Coastwise shipping laws
Encyclopedia
The maritime Coastwise Shipping Laws -or Merchant Marine Act of 1920- (commonly referred to as the Jones Act as it was sponsored by U.S. Senator Wesley L. Jones) is a United States
Federal statute
that regulates maritime commerce in U.S. waters and between U.S. ports. It is a cabotage
law, and also defines certain seaman
's rights.
The Jones Act allows injured sailors to obtain damages from their employers for the negligence of the ship
owner, the captain
, or fellow members of the crew. It operates simply by extending similar legislation already in place that allowed for recoveries by railroad workers and providing that this legislation also applies to sailors. Its operative provision is found at 46 U.S.C.
688(a), which provides:
This allows U.S. seamen to bring actions against ship owners based on claims of unseaworthiness or negligence. These are rights not afforded by common international maritime law.
The United States Supreme Court, in the case of Chandris, Inc., v. Latsis, 515 U.S. 347, 115 S.Ct. 2172 (1995), has ruled that any worker who spends more than 30 percent of his time in the service of a vessel on navigable waters qualifies as a seaman under the act. An action under the act may be brought either in a U.S. federal court
or in a state court
.
Opponents of the Jones Act contend that the U.S. shipbuilding industry has suffered as a result. Ship operators are incented to maintain veteran U.S.-built vessels rather than replace them with new tonnage. In addition, U.S. shipyards have adapted to building only those ships that are needed by Jones Act operators, with price tags that reflect their all-American workforces. Subsequently, the claim is that U.S. shipbuilders have long since priced themselves out of the international market for merchant ships.
A 2001 U.S. Department of Commerce Study study indicates that U.S. shipyards built only 1 percent of the world's large commercial ships. The report concluded that the lack of United States competitiveness stemmed from foreign subsidies, unfair trade practices, and lack of U.S. productivity.
Moreover, critics point to the lack of a U.S.-flagged international shipping fleet. The Jones Act, they claim, makes it economically impossible for U.S.-flagged, -built, and -crewed ships to compete internationally with vessels built and registered in other nations with crews willing to work for wages that are a fraction of what their U.S. counterparts earn.
Some proponents make the case that allowing foreign-flagged ships to engage in commerce in our domestic sea lanes would be like letting a foreign automaker establish a plant in the U.S. which doesn't have to pay U.S. wages, taxes, or meet national safety or environmental standards.
Pressure exerted by 21 agriculture groups, including the American Farm Bureau Federation, failed to secure a Jones Act waiver following Hurricane Katrina in the Gulf of Mexico. The groups contended that farmers would be adversely affected without additional shipping options to transport grains and oilseeds.
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...
Federal statute
Federal government of the United States
The federal government of the United States is the national government of the constitutional republic of fifty states that is the United States of America. The federal government comprises three distinct branches of government: a legislative, an executive and a judiciary. These branches and...
that regulates maritime commerce in U.S. waters and between U.S. ports. It is a cabotage
Cabotage
Cabotage is the transport of goods or passengers between two points in the same country by a vessel or an aircraft registered in another country. Originally starting with shipping, cabotage now also covers aviation, railways and road transport...
law, and also defines certain seaman
Seaman
Seaman is one of the lowest ranks in a Navy. In the Commonwealth it is the lowest rank in the Navy, followed by Able Seaman and Leading Seaman, and followed by the Petty Officer ranks....
's rights.
Preamble
Cabotage
The cabotage provisions of the Jones Act restrict the carriage of goods or passengers between United States ports to U.S. built and flagged vessels. In addition, at least 75 percent of the crewmembers must be U.S. citizens. Moreover foreign repair work of U.S.-flagged vessels' hull and superstructure is limited to 10 percent foreign-built steel weight. This restriction largely prevents Jones Act ships from refurbishing their ships at overseas shipyards.Seaman's rights
The U.S. Congress adopted the Jones Act in 1920, formerly 46 USC Sec. 688 and codified on October 6, 2006 as 46 USC Sec. 3010. The Jones Act formalized the rights of seaman which have been recognized for centuries.
"From the very beginning of American civilization, courts have protected seaman whom the courts have described as 'unprotected and in need of counsel; because they are thoughtless and require indulgence; because they are credulous and complying; and are easily overreached. They are emphatically the wards of admiralty.'"
The Jones Act allows injured sailors to obtain damages from their employers for the negligence of the ship
Ship
Since the end of the age of sail a ship has been any large buoyant marine vessel. Ships are generally distinguished from boats based on size and cargo or passenger capacity. Ships are used on lakes, seas, and rivers for a variety of activities, such as the transport of people or goods, fishing,...
owner, the captain
Captain (nautical)
A sea captain is a licensed mariner in ultimate command of the vessel. The captain is responsible for its safe and efficient operation, including cargo operations, navigation, crew management and ensuring that the vessel complies with local and international laws, as well as company and flag...
, or fellow members of the crew. It operates simply by extending similar legislation already in place that allowed for recoveries by railroad workers and providing that this legislation also applies to sailors. Its operative provision is found at 46 U.S.C.
United States Code
The Code of Laws of the United States of America is a compilation and codification of the general and permanent federal laws of the United States...
688(a), which provides:
"Any sailor who shall suffer personal injury in the course of his employment may, at his election, maintain an action for damages at law, with the right to trial by jury, and in such action all statutes of the United States modifying or extending the common-law right or remedy in cases of personal injury to railway employees shall apply..."
This allows U.S. seamen to bring actions against ship owners based on claims of unseaworthiness or negligence. These are rights not afforded by common international maritime law.
The United States Supreme Court, in the case of Chandris, Inc., v. Latsis, 515 U.S. 347, 115 S.Ct. 2172 (1995), has ruled that any worker who spends more than 30 percent of his time in the service of a vessel on navigable waters qualifies as a seaman under the act. An action under the act may be brought either in a U.S. federal court
United States district court
The United States district courts are the general trial courts of the United States federal court system. Both civil and criminal cases are filed in the district court, which is a court of law, equity, and admiralty. There is a United States bankruptcy court associated with each United States...
or in a state court
U.S. state
A U.S. state is any one of the 50 federated states of the United States of America that share sovereignty with the federal government. Because of this shared sovereignty, an American is a citizen both of the federal entity and of his or her state of domicile. Four states use the official title of...
.
Criticism
Critics note that the legislation results in costs for moving cargoes between U.S. ports that are far higher than if such restrictions did not apply. In essence, they argue, the act is protectionism.Opponents of the Jones Act contend that the U.S. shipbuilding industry has suffered as a result. Ship operators are incented to maintain veteran U.S.-built vessels rather than replace them with new tonnage. In addition, U.S. shipyards have adapted to building only those ships that are needed by Jones Act operators, with price tags that reflect their all-American workforces. Subsequently, the claim is that U.S. shipbuilders have long since priced themselves out of the international market for merchant ships.
A 2001 U.S. Department of Commerce Study study indicates that U.S. shipyards built only 1 percent of the world's large commercial ships. The report concluded that the lack of United States competitiveness stemmed from foreign subsidies, unfair trade practices, and lack of U.S. productivity.
Moreover, critics point to the lack of a U.S.-flagged international shipping fleet. The Jones Act, they claim, makes it economically impossible for U.S.-flagged, -built, and -crewed ships to compete internationally with vessels built and registered in other nations with crews willing to work for wages that are a fraction of what their U.S. counterparts earn.
"The Jones Act steals jobs from American seamen who could be working on coastwise freighters and feeders." Rob Quartel, president of the Jones Act Reform Coalition.
Support
Supporters of the Jones Act maintain that the legislation is of strategic economic and wartime interest to the United States. The act, they say, protects the nation's sealift capability and its ability to produce commercial ships. In addition, the act is seen as a vital factor in helping maintain a viable workforce of trained merchant mariners for commerce and national emergencies. Further the Jones Act, say supporters, protects seafarers from deplorable living and working conditions often found on foreign-flagged ships.Some proponents make the case that allowing foreign-flagged ships to engage in commerce in our domestic sea lanes would be like letting a foreign automaker establish a plant in the U.S. which doesn't have to pay U.S. wages, taxes, or meet national safety or environmental standards.
"If someone were to propose that we let foreign workers compete with GM workers in the U.S., they would be laughed at." Arthur J. Volkle, associate general counsel, MARITRANS Inc.; a Philadelphia-based tug and barge operator.
Waivers of Jones Act provisions
Requests for waivers certain provisions of the act are reviewed by the United States Maritime Administration on a case by case basis. Waivers have been granted for example, in cases of national emergencies or in cases of strategic interest. For instance, declining oil production prompted MARAD to grant a waiver to operators of the 512-foot Chinese vessel Tai An Kou to tow an oil rig from the Gulf of Mexico to Alaska. The jackup rig will be under a two-year contract to drill in the Alaska's Cook Inlet Basin. The waiver to the Chinese vessel is said to be the first of its kind granted to an independent oil-and-gas company.Pressure exerted by 21 agriculture groups, including the American Farm Bureau Federation, failed to secure a Jones Act waiver following Hurricane Katrina in the Gulf of Mexico. The groups contended that farmers would be adversely affected without additional shipping options to transport grains and oilseeds.