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/ Wednesday, May 15, 2019
FROM PAGE 1 indicated. “The Jones Act is a burden on our economy, lowers our competitiveness and dampens job creation.” “We want to purchase LNG from the U.S. market, but the Jones Act makes prices high. Instead, we have to buy from Trinidad & Tobago, Estonia and Russia,” Rivera added. “The U.S. public policy is to promote energy independence and Puerto Rico is part of the United States.” The Jones Act, which is included in the U.S. Merchant Marine Act of 1920, requires that all cargo shipments between U.S. ports to be conducted on U.S.-flagged, U.S.-built and U.S.crewed ships. The Jones Act applies to Puerto Rico, Hawaii and Alaska, but the U.S. Virgin Islands is exempt. Critics charge that U.S.-built and U.S.-crewed ships are more expensive than international ships, resulting in higher prices for consumers. For example, they state that salaries for U.S. crews are significantly higher than those of their international counterparts. Defenders argue that the Jones Act has had little effect on the local The price of shipping cargo to Puerto Rico is $568.9 million higher, and prices are $1.1 billion higher than they economy and that Jones Act carriers are providing would be without the Jones Act limitations, according a study by John Dunham & Associates.> The Weekly Journal safe and quality service to the island. The last time the federal government granted jobs in the energy sector as well as save Americans the United States become dependent on foreign a waiver was after Hurricane Maria devastated money. countries to transport energy and critical products Puerto Rico in Sept. 2017. President Trump issued “Furthermore, and perhaps most notably, the within the United States. The Jones Act is essential a 10-day waiver, which resulted in 10 additional waiver would not have cost one single job in the to preserve our domestic shipping industry and cargo ships bring much-need relief supplies to the U.S. maritime sector. No U.S.-flag LNG carriers protect our national and economic security,” island. would have been put out by the waiver as none Cassidy said afterwards. Rivera highlighted the need for Puerto Rico exist, nor are any being built by the few remaining A long-term waiver to receive a 10-year would have threatened major U.S. shipyards,” he said. Jones Act waiver on thousands of maritime LNG shipments to the jobs in Louisiana, Competing Studies island. Northeastern echoed fellow U.S. Sen. For years, a number of studies have argued the states, such as John Neely Kennedy case for and against the Jones Act. Massachusetts, were (R-La.), saying that the A 2018 study commissioned by the American also clamoring for the Jones Act supports Maritime Partnership concluded that the Jones Act waiver. Opponents 71,000 jobs in his has had a zero percent impact on consumers in of the cabotage law state. Puerto Rico. argue that there are “Louisiana is the “The retail prices of goods in Puerto Rico are no Jones Act-compliant greatest beneficiary essentially the same as on the mainland, and ships that can of the Jones Act with freight rates for shipments between the mainland transport LNG from thousands of jobs and Puerto Rico are very similar or lower than the Gulf Coast to New that depend on it. Our rates for shipping between CONUS [continental — Anne Krueger, senior England, so many gas maritime industry is research professor of International suppliers in the region part of the lifeblood Economics, Johns Hopkins University have had to buy the of Louisiana and the product from Russia. Gulf Coast economy,”
Studies show that it costs about three times more to operate Jones Act ships than international ones and building Jones Act ships in the U.S. costs six times more than doing so internationally
Puerto Rico Loses Latest Round
However, calls for the LNG waiver were apparently to no avail as the powerful shipbuilding industry and their allies in Gulf Coast states reportedly convinced President Trump to scuttle the idea. Media reports had indicated Trump was amenable to the waiver, but after meeting with various U.S. senators and representatives, he was convinced otherwise. U.S. Sen. Bill Cassidy, (R-La.), who attended the meeting with Trump, lobbied on behalf of Louisiana shipbuilders and maritime workers. “We cannot let
said Sen. Kennedy. “It would be foolish to push aside those jobs in favor of foreign made and foreign crewed ships,” Kennedy said. No one said it would be easy to reform the Jones Act, said Colin Grabow, a policy analyst at the Cato Institute. “If granted, the Jones Act waiver would have allowed Americans in New England and Puerto Rico to obtain bulk amounts of cheap LNG shipped in from other parts of the United States. Such a move would bolster the number of well-paid
CONFLICTING DATA ABOUT THE