Some people love working on the ocean. They respect it, and they appreciate its bounty. Maybe you fish and make that your living. Perhaps you study marine life. 

The Jones Act protects you if you have maritime-based employment, but some people don’t know much about it. If you’re going to work on the ocean, you should certainly understand what this act means and why it matters.

In this article, we will take some time to talk about the Jones Act. We’ll discuss what it means, why the US government has it in place, and some of its ramifications.

What Does the Jones Act Entail?

First, let’s start by defining this act so you understand what it’s about. The Jones Act once went by another name, the Merchant Marine Act of 1920. It is a US federal law.

It states that goods transported via the water between US ports must remain on vessels documented, crewed, owned, and built by the United States. This law protects the domestic shipping industry, or at least that’s why the United States passed it.

Why Does This Act Exist?

If you look at what this law states, there’s something else that it implies, even if it doesn’t explicitly say it. It implies that it’s illegal for foreign ships to operate in US shipping lanes or along domestic routes without direct US government supervision. In the maritime world, you might also hear the term “cabotage” mentioned to describe such a law.

In essence, the law exists so ships and crews from outside the United States can’t operate independently of this country’s control. If this law didn’t exist, then ships and crews from international destinations could use the shipping lanes freely without paying tariffs and without the US having a hand in what they transport. 

Since these ships might bring in illegal cargo, it makes sense to have this law in place. This way, international crews and vessels must act according to strict laws that the US mandated they should follow if they want to sail in waters that America controls. 

To put it another way, the Jones Act exists so that US trade by sea remains a primarily American activity. The act also ensures that ships for commercial purposes and national defense will have availability in times of emergency or war.

How Can You Tell Whether a Ship Has the Proper Status?

If you’re working on a ship built, owned, and operated by an American company, and you’re sailing within US territorial waters, you’re following the law. You will probably have documentation on board that legally establishes the ship’s purpose for being on the water, and also its ownership status.

If the US Coast Guard stops you, they might demand to see those papers or proof of the boat’s ownership. If they see the right paperwork, then they should let you continue with your business, unless they determine that you are doing something improper or illegal.

What Other Impact Does the Jones Act Have?

If you talk to most individuals who work on the sea, they will tell you that they appreciate the Jones Act and support it. However, it does have one possible drawback that occasionally leads to some individuals complaining about it.

The Jones Act sometimes causes higher shipping costs. That’s because it virtually guarantees limited competition. 

While the United States government states that it has this law in place for the preservation of a maritime workforce and to maintain the domestic shipbuilding industry, some individuals who work on the ocean would have no issues trading with or buying from international vessels instead. They might feel that they could purchase cheaper products because they could buy them from foreign ships.  

Might the Government Ever Repeal the Jones Act?

It is not completely impossible that the US government might repeal or modify the Jones Act at some point. However, for the most part, it seems to have bipartisan support from both Democrats and Republicans, a relative rarity these days. 

Both sides of the aisle like the Jones Act because it is an “America first” type of law. It prioritizes American workers and companies rather than international ones.

The Jones Act also has a politically resilient status because, with it in place, there is a strict watch that the Coast Guard and other maritime entities keep on foreign vessels. National security concerns would probably come to the forefront if the government ever repealed the Jones Act. If it did, then foreign vessels could operate with a lot more freedom in America’s coastal waters.

The second Trump administration, in particular, has a very “America first” sentiment. Because it projects that kind of an attitude, it seems pretty unlikely that President Trump or those in his cabinet would want to ever do away with the Jones Act entirely. Frankly, even the US modifying it does not seem likely, at least with the current president in the Oval Office.

Those who support the Jones Act also say that the additional regulations keep the boats in our waters safer. The Jones Act mandates that ships or boats in our territorial waters have a certain level of upkeep. If the act did not exist anymore, then ships with poor conditions for the crew and lax safety standards could enter our waters. 

If the government ever decides to modify the Jones Act, you could certainly speculate about how that might look. For instance, maybe you would see a partial repeal of the current 50% tax on foreign ship repairs. Maybe the US could also install a tonnage tax that’s more in line with the international shipping norms that you’ll see in the territorial waters of several other countries. 

A subsidy program or Merchant Marine Reserve might also modify the act so that it’s more suited toward modern sensibilities. Still, if we were to predict what’s most likely, seeing no change to this act anytime soon probably makes the most sense.