Merchant Marine Act of 1920 (Jones Act)
The Merchant Marine Act of 1920 (P. L. 66-261) is also known as the Jones Act after Senator Wesley L. Jones of Washington who sponsored it. The act was passed to boost and protect the health of the United States' Merchant Marine in the post-World War I era. It deals with, among other topics, cabotage or coastal shipping and requires all merchandise shipped by water between US ports be carried in US-flag ships, which are owned by US citizens, which were constructed in the United States, and are crewed by US citizens.
The Jones Act has served a number of purposes since its passage. It certainly helped the country meet the shipbuilding and merchant mariner needs of World War Two, just as it has helped support our naval defense ever since. It has helped maintain our offshore, coastal and inland maritime fleet, providing jobs and spurring economic activity in our country. With the renewed concern over security since the September 11th terrorist attacks, it has reduced the risk to our transportation infrastructure by making sure that vessels that work domestically are crewed by Americans who are fully vetted by the U.S. Coast Guard. It also helps maintain the expertise in American shipyards to build the security-related vessels in use by the Coast Guard and other armed services.
It is worth noting that Congress considered the Jones Act to be so necessary that it made violation punishable by loss of the full cargo or an equivalent fine. The full Jones Act may be found at 46 U.S. Code Chapter 551:
Sec. 55102. Transportation of merchandise
(a) Definition.--In this section, the term ``merchandise'' includes--
(1) merchandise owned by the United States Government, a State, or a subdivision of a State; and
(2) valueless material.
(b) Requirements.--Except as otherwise provided in this chapter or chapter 121 of this title, a vessel may not provide any part of the transportation of merchandise by water, or by land and water, between points in the United States to which the coastwise laws apply, either directly or via a foreign port, unless the vessel--
(1) is wholly owned by citizens of the United States for purposes of engaging in the coastwise trade; and
(2) has been issued a certificate of documentation with a coastwise endorsement under chapter 121 or is exempt from documentation but would otherwise be eligible for such a certificate and endorsement.
(c) Penalty.--Merchandise transported in violation of subsection (b) is liable to seizure by and forfeiture to the Government. Alternatively, an amount equal to the value of the merchandise (as determined by the Secretary of Homeland Security) or the actual cost of the transportation, whichever is greater, may be recovered from any person transporting the merchandise or causing the merchandise to be transported.
Congress has consistently supported the Jones Act, as has every President for the last 30 years. In fact, while he was still a candidate, President Barrack Obama said:
"America needs a strong and vibrant U.S.-Flag Merchant Marine. That is why you ... can continue to count on me to support the Jones Act (which also includes the Passenger Vessel Services Act) and the continued exclusion of maritime services in international trade agreements."
- Barack Obama, August 28, 2008
