Yesterday, Drewry Maritime Research of the UK usedMatson’s $418m containership order at Aker Philadelphia Shipyard as the platform for an argument against the Jones Act, which protects US owners and shipyards from low-cost foreign competitors.
In a report distributed to clients across the globe it said the price attached to the 3,200-teu newbuildings “underlines the possibility that US flag protectionism is an increasingly expensive luxury” before making the case for why the law should be repealed.
Today, the report drew criticism from the American Maritime Partnership (AMP), a powerful member-supported advocacy group that serves as one the voices of the Jones Act shipping industry in Washington, DC, the nation’s capitol.
"The Drewry report is a weak attempt to use cost data taken out of the national strategic context of the Jones Act to construct a false narrative that fulfils private commercial objectives," it told TradeWinds.
“The Jones Act serves a critical economic, homeland, and national security purpose and the utility of the law is best left to those who understand its importance, the US Congress, not those who stand to gain economically from its repeal."
The Jones Act, which is a reference to the Merchant Marine Act of 1920, states that the coastwise shipments of goods must be transported by vessels that are US built, US flagged, US crewed and owned by a US company.
The law has survived countless attacks over the years from opponents at home and abroad but few believe it will be repealed anytime soon. At a recent conference hosted by TradeWinds, the acting head of the US Maritime Administration pledged to protect the Jones Act at all costs.
Update: The Navy League of the United States weighed in on the Drewry report as well, adding: "The United States is bound together by a vibrant domestic maritimeindustry that not only drives our economy, but also provides ourcountry with a critical national security asset.
"Support for the law hasnever been stronger because a robust US-flag fleet is essential to thesecurity and prosperity of our nation."
You can read Drewry's report about the US cabotage market by clicking on the link located under the Related Media section to the right of this article
