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Cabotage battle erupts in US

Jones Act debated in Congress

31 July 2003

Strong opposition to deregulation of US/Hawaii trade

The Jones Act, US cabotage legislation which restricts domestic shipping to national flag carriers, is under threat of repeal, Lloyds List reports.

Three bills were indtroduced in Congress yesterday to amend or repeal the federal Merchant Marine Act of 1920 (aka the Jones Act).

Behind the deregulation push is Hawaii representative Ed Case who says he wants to end a "stranglehold" on cargo shipping that exists between his state and the US West Coast.

"The major effort of the Jones Act today is to control the market and increase prices for westbound shipping from West Coast ports to Hawaii," Case says.

The Maritime Cabotage Task Force (MCTF) says it will vigorously oppose the Case plan.

The eight-year-old MCTF, comprising more than 400 US businesses, says the Jones Act fleet "supports the nation's military and economic soundness", efficiently moving 24 per cent of domestic cargo for less than two per cent of the US freight bill.



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Contact : MUA Shipping Division
Phone : +61 2 9267 9134
Fax : +61 2 9261 3481
Email : membership@mua.org.au
WWW : http://mua.org.au/


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