Experts slam shipping’s “outdated Jones Act” after near railroad strike highlights holes in the supply chain
The threat of a railroad strike had both railroads and unions forging a deal at the very last second, leaving many shippers breathing a sigh of relief last week. However, the near-miss left many industry experts scrutinizing just how exposed the supply chain is to further challenges, particularly highlighting the Jones Act as a “foolish law.”
The Jones Act, a provision of the Merchant Marine Act of 1920, bars cargo transported between U.S. ports over water unless the ship is built, owned, and crewed by Americans. This does not extend to cargo that is made in other countries - it only pertains to domestic products. This leaves only 93 vessels that can fall within compliance with the Jones Act and creates a window for severe disruption should any issues arise.