Diesel prices release a reckoning for the Jones Act
By Tyler Curtis November 10, 2022 06:00 AMAs diesel fuel prices rise across the country, the Department of Homeland Security is fielding requests for Jones Act waivers. While the government should approve these waivers, it seems likely that it will pursue a more permanent solution — to repeal the law altogether.
Otherwise known as the Merchant Marine Act of 1920, the Jones Act requires that any cargo carried between domestic ports must be transported on American-manufactured ships flying the American flag and manned by a mostly American crew. Initially aimed at protecting the U.S. shipping industry from foreign competition, the act artificially limits the supply of cargo ships, making it more costly to transport refined diesel fuel across the country. When energy shortages arise, governors often apply for waivers to get fuel delivered to their states from domestic refineries without having to wait for American ships to become available. Such waivers would not be necessary if the law were permanently revoked. Thankfully, there are strong indications that the Jones Act is facing a final repeal.
In July, six state governors all sent a letter to the secretary of energy asking for a suspension of the Jones Act to help their states bring down energy costs. These governors all lead states that will be hit the hardest by the artificially high transportation costs imposed by the Jones Act. But they’re not the only ones questioning the law’s usefulness. Other politicians, along with economists , including some who generally favor government regulation, have grown more vocal in their opposition to this onerous regulation. The Jones Act is more unpopular than ever.
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https://www.washingtonexaminer.com/restoring-america/courage-strength-optimism/diesel-prices-release-a-reckoning-for-the-jones-act
