U.S. Representatives Ed Case and James Moylan are leading a renewed effort to reform the Jones Act, a federal law that they say drives up the cost of essential goods for non-contiguous U.S. states and territories. The lawmakers reintroduced three bills aimed at eliminating shipping restrictions that have long been seen as burdensome for locations like Hawaii, Alaska, Guam, and others.
The Jones Act, dating back to 1920, requires all shipping between U.S. ports to be done on ships owned and operated by U.S. citizens, contributing to the high cost of imported goods. Case highlighted that Hawaii imports over 90% of its necessities by ocean cargo, with just two U.S. flag domestic cargo lines controlling the market.
A study by the Grassroot Institute of Hawaii estimated that the law costs the state $1.2 billion annually, amounting to $645 per resident. Without the Jones Act, the state could see an increase in tax revenues of $148.2 million.
The bills reintroduced by Case and Moylan aim to alleviate the burden on non-contiguous U.S. areas by exempting them from the Jones Act, setting reasonable shipping rates, and preventing monopolies in shipping areas. Case stated that the current situation has caused harm to states and territories dependent on the Jones Act and calls for a change in the status quo.
The lawmakers believe that by reforming the Jones Act, competition in the shipping industry could increase, leading to lower prices for essential goods. They are urging their fellow legislators to support the measures that would benefit the residents of non-contiguous U.S. states and territories.
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