John F. Frittelli

“ Although in peacetime the Jones Act may be viewed by many as an anachronism, in wartime, shipbuilding and a merchant marine are viewed as vital to national security. Defense groups argue that the maritime community represents a highly skilled work force and a physical establishment that can not be quickly replaced once it is lost. They assert that the national security importance of the Jones Act goes beyond the simple "bean counting" of deep-sea vessels. The most valuable national security component that the Jones Act provides, they contend, is a domestic shipbuilding and repair base. ”

“ Like U.S. trade policy in other goods or services, the Jones Act is highly controversial because there are definite winners and losers. The potential losses from lifting the shipping restrictions, such as jobs in shipyards and the merchant marine, are highly visible and concentrated, while the potential gains, such as lower consumer prices,are largely invisible and widely dispersed. It is worth noting that some of the largest shipyards in the country are the largest employers in the states where they are located. ”

“ By raising the price of domestic waterborne transport, they say it encourages transport by railroad or pipeline, thus decreasing the demand for domestic ship construction. Critics claim that the protection afforded by the Act has allowed U.S. shipyards to fall behind the rest of the world in efficient and innovative building methods.
Bulk Shippers. In general, bulk shippers are more likely to be affected by the Jones Act because their commodities have a lower value per unit cost which means the transport costs are a much higher portion of the total cost to the end user. ”