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What is the Jones Act?


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Among other things that have little or nothing to do with cruising...

 

The Jones Act (aka Merchant Marine Act) is a United States Federal statute that requires U.S.-flagged vessels to be built in the United States, owned by U.S. citizens, and documented under the laws of the United States. Documented means "registered, enrolled, or licensed under the laws of the United States." In addition, all officers and 75% of the crew must be U.S. citizens. Vessels that satisfy these requirements comprise the "Jones Act fleet".

The Jones Act restricts the carriage of goods between United States ports to United States flagged vessels.

 

The Passenger Services Act is a piece of United States legislation which came into force in 1886 relating to cabotage. Essentially, it says:

"No foreign vessels shall transport passengers between ports or places in the United States, either directly or by way of a foreign port, under a penalty of $300 for each passenger so transported and landed."

Any vessel subject to the Jones Act counts as a US vessel.

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Among other things that have little or nothing to do with cruising...

 

The Jones Act (aka Merchant Marine Act) is a United States Federal statute that requires U.S.-flagged vessels to be built in the United States, owned by U.S. citizens, and documented under the laws of the United States. Documented means "registered, enrolled, or licensed under the laws of the United States." In addition, all officers and 75% of the crew must be U.S. citizens. Vessels that satisfy these requirements comprise the "Jones Act fleet".

The Jones Act restricts the carriage of goods between United States ports to United States flagged vessels.

 

The Passenger Services Act is a piece of United States legislation which came into force in 1886 relating to cabotage. Essentially, it says:

"No foreign vessels shall transport passengers between ports or places in the United States, either directly or by way of a foreign port, under a penalty of $300 for each passenger so transported and landed."

Any vessel subject to the Jones Act counts as a US vessel.

 

hence the need for tha little stop in Victoria, BC on those cruises to Alaska from Seattle :)

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The Jones Act (aka Merchant Marine Act) is a United States Federal statute that requires U.S.-flagged vessels to be

Only certain US-flag vessels.

 

There are also other US-flag vessels that do not have to comply with these rules - e.g. they can be built outside the US.

 

The US-flag vessels that don't comply with the Jones Act are not allowed to engage in coastwise trade - in practice, this means trade between US ports. (Yes, California to Hawaii is "coastwise".)

 

It should be noted that there are multiple "Jones Acts", some of which have absolutely nothing to do with ships. This one is properly known as the Merchant Marine Act of 1920. Nonetheless, it is universally called the Jones Act in the maritime industry.

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Only certain US-flag vessels.

 

There are also other US-flag vessels that do not have to comply with these rules - e.g. they can be built outside the US.

 

The US-flag vessels that don't comply with the Jones Act are not allowed to engage in coastwise trade - in practice, this means trade between US ports. (Yes, California to Hawaii is "coastwise".)

 

It should be noted that there are multiple "Jones Acts", some of which have absolutely nothing to do with ships. This one is properly known as the Merchant Marine Act of 1920. Nonetheless, it is universally called the Jones Act in the maritime industry.

It's my understanding that if the keel is laid in a U.S. shipyard, the ship can be U.S.-flagged. This is what happened with the NCL ships that were being built in the U.S. before American Cruise Lines (I believe that was the name) went bankrupt. NCL purchased the half-built ships, had them towed to Europe and completed there. NCL was allowed to get them U.S.-flagged so that they could cruise in Hawaii without violating the Jones Act/PSA.
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It's my understanding that if the keel is laid in a U.S. shipyard, the ship can be U.S.-flagged.

No - it requires more than that. Basically, nothing beyond the most minor of cosmetic work can be done in a foreign yard if the ship is to be engaged in domestic trade.

 

The NCL ships required an Act of Congress and would have been illegal for domestic trade otherwise.

 

For international trade, it's a totally different story... e.g., the US-flag APL container ships that run between the US and Asia have been built foreign.

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The Jones Act also functions as a workman's comp for sailors/crewmembers/dockworkers. A sailor can elect one of three remedies blah blah long story short: he will elect a remedy under the Jones Act if he can prove that the shipowner (or stevedore, etc) was negligent.

 

I used to be a maritime lawyer. There is not a lot of maritime work here any more and most of the Jones Act work is found in New Orleans, SFO, NYC, Seattle and Boston. Admiralty and Maritime falls under federal jurisdiction so a sailor can sue anywhere he wants... when you see the term Jones Act used in anything regarding cruise ships it is usually to illustrate why ships with crews subject to the Jones Act will jack up the price of a ticket.

 

Previous posters are correct about needing that stop in a foreign country to bypass cabotage rights.

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Doesn't a portion of Jones Act (Passenger Carriage Act) also apply to airlines??

 

A foreign carrier, British Air (for example), is not permitted to fly between two U.S. Cities. Can land or take off in a U.S. city but can not travel directly to another U.S. city (absent emergency situation.)

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Doesn't a portion of Jones Act (Passenger Carriage Act) also apply to airlines??

 

A foreign carrier, British Air (for example), is not permitted to fly between two U.S. Cities. Can land or take off in a U.S. city but can not travel directly to another U.S. city (absent emergency situation.)

 

 

That would be the Passenger Services Act (a different piece of legislation) - which of course would have nothing to do with the Jones Act, as most foreign-flagged aircarriers fly Boeing airliners.

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What does the Boeing part have to do with whether a foreign carrier is permitted to carry passengers directly from one U.S. city to another? I don't understand the connection. Sure, I know Boeing is a U.S. manufacturer but Boeing did not build every plane that every non-U.S. airline flies.

 

Air France cannot fly an airbus between two U.S. cities.

 

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Doesn't a portion of Jones Act (Passenger Carriage Act) also apply to airlines??

It's a different law - much newer - but it's the same idea.

 

The biggest difference is that unlike ships, the airplanes don't have to be built in the US. So for example, it is perfectly legal for an American airline to use an Airbus (made in France or Germany) to carry passengers and cargo New York to Boston. But even if it is US-flag, a foreign-built ship can't carry passengers or cargo between New York and Boston.

 

most foreign-flagged aircarriers fly Boeing airliners.

What does that have to do with anything?

 

What does make a difference is that most domestic US carriers fly Airbuses, or little Bombardier or Embraer regional jets, or other foreign-built aircraft.

 

If they were shipping lines, that wouldn't be allowed.

 

It is rather ironic that the US aircraft industry is still extremely strong even though our own airlines are free to choose foreign airplanes, while the US shippbuilding industry is basically dead even though our shipping lines can't choose foreign ships (for domestic trade).

 

I should also point out that foreign air carriers do operate services within the US - but they don't sell them that way. For example, QANTAS has a flight from New York to Los Angeles, continuing on to Sydney. You can book this flight from New York to Sydney or LA to Sydney, but not New York to LA. Similarly, there is an Asiana flight from New York to Anchorage continuing on to Seoul. You can book it New York-Seoul or Anchorage-Seoul, but not New York-Anchorage.

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What does that have to do with anything?

 

What does make a difference is that most domestic US carriers fly Airbuses, or little Bombardier or Embraer regional jets, or other foreign-built aircraft.

 

If they were shipping lines, that wouldn't be allowed.

 

That was my rather-poorly-made point.

(Geez, a little snippy today, huh?)

:cool:

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