How Does the Jones Act Affect Cruise Ships?

By Michael Ferguson

The Jones Act, also known as the Merchant Marine Act of 1920, is a federal law that governs maritime commerce in the United States. The act requires all goods transported by water between U.S. ports to be carried on ships that are built, owned, and operated by Americans. This means that foreign-flagged vessels are prohibited from transporting passengers or cargo between two U. ports.

How Does the Jones Act Affect Cruise Ships?

The Jones Act has a significant impact on the cruise industry. Since most of the world’s cruise ships are not built in the United States, they are considered foreign-flagged vessels. As a result, these ships cannot transport passengers between two U. ports without violating the Jones Act.

What Does This Mean for Cruise Lines?

Cruise lines have to ensure that their itineraries comply with the Jones Act. For example, if a ship departs from Miami and visits Key West before arriving at its final destination in Mexico, it is not in violation of the law because it made an international stop before returning to another U. port.

However, if a cruise line wants to offer a round-trip itinerary from Miami to San Francisco without stopping at any foreign ports, it would need to use a U.-built and crewed ship to comply with the Jones Act.

Why Was the Jones Act Enacted?

The Jones Act was passed primarily to protect American shipping interests after World War I. The act was designed to ensure that American ships and crews would remain competitive in domestic trade by preventing foreign-flagged vessels from taking over this market.

What Are the Pros and Cons of the Jones Act?

Pros:

  • The act protects American jobs in the shipping industry.
  • It ensures that American companies have access to the domestic shipping market.
  • The act helps to maintain the U. maritime industry’s infrastructure and capabilities.

Cons:

  • The Jones Act limits competition, which can result in higher shipping costs for consumers.
  • The act discourages foreign investment in the U. maritime industry.
  • The act can make it difficult for U. companies to find suitable ships or crews for certain routes or projects.

Conclusion

The Jones Act has a significant impact on the cruise industry and other sectors of the U. While it offers protection to American jobs and companies, it also limits competition and can result in higher costs for consumers. As such, it remains a controversial piece of legislation that is likely to be debated for years to come.