Island Voices
Jones Act protects more than the cruise industry
By Creighton W. Goldsmith
When discussing vessel activity in Hawai'i, it's important to distinguish the Jones Act from the Passenger Service Act.
Advertiser library photo • October 2001
The Jones Act, Title 46 U.S.C. ¤861, requires that all cargo moved between two U.S. seaports is shipped on a vessel owned by a U.S. citizen or corporation, built in a U.S. shipyard and manned by a U.S. crew.
Cruise ships boost Hawai'i's economy, but other forms of shipping are equally vital.
This legislation, on the books in one form or another since the beginning of our nation, was enacted to protect American shipping, provide for a robust merchant marine and keep U.S. shipyards operating and viable.
The federal statute regulating the transportation of vessel passengers between two U.S. ports is the Passenger Service Act, Title 46 U.S.C. ¤289. Passed in 1886, it first provided a penalty of $2 for each passenger illegally transported. In 1898, that fine was raised to $200 where it remains today.
When the law was passed, there was no other method of moving people over bodies of water. Today, cruise ships are luxury recreational vehicles, not really a means to get from one point to another.
When American Classic Voyages went into bankruptcy, the argument for protecting an American cruise ship industry lost its urgency.
That should not be cause to believe that the Jones Act is an equally outdated law.
In today's world, who of us would want Hawai'i's lifeline to be in the hands of the lowest bidder? Would we want to be dependent on a foreign shipping line to ensure that there is a steady supply of food, milk and consumer goods in our island paradise?
I think not.
Hawai'i currently can thank Matson and CSX for a reliable and efficient supply of goods. Matson and CSX pioneered the use of the shipping container that permits the fast and efficient movement of both dry and refrigerated cargo. Hawai'i's citizens can now rely on a Matson container ship arriving every other day with a steady stream of food and goods. This eliminates the need to warehouse in Honolulu (at great expense) a month's supply of everything we consume here.
Hawai'i is one of the most difficult shipping markets in the world. Since the demise of agriculture in the Islands, our biggest exports are currently empty containers, scrap metal and paper and used rental cars. Few shipping lines would want to enter a market that hauls full containers one way and empty containers the other.
Matson continues to focus on its core market, the Hawaiian Islands, in good times and bad. Who but a fool would leave the transportation of our most basic needs to a foreign shipper who, in times like these, would direct their vessels to more profitable markets?
The next time someone makes an argument that the Jones Act is outdated and expensive, ask them if they are talking about cruise ships or cargo. Point out the value of having an American company as a steady and reliable shipper to the world's most remote archipelago.
Creighton Goldsmith is Chief Inspector of U.S. Customs in Honolulu. These views do not necessarily reflect those of the Customs Service.
