"Jones Act" Amendment

Aaron Toman will propose an amendment to the Merchant Marine Act of 1920 (Pub. L. 66–261, also known as the "Jones Act") to reduce the negative impacts that it places on Hawai'i and all other US Ports outside the continental 48 states. This amendment would exclude Hawai'i, Alaska, and all US Territories (American Samoa, Guam, the Northern Mariana Islands, the US Virgin Islands, & Puerto Rico) from having to follow the guidelines set out in the Jones Act, allowing these communities to see lower cost of living expenses, quicker and more direct shipping of goods, higher customer satisfaction caused by free-market competition, and more benefits for the people being served by our maritime industry, not more control in the hands of a few monopolized corporations. 

As the House Minority Leader, Aaron will have a platform that no other Hawai'i representative has had in the past to bring this important topic to the attention of our nation's leaders and help free US citizens from the chains that the Jones Act has placed on the states of Hawai'i and Alaska, along with all our island territories. By repealing the Jones Act, the cost of living in Hawai'i should be able to be reduced significantly with the savings that the free market will bring. More savings on everything shipped to our islands means more money in the hands of Hawai'i's residents and more opportunities that come from having those additional funds.

A:

The Merchant Marine Act of 1920 is a United States federal statute that provides for the promotion and maintenance of the American merchant marine. Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Merchant Marine Act is known as the Jones Act and deals with cabotage (coastwise trade). It requires that all goods transported by water between U.S. ports be carried on ships that have been constructed in the United States and that fly the U.S. flag, are owned by U.S. citizens, and are crewed by U.S. citizens and U.S. permanent residents. The act was introduced by Senator Wesley Jones. The law also defines certain seaman's rights.

While beneficial to the US's Maritime Industry and somewhat beneficial to the US Mainland, the effects on Hawai'i, Alaska, and all the US Islands has been far from beneficial to the point where the average resident would call the Jones Act "detrimental" to the island's economy and quality of life for its residents.

As a quick example with the Jones Act in place: if a Hawai'i resident wishes to make a bulk purchase from Japan that will be put into a shipping container and shipped overseas via boat, the boat will travel across the Pacific Ocean, passing Hawai'i to reach a port on the US Mainland. Once there, the shipping container is then loaded onto a Jones Act Qualified Vessel and shipped half way back across the Pacific Ocean to be delivered to Hawai'i. Due to the fees and tariffs imposed by the Jones Act, it makes more financial sense for the vessel operators to pass by Hawai'i and go directly to the US Mainland with their full load and because of this, the Hawai'i resident that placed the original order now has to wait nearly twice as long for their delivery (as compared to stopping in Hawai'i's port to drop off a partial load before continuing to the US Mainland) and pay nearly twice as much as they are now shipping their same order twice (Japan to Mainland and Mainland to Hawai'i), that extra shipping expense is then passed off to the customers that have to now pay more for the final product. 

If the Jones Act were not in place: If a Hawai'i resident wishes to make a bulk purchase from Japan that will be put into a shipping container and shipped overseas via boat, the boat will travel across the Pacific Ocean, stop in a Hawai'i Port to unload any shipping containers destined for Hawai'i, then would continue to the US Mainland with the rest of their load. In this scenario, the Hawai'i resident has to wait half as long for their order to be delivered and will pay half as much for it to be shipped directly without other stops. Since the products were delivered for a cheaper amount, the end products can then be sold to the public at a lower price while still earning the same profit.

There have been many attempts to outright repeal the Jones Act that have all ended unsuccessfully. While I agree that the Jones Act should be repealed, I believe that in order to bring immediate relief to Hawai'i, the quickest path forward is with an amendment to the Jones Act. Once an amendment is passed and all US Islands receive the relief from the burdens caused by the Jones Act, the broader conversation of repealing can continue to take place with factual information and data to compare the effects of the Jones Act on the US Mainland versus the effects of not being restricted in the US Islands.