Posted on Oct 5, 2017
Puerto Rico's 'temporary' waiver from the Jones Act should be permanent
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I didn't expect such lucidity from anything out of Washington, but this seems to make sense. 1SG (Join to see)
Puerto Rico's 'temporary' waiver from the Jones Act should be permanent
Posted from washingtonexaminer.com
Puerto Rico
Natural Disaster
Congress
Posted 7 y ago
Responses: 3
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Correct me if I am wrong, but doesn't PR have to be a state in order to get out from the Jones act? Assuming the act isn't appealed or rewritten to exclude Puerto Rico.
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Here's a counterpoint:
https://transportationinstitute.org/jones-act/# [login to see] 36-6c40e80c-daf0
https://transportationinstitute.org/jones-act/# [login to see] 36-6c40e80c-daf0
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1SG (Join to see)
Thanks for the post.
I have to ask, though -- just how much does the Jones Act requirements impact the Puerto Rico economy?
If Puerto Rico receives a permanent waiver from the Jones Act, what not the USVI?
What about Hawaii?
How can non-US shipping companies (for example, Maersk) be so much cheaper than a US-flagged shipping company?
Why is the operating cost differential between US-flagged vessels and foreign-flagged vessels so vastly different?
How can foreign flagged maritime carriers be cheaper than Puerto Rico-owned and operated carriers?
So....rather than bringing, say, oil to port in Puerto Rico on an American flagged, probably double-hulled tanker and barge, the waivers can allow oil to be brought in by a rusting single-hulled tanker flagged by Venezuela or Cuba?
Thanks for the post.
I have to ask, though -- just how much does the Jones Act requirements impact the Puerto Rico economy?
If Puerto Rico receives a permanent waiver from the Jones Act, what not the USVI?
What about Hawaii?
How can non-US shipping companies (for example, Maersk) be so much cheaper than a US-flagged shipping company?
Why is the operating cost differential between US-flagged vessels and foreign-flagged vessels so vastly different?
How can foreign flagged maritime carriers be cheaper than Puerto Rico-owned and operated carriers?
So....rather than bringing, say, oil to port in Puerto Rico on an American flagged, probably double-hulled tanker and barge, the waivers can allow oil to be brought in by a rusting single-hulled tanker flagged by Venezuela or Cuba?
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LTC Marc King
To address the cost question it is thought that the Jones act sucks about $29B out of the PR economy through higher prices for all commodities entering the island. A like car will cost $6K more in PR because of increased non competitive shipping costs. There are only 6 US Flag Carriers in business. Their costs are higher because of over regulation by the USCG and union driven wage scales for Merchant Marine officers and crewmen. If you have ever managed a USG contract that required shipping on a US Flag bottom you would have a clear picture of the impact. When shipping costs are in the contract and not paid by the government prices to the government must be increased to cover the cost. A 40x40 container from Charleston to a port in Europe might cost $3k commercial and $9k on US Flag.
This law made sense in 1917 to help us grow a merchant marine. We hit that zenith in WWII and since then we have regulated our merchant Marine out of existence. This is a law that needs to be repealed and NOT replaced.
This law made sense in 1917 to help us grow a merchant marine. We hit that zenith in WWII and since then we have regulated our merchant Marine out of existence. This is a law that needs to be repealed and NOT replaced.
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