of a ship, doesn’t this seem like a ‘welcome mat’ to cause some serious destruction in downtown NYC??


3 posted on 11/02/2012 3:20:32 PM PDT by Fedupwithit ("Live Free or Die: Death is not the worst of evils" - Gen. John Stark)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Fedupwithit

As Rush said today, all this does is get the government out of the way so things will work more smoothly. This is a “get the government out of the way” case study playing out right before our eyes. And is indicative of everything that is wrong about big government ...


4 posted on 11/02/2012 3:29:36 PM PDT by Free America52 (The White guys are getting pissed off. We beat Hitler Hirohito and Krushchev. Obama will be easy.)
[ Post Reply | Private Reply | To 3 | View Replies]

To: 1rudeboy

Why can’t Biden deliver the full load?


5 posted on 11/02/2012 3:33:05 PM PDT by ImJustAnotherOkie (zerogottago)
[ Post Reply | Private Reply | To 2 | View Replies]

To: 1rudeboy
...don’t you think we should reexamine the Jones Act?

The Jones Act is just another union-@ss-kissing law that hurts the American economy and promotes foreign (rather than inter-State) trade - it should have been repealed long ago, but will probably be here forever, just like the idiotic mohair subsidies...

6 posted on 11/02/2012 3:39:21 PM PDT by Who is John Galt? ("We are not insensible that when liberty is in danger, the liberty of complaining is dangerous...")
[ Post Reply | Private Reply | To 2 | View Replies]

To: Who is John Galt?

The Jones Act is reminiscent of the old British Navigation Acts before the Revolutionary War.


7 posted on 11/02/2012 3:53:52 PM PDT by Timber Rattler (Just say NO! to RINOS and the GOP-E)
[ Post Reply | Private Reply | To 6 | View Replies]

To: Oldeconomybuyer
Did they ask the Unions for their permission?


8 posted on 11/02/2012 4:02:36 PM PDT by darkwing104 (Let's get dangerous)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
the Jones Act, was created to support jobs in the maritime industry

Very likely it actually eliminates jobs. Tip of the iceberg of how DC intervention in economic activity does not work.

9 posted on 11/02/2012 4:07:56 PM PDT by VRWC For Truth (Roberts has perverted the Constitution)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Who is John Galt?; 1rudeboy

All good points. Waiving the Jones Act is the equivalent of temporarily letting non-union workers do utility repairs in the region affected by Hurrican Sandy.


10 posted on 11/02/2012 4:08:48 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 6 | View Replies]

To: ImJustAnotherOkie

HUH? Last time I looked there were all kinds of refineries right there in NJ with big storage tanks.


11 posted on 11/02/2012 4:09:01 PM PDT by OldGMA
[ Post Reply | Private Reply | To 5 | View Replies]

To: VRWC For Truth
I'm not so sure that it "eliminates" jobs. More likely it distorts the labor market for different kinds of jobs.

I'm sure the U.S. railroad and trucking industries are among the biggest supporters of the Jones Act, for example.

12 posted on 11/02/2012 4:11:12 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 9 | View Replies]

To: OldGMA
The biggest refinery in northern New Jersey is the Bayway Refinery in Linden. My understanding is that they haven't had power there in several days, and the storm has disrupted the operation of a major pipeline that brings oil from the Gulf Coast up to this area as well.

This is why the fuel situation in southern New Jersey is somewhat better than in the north. That area gets its fuel from the Philadelphia area, which was also affected by the storm but not to the same extent as the NYC region because the storm was weakened after crossing over the mainland of New Jersey.

13 posted on 11/02/2012 4:14:21 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 11 | View Replies]

To: Oldeconomybuyer

http://en.wikipedia.org/wiki/Merchant_Marine_Act_of_1920


14 posted on 11/02/2012 4:17:14 PM PDT by fishtank (The denial of original sin is the root of liberalism.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Fedupwithit

Foreign vessels enter NY Harbor all the time already.

All this does is allow foreign vessels to carry cargo from somewhere else in the US to NY Harbor; the Jones Act normally prevents this - all shipping from a US port to another US port has to be in a US Flag (and US constructed) vessel.


15 posted on 11/02/2012 4:22:17 PM PDT by Strategerist
[ Post Reply | Private Reply | To 3 | View Replies]

To: Oldeconomybuyer

Didn’t Obama refuse to waive the Jones Act during the BP spill when foreign ships offered assistance with the clean up?


16 posted on 11/02/2012 4:27:35 PM PDT by Kandy Atz ("Were we directed from Washington when to sow and when to reap, we should soon want for bread.")
[ Post Reply | Private Reply | To 1 | View Replies]

To: Oldeconomybuyer
Some years ago I took a cruise to Alaska. Now the logical place to begin an Alaskan cruise is Seattle. However, the cruise ship was a Dutch liner. Because of the Jones Act, the line can't take passengers from Settle to Alaska. So it leaves from Vancouver, just across the Canadian border. All the shore activities associated with the cruise, such as refueling and re-supplying the ship, take place in Vancouver. If tourists arrive early, they spend money in Vancouver. In short, a lot of money that would logically be spent in Seattle is instead spent in Vancouver. All in the name of preserving jobs aboard ship for American sailors.

The Jones Act doesn't preserve American maritime jobs, or American shipbuilding jobs. Instead it enriches Canadians.

17 posted on 11/02/2012 4:50:41 PM PDT by JoeFromSidney ( New book: RESISTANCE TO TYRANNY. Buy from Amazon.)
[ Post Reply | Private Reply | To 1 | View Replies]

To: JoeFromSidney
I may be wrong about this, but I think the only impact the Jones Act has on the trip you described is that a foreign-flagged vessel that travels between Seattle and Alaska must first make a stop in Vancouver so that it's considered an international voyage rather than a domestic one.

Maybe that cruise line was simply running ships directly from Vancouver to Alaska because it had better berthing arrangements in Vancouver?

18 posted on 11/02/2012 5:37:26 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 17 | View Replies]

To: 1rudeboy

Stop making sense, globalist!


19 posted on 11/02/2012 5:49:55 PM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
[ Post Reply | Private Reply | To 2 | View Replies]

To: Oldeconomybuyer

SO we need big government in times of emergency to remove big government in order to start the recovery.

got it. NY Times won’t admit it. lol


20 posted on 11/02/2012 5:52:03 PM PDT by GeronL (http://asspos.blogspot.com)
[ Post Reply | Private Reply | To 1 | View Replies]

To: Who is John Galt?

Jones act repeal would kill the American shipping industry overnight. All Americans would be driven out by foreign companies with foreign made equipment. Jones Act is bad policy but would cause billions of dOllars of US investment to bE jEopardized if suddenly repealed. If done in a way that is phased and/or mindful of domestic interests, it could help spur some growth in the industry. That said, the effect of Jones Act is complex and has many American livelihoods tied to it. Mine included.


21 posted on 11/02/2012 5:53:56 PM PDT by sbMKE
[ Post Reply | Private Reply | To 6 | View Replies]

To: VRWC For Truth

Jones Act was created to ensure US shipbuilding capabilities and shipyard health for national security. A United States without shipbuilding capability was(is) vulnerable in time of need of military conflict.


22 posted on 11/02/2012 5:57:59 PM PDT by sbMKE
[ Post Reply | Private Reply | To 9 | View Replies]

To: Alberta's Child

The United States does not build cruise ships nor does it build ships for international trade because the foreign yards are significantly more cost effective. US shipyards are not competitive internationally and they only build for the USN and domestic cabotage.


23 posted on 11/02/2012 6:01:06 PM PDT by sbMKE
[ Post Reply | Private Reply | To 18 | View Replies]

To: sbMKE

I understand that. My point was that I don’t see how the Jones Act could have such strong influence on the berthing and routing decisions of a foreign cruise line that can easily meet the legal requirements of the Jones Act on a trip from Seattle to Alaska simply by making a port call in Vancouver on the way.


24 posted on 11/02/2012 6:19:12 PM PDT by Alberta's Child ("If you touch my junk, I'm gonna have you arrested.")
[ Post Reply | Private Reply | To 23 | View Replies]

To: Alberta's Child

Alsaka cruise ships sailing out of Seattle stop in Victoria for about 5-7 hours just to avoid the Jones Act problems, not that Victoria isn’t a beautiful city.


25 posted on 11/02/2012 8:32:10 PM PDT by SeaHawkFan
[ Post Reply | Private Reply | To 18 | View Replies]

To: sbMKE
...the effect of Jones Act is complex and has many American livelihoods tied to it...

The Jones Act also inhibits job creation in the US. Several Indian reservations located in coastal areas of Washington State, for example, contain world-class aggregate deposits. Those deposits will probably never be commercially developed, because the Jones Act would make operating costs for transport by barge or ship absolutely non-competitive. Comparable Canadian aggregate sources located just north of the US border can be (and have been) developed, because American ships and crews are not required to transport Canadian aggregate. End result - Canadian aggregate gets shipped all the way to California (and beyond), and the Canadians get the jobs and the income...

26 posted on 11/06/2012 8:34:57 PM PST by Who is John Galt? ("We are not insensible that when liberty is in danger, the liberty of complaining is dangerous...")
[ Post Reply | Private Reply | To 21 | View Replies]

Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.

Free Republic
Browse · Search
News/Activism
Topics · Post Article

FreeRepublic, LLC, PO BOX 9771, FRESNO, CA 93794
FreeRepublic.com is powered by software copyright 2000-2008 John Robinson