About the U.S. Maritime Cabotage Laws

The Jones Act, Section 27 of the Merchant Marine Act, 1920, is the best known of the U.S. maritime cabotage laws. It is called the Jones Act in honor of its author, the late Senator Wesley Jones (R-WA). While the Jones Act dates from 1920, the United States has had laws to encourage a national flag fleet since its founding, and the principle of U.S. ownership, construction and crews has governed domestic waterborne commerce since 1817. The Jones Act has long been supported by the Executive Branch and Congress.

America's Jones Act fleet has tripled in size and quadrupled in productivity in the past four decades.

The other major cabotage laws and statutes are:

The U.S. Merchant Marine, of which the Jones Act fleet is a vital part, is recognized as "The Fourth Arm of National Defense." A strong merchant marine and Jones Act fleet ensure the United States 1) has world-class vessels to meet sealift needs; 2) has expert and experienced seafarers to man the U.S. government's organic surge sealift ships in times of national emergency; 3) has a modern shipyard industrial base that is critical to the nation's military and economic security; and 4) makes intermodal transportation systems available for defense use through the Voluntary Intermodal Sealift Agreement (VISA). Other contributions to national security include:

70 percent of the oceangoing self-propelled vessels in the Jones Act fleet are militarily useful. This is critical, as when American forces defend our interests on foreign soil, 95 percent of the materiel they require moves in ships.
The Jones Act fleet represents 30 percent of all VISA capacity, 34 percent of all U.S.-flag commercial containerships, 50 percent of all U.S.-flag roll on/roll-off vessels, and 82 percent of all U.S.-flag tankers.
Jones Act construction provides 76 percent of all commercial U.S. shipbuilding opportunities. Employment opportunities aboard Jones Act vessels represent 87 percent of those available on U.S.-flag vessels.

Jones Act tankers move Alaskan crude to West Coast refineries day and night.

America's Jones Act fleet is as diverse as the nation it serves. For a quick overview of the fleet, here's some basic facts and figures:

Number of vessels engaged in domestic waterborne commerce: 39,000 plus and growing every day. The current fleet represents an investment of nearly $30 billion.
Annual cargo movement: More than 1 billion tons, with a market value of $400 billion, and 100 million passengers.
Jobs: 123,000 directly related to maritime activity.
Total employment related to domestic waterborne commerce: 343,000.
Annual economic impact: $63 billion.
Annual taxes generated: $11.6 billion.
Efficiency: While Jones Act carriers move 17 percent of the nation's intercity freight in terms of ton-miles, freight charges account for only 1.7 percent of the nation's intercity freight bill.

Major cargos:

Grain, coal and other dry-bulk cargos and crude and petroleum via inland rivers;
Domestic crude oil from Alaska to West Coast refineries;
Iron ore, limestone and coal throughout the Great Lakes;
Refined petroleum products along the East and Gulf coasts;
Supplies for Gulf offshore operations;
Merchandise and construction materials to and from Alaska, Hawaii, Puerto Rico and Guam.

Range of service: The Jones Act fleet provide crucial services to 41 states and 90 percent of the population.

Jones Act vessels employ 9 out of 10 professional mariners.

The Jones Act fleet is a leader in innovation. Consider these "Jones Act Firsts":

Containerships
Self-unloading vessels
Articulated tug-barges
Trailer barges
Chemical parcel tankers
Railroad-on-barge carfloats
River flotilla towing systems

Click here to see the photo gallery

Another benefit of U.S. maritime cabotage laws is safety. U.S.-flag vessels are built and operated to the world's highest safety and environmental standards.

What's perhaps most impressive about America's Jones Act fleet is that companies engaged in domestic waterborne commerce receive no subsidies. The fleet has attained its stature because the Jones Act guarantees a level playing field, both among vessel operators and other modes of transportation. Knowing that everyone plays by the same rules allows fair competition to drive the marketplace. Competition is fierce. Only the most efficient can thrive in the Jones Act trades.