Jones Act repeal advocated to reduce shipping costs

Arguments have been made for the repeal of the Jones Act, a component of the Merchant Marine Act of 1920. The law requires that all vessels transporting cargo between U.S. ports be built, owned, flagged, and predominantly crewed by Americans.

Critics argue the act acts as a "national sales tax" that increases costs for consumers and producers by eliminating foreign competition in domestic shipping. The inefficiency impacts non-continental states significantly; for example, one study indicates the act costs Hawaiian families approximately $1,800 annually. It also affects residents in Alaska and Puerto Rico.

Despite its intent to bolster the domestic shipbuilding industry, the number of compliant oceangoing ships in the U.S. has fallen from 193 in 2000 to 92. Furthermore, the industry produces only an average of three ships per year, at costs four to five times higher than international competitors. While proponents claim the act strengthens national defense, critics note that job numbers in the shipping industry have remained stagnant for decades.