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How the Jones Act in the Gulf Coast Affects Non-U.S. Vessels

Posted in Jones Act
bulk carrier ship

The Jones Act has been around since 1920 and governs several aspects of U.S. waters. It even has provisions which provide various forms of compensation for workers injured while in the service of a vessel. In the Gulf Coast area, the Jones Act helps maintain a balance between U.S. and non-U.S. vessels regarding what goods and products are transported from one port to another.

About 40 years ago, an amendment was made to the Jones Act that allowed for non-U.S. vessels to transport materials from one domestic point to another. This was implemented at a time when U.S. vessels in the Gulf Coast could not meet the demand for transporting goods like pipelines and pipeline repair materials.

It was supposed to be a temporary fix to a problem. However, it has continued to be practiced to this day. Back in 2017, a proposed amendment would have changed how things have been working in the Gulf Coast. It would have essentially banned non-U.S. ships from operating in the Gulf—even the ones that have been operating in the area for years already.

If the amendment had passed, it would have created shortages because current U.S. vessels cannot meet shipping demands. Until the U.S. transportation fleets can be increased to meet demand, non-U.S. ships will continue to help supplement shipping demand shortages.

How Trump’s Proposed Waving of the Jones Act Could Affect the U.S.

cargo ship underway

The Trump Administration currently is reviewing waiving the Jones Act about allowing non-U.S. vessels to transport liquefied natural gas from one port to another, including to Puerto Rico. The administration is claiming there are no qualified ships to carry the natural gas. However, this is not correct, as there are many U.S. ships which are qualified to transport the natural gas.

Waiving the Jones Act will have a direct impact on the newly emerging liquefied natural gas transport industry. It will cause a ripple effect, which will overflow into the U.S. shipbuilding, manufacturing, and shipping industries, as well as cause the end of many jobs in these industries.

If you are in the service of a U.S. vessel and were injured while on the job, you are entitled to certain relief as provided under the Jones Act. To find out what compensation you could be entitled to receive, please feel free to contact Maintenance and Cure, part of Schechter, Shaffer & Harris, L.L.P., at 1-800-836-5830 to speak to a Jones Act attorney today!

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