"Proponents of the Jones Act claim that it supports the transport of goods between states and territories, enhances national security and helps to sustain hundreds of thousands of American jobs as well as the shipbuilding industry, while contributing billions of dollars to the U.S. economy."
"Despite the ostensible intent to protect the shipbuilding industry, the act has also hurt it because it has made U.S. ships up to five times more expensive to build than those manufactured abroad. These factors have resulted in a smaller supply of American ships that are available to transport goods."
"Suspending the Jones Act allows foreign ships to transport oil and gas between ports within the U.S., which should lead to lower transportation costs and increased supply. This should ease gas costs over time - but we're talking months, not days or weeks."
The Jones Act requires goods transported between U.S. ports to use American-built ships. Supporters argue it protects national security, sustains hundreds of thousands of jobs, and benefits the shipbuilding industry and economy. Critics contend it raises transportation costs significantly in regions dependent on marine transport and has paradoxically harmed shipbuilding by making American vessels five times more expensive than foreign alternatives, reducing competition and increasing construction and transportation costs. Temporary suspensions allow foreign ships to transport oil and gas domestically, potentially lowering gas prices. A 2022 JPMorgan analysis estimated a temporary suspension could save East Coast motorists about 10 cents per gallon, though short-term suspensions have minimal impact due to industry response time and shipping costs being secondary to other fuel price factors.
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