Posted on 11/02/2012 3:17:44 PM PDT by Oldeconomybuyer
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 Jones Act is bad policy but would cause billions of dOllars of US investment to bE jEopardized if suddenly repealed.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.
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.
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.
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.
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.
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...
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