EDITORIAL COMMENT
Jones Act – help or hindrance?
Sophisticated multi-purpose oil spill response vessels, such as recently delivered example from Damen, Sosrcem, would come in handy in the US Gulf of Mexico (Credit: Damen Shipyards Gorinchem).
I
n the wake of the recent Deepwa- ter Horizon oil spill in the US Gulf of Mexico people high up in the echelons
of maritime intelligence are asking: “Is it time to repeal the Jones Act and get help to clean up this mess?” The Jones Act, also formally known as Section 27 of the Merchant Marine Act of 1920, was initially introduced post World War I in order to protect the vulnerable US shipping industry from external threats. If you ask shipping businesses and US labour unions one major benefit of the Act is the protection from foreign competition. A study commissioned from the
USA-based Offshore Marine Services Association has shown that US-flagged offshore support vessels, the shipyards that build them and related industries produce annual benefits of 100,000 jobs, US$18 billion in business sales and US$4.6 billion in wages – so you can see why many US-based shipping companies approve the Act. In the case of the Deepwater Horizon
the Jones Act limits the transportation of ‘merchandise’, in this case oil, between points in the United States on vessels that have US owners, US crews and are built in US shipyards. However, it is permitted for a foreign-built and manned vessel to skim oil more than 3miles from the US shore. What about closer to home? Anchor handling tugs, barges, skimmers
and oil recovery vessels are all required for the clean up mission and many of these vessels will be required to operate between the site of the damaged rig and a US port, therefore it
Ship & Boat International July/August 2010
could be argued that the clean up is hindered by an 80-year old law preventing foreign help. US Coastguard Admiral Tad Allen said
in a press briefing on 25 June 2010: “We have had no request for Jones Act waivers. If the vessels are operating outside state waters,
“US-flagged
support vessels, the shipyards that build them and related industries produce annual benefits of 100,000 jobs, US$18 billion in business sales and US$4.6 billion in wages.”
which is three miles and beyond, they don’t require a waiver. All that we require is an Affirmation of Reciprocity, so if there ever was a spill in those countries and we want to send skimming equipment, that we would be allowed to do that, as well, and that hasn’t become an issue yet, either. To the extent that there is a waiver required and they come to us, we’re more than happy to support it in making that request to CBP [US Customs
and Border Protection]. But to date, since they’re operating outside three miles, no Jones Act waiver has been required.” While Admiral Allen stated that if required the Coast Guard would grant Jones Act waivers on an individual basis he also added: “Nobody’s come to me with a request.” The White House and the US Coast
Guard have said publicly that foreign ships trying to help in the Deepwa- ter Horizon spill were turned away. Within a week of the explosion, 13 countries, including several European nations, offered assistance from vessels and crews with experience in removing oil spill debris, and as of 21 June, the US State Department had acknowl- edged that overall “it has had 21 aid offers from 17 countries.” However, due to the Jones Act, these vessels were not permit- ted in US waters. Fifty-seven days after the spill the US Coast Guard finally announced procedures for applica- tions to receive Jones Act waivers. White House records available at whitehouse. gov and union statements have clearly indicated strong union opposition to any Jones Act waivers, though the US finally permitted such foreign ships from helping almost eight weeks after the spill. So it hasn’t become an issue yet, right?
Try telling that to the fishermen whose livelihood and fish stocks are ruined and to the people living in coastal Louisiana, Alabama, Mississippi and Florida with oil washing up on their beaches every day. SBI
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