A long-term waiver of the Merchant Marine Act of 1920, commonly known as the Jones Act, will harm the U.S. economy in four key areas, a recent Transportation Institute economic analysis found.
The Jones Act requires vessels moving cargo between U.S. ports must be American-built, American-owned and American-crewed. A long-term waiver of the requirements would risk up to $1.8 billion in federal, state and local tax revenue annually, up to $2.6 billion in maritime capital investment annually and up to $26.5 billion in domestic shipbuilding demand over 10 years. In addition, up to 133,700 total U.S. jobs, representing up to $12.2 billion in annual labor income, would be exposed.
“Behind every number in this report is an American worker, a family, and a community that depends on a strong U.S. maritime industry,” Sara Fuentes, Transportation Institute president, said. “Every extension of the waiver has sent uncertainty and anxiety among Americans who build ships, move cargo, and keep our supply chains running. We hope PwC’s estimates provide the Trump Administration and Congress with a better picture of how another extension of this Jones Act waiver would weaken America, not strengthen it.”
The study used public Bureau of Labor Statistics, Bureau of Economic Analysis, and U.S. Maritime Administration data.