• Advertise
  • Contact Us
  • Supplier Directory
  • SCB YouTube
  • About Us
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Parcel & Express
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Robotics
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Customer Relationship Management
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • Green Energy
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • Sourcing/Procurement/SRM
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Management & Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Warehouse Automation
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • WHITEPAPERS
  • VIDEOS
Home » Ocean Transportation » The Jones Act and The Truth Squad

The Jones Act and The Truth Squad

July 12, 2010
Robert J. Bowman, SupplyChainBrain

Decorated war hero and stalwart American military supporter Sen. John McCain (R-AZ) has stepped up to take another whack at the Jones Act, the law that bans foreign-owned vessels from serving in the U.S. domestic waterborne trades. McCain's bill, S. 3525, also seeks to repeal the requirement that ships plying those waters be built in the U.S.

McCain makes a number of familiar economic arguments in support of his latest effort to sink the Jones Act. But the timing of his bill isn't random. He specifically cites the Gulf of Mexico oil spill, caused by the April 20 explosion of British Petroleum's Deepwater Horizon drilling platform, as a reason for offering the measure now.

"This antiquated and protectionist law has been predominately featured in the news as of late due to the Gulf Coast oil spill," McCain said in his statement accompanying introduction of the Open America's Water Act. "Within a week of the explosion, 13 countries, including several European nations, offered assistance from vessels and crews with experience in removing oil spill debris, and as of June 21, the State Department has acknowledged that overall 'it has had 21 aid offers from 17 countries.' However, due to the Jones Act, these vessels are not permitted in U.S. waters."

McCain goes on to say that the Obama Administration has not sought a blanket waiver of the Jones Act so as to allow any vessel to aid in Gulf cleanup and recovery efforts. While he supports that short-term option, he would much prefer to scrap the Jones Act in its entirety, "saving consumers hundreds of millions of dollars."

So our foreign friends stand ready to help us out in the Gulf, only they're prevented from doing so by an obsolete law dating back to 1920. What a frustrating state of affairs. The only problem: it isn't true.

The fact is that the Jones Act is no impediment to our soliciting foreign assistance in this or any other natural disaster. "Specialized foreign oil spill response vessels are welcome and already working - they either do not need a Jones Act waiver, or can get one without delay," according to a statement by the Maritime Cabotage Task Force. The lobbying group counts among its membership U.S. vessel owners and operators, shipbuilders, labor, equipment manufacturers, dredging contractors and trade associations.

But don't take MCTF's word for it. Here's a statement from the Deepwater Horizon Unified Command Center: "No vessels have been turned away [in the Gulf] due to the Jones Act."

And why not let a lawyer chime in? This according to H. Clayton Cook Jr., of the firm of Seward & Kissel LLP: "Waivers have not been granted because they have not been needed," he says in a recent memo to Maritime Transportation & Logistics Advisors, LLC. "The Jones Act expressly allows the operation of foreign 'oil spill response vessels ... in waters of the United States ... for the purpose of recovering, transporting, and unloading [spilled oil] in a United States port' (Title 46 United States Code 15113) without the necessity of a waiver."

So McCain and his supporters appear to be using the Gulf spill as nothing more than an excuse for dismantling Jones Act protections. Of course he makes the economic case as well, citing a 1988 report by the General Accountability Office that the law was costing Alaskan families up to $4,281 more a year for goods shipped from the mainland on U.S.-owned and operated vessels. MCTF responds that those figures are "outdated and widely discredited."

The economic argument cuts both ways. A report commissioned by the Transportation Institute and authored by PricewaterhouseCoopers identifies nearly 500,000 jobs that are directly or indirectly protected by the Jones Act. Proponents claim the law generates $100.3bn in annual economic output.

We all know how "economic impact" figures can be grossly inflated - there wouldn't be any publicly financed sports stadiums without this little trick - but just look at the size of the U.S. domestic waterborne fleet: more than 39,000 vessels, moving a billion tons of cargo each year. That represents a substantial resource, which helps to fuel the U.S. economy and is also readily available in times of war or national emergency. (By the way, notes Mark Yonge, managing member of Maritime Transport & Logistics Advisors, the Jones Act has nothing to do with cargo preference laws that require the use of U.S.-flag vessels for military movements, and agricultural shipments generated by American aid efforts. The two issues are often confused.)

In any case, the U.S. doesn't stand alone in its use of maritime cabotage. Forty out of 53 maritime nations surveyed by the U.S. Maritime Administration exercise "strong cabotage principles," MCTF points out.

Now we have the A Whale, a massive Taiwanese-owned, Liberian-flag tanker that has been repurposed as an oil skimmer, awaiting approval from the U.S. Environmental Protection Agency and U.S. Coast Guard to begin operations in the Gulf. Whether it can get the job done is still uncertain, but if it fails, it won't be the fault of the Jones Act. All the same, Yonge worries that media reports to the contrary will lead to a major misperception on the part of the American public. "They will never know that the Jones Act never interfered with recovery activities in the Gulf," he says.

During his presidential campaign, Sen. McCain launched a "Truth Squad" to counter what he claimed were inaccuracies or falsehoods spread by the opposition. Perhaps it's time for him to revive that effort.

Comment on This Article

    RELATED CONTENT

    RELATED VIDEOS

    Ocean Transportation Regulation & Compliance Supply Chain Security & Risk Mgmt Sustainability & Corporate Social Responsibility Consumer Packaged Goods
    KEYWORDS consumer packaged goods North America Ocean Transportation Regulation & Compliance SC Security & Risk Mgmt sustainability
    • Related Articles

      Does U.S. Domestic Shipping Still Need the Jones Act?

      It's Time for Jones Act to Walk the Plank, Says Sen. McCain

      Challenges in Shipping to Jones Act Markets

    Robert J. Bowman, SupplyChainBrain

    Watch: Closing the Skills Gap in Supply Chain Talent

    More from this author

    Subscribe to our Daily Newsletter!

    Timely, incisive articles delivered directly to your inbox.

    Featured Product

    Popular Stories

    • AERIAL VIEW OF A SHIPYARD SUPERIMPOSED WITH CYBERSECURITY SYMBOLS

      The Software Risk Hiding in Modern Supply Chains

      Business Strategy Alignment
    • On Demand Webinar Peak Zebra - SupplyChainBrain Webinar - Thu Oct 22 2026 2p ET.png

      RFID and Machine Vision are Having a Moment

      Webinars
    • GEARS MANUFACTURING iStock-bernie_photo-2219946641.jpg

      Five Current Challenges Preventing Real-Time Visibility in Connected Manufacturing

      Last Mile Delivery
    • A table titled "Transportation Nexus Assessment" that lays out a list of companies and scores them based on a series of weighted categories

      Better Supply Chains Releases Framework for Evaluating TMS Systems

      Technology
    • RAIN-SLICKED TRAFFIC AT NIGHT UNDER THE GLOWING FACE OF LONDON'S BIG BEN CLOCK

      Supply Chain Resilience Can Fight the Hidden Cost of Congestion

      LTL/Truckload Services

    Digital Edition

    Scb q3 26 cover

    100 Great Supply Chain Partners 2026: The Secret to Supply Chain Success

    VIEW THE LATEST ISSUE

    Case Studies

    • Recycled Tagging Fasteners: Small Changes Make a Big Impact

    • A GRAPHIC SHOWING MULTIPLE FORMS OF SHIPPING, WITH A HUMAN STANDING AT THE CENTER, TOUCHING A SYMBOLIC MAP OF THE WORLD

      Enhancing High-Value Electronics Shipment Security with Tive's Real-Time Tracking

    • A GRAPHIC OF INTERLACING HONEYCOMBED ELEMENTS REPRESENTING GLOBAL BUSINESS TRANSACTIONS

      Moving Robots Site-to-Site

    • JLL Finds Perfect Warehouse Location, Leading to $15M Grant for Startup

    • Robots Speed Fulfillment to Help Apparel Company Scale for Growth

    Visit Our Sponsors

    4flow Amazon Freight Anaplan
    Arkieva AutoStore Blue Yonder
    Canadian National Railway Company Carton Cloud CoEnterprise
    Dassault Descartes Dexory
    Duravant E2Open EPG
    General Logistics Systems GEP Hy-Tek
    iGPS Knapp Korber
    Lyngsoe Odyssey Logistics OMP
    PeakAI Procurability Quinyx
    SAP Sikick Staples
    S&P Global Mobility Systech TADA
    Tive TransImpact US Bank
    Werner WSI
    • More From SCB
      • Featured Content
      • Video Library
      • Think Tank Blog
      • SupplyChainBrain Podcast
      • Whitepapers
      • On-Demand Webinars
      • Upcoming Webinars
    • Digital Offerings
      • Digital Issue
      • Subscribe
      • Manage Email Preferences
      • Newsletters
    • Resources
      • Events Calendar
      • 2026 Event Coverage
      • SCB's Great Supply Chain Partners
      • Supplier Directory
      • Case Study Showcase
      • Supply Chain Innovation Awards
      • 100 Great Partners Form
    • SCB Corporate
      • Advertise on SCB.COM
      • About Us
      • Privacy Policy
      • Contact Us
      • Data Sharing Opt-Out

    All content copyright ©2026 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

    Design, CMS, Hosting & Web Development :: ePublishing