Joshua Thompson is a senior attorney at Pacific Legal Foundation, a public interest law firm that defends Americans鈥 liberty against government overreach and abuse. He represents individuals for free in lawsuits challenging anticompetitive laws.
It鈥檚 a daily assault on businesses struggling to stay competitive and consumers forced to pay exorbitant prices.
The Jones Act is a demonstrably bad policy, strangling the economy, driving up costs for ordinary citizens and crippling local businesses in Alaska and Hawaii. Why, then, does it continue to exist?
Because protecting a few powerful players from competition moves legislators more than economic freedom. And because lawsuits challenging the Act have failed to seize upon an important piece of the Constitution.
The Jones Act, passed in 1920, requires that goods transported between U.S. ports be carried on ships that are U.S.-built, U.S.-owned, and U.S.-crewed. While it was pitched as an effort to ensure the viability of America鈥檚 maritime fleet after World War I, that鈥檚 only half of the story.
From its inception, the law had the Alaskan and Hawaiian shipping industries in its sights. The act鈥檚 namesake, Wesley Jones, was the senior senator from Washington and was concerned with protecting his state鈥檚 shipbuilding industry. Disadvantaging the American 鈥渢erritories鈥 was a feature of the law, not a bug.
Because nearly all goods arrive by sea, the Jones Act is particularly harsh for the residents and businesses of Hawaii and Alaska. In Hawaii, mandating U.S. ships for all inter- and intra-state shipping results in higher costs for everything from hotel supplies to daily necessities like food and beverages.
These costs are passed on to residents and tourists, making Hawaii a more expensive place to live and a more expensive destination for visitors.
The same story is true for people who live in or even frequent the so-called Last Frontier of Alaska.
The Jones Act restricts the vessels that can transport fish from Alaskan waters to U.S. markets, meaning Alaskans must use more expensive American ships even when more affordable and efficient foreign-built vessels are available. This reduces profit margins for Alaskan fishermen and makes their products less competitive in the global market.
‘Severe Economic Damage’
The numbers are telling: the Jones Act cost the Alaska and Hawaii economies billions. From food and construction materials to fuel and essential goods, the Jones Act inflates prices on nearly every product that enters the two states.
This isn鈥檛 just an economic inconvenience; it鈥檚 a daily assault on businesses struggling to stay competitive and consumers forced to pay exorbitant prices for necessities.
Given its severe economic damage, it should be no surprise that various legal challenges have been brought against the Jones Act over the past hundred years. While the Act has survived those challenges, one has never been tried 鈥 and it鈥檚 promising.
The Port Preference Clause in Article I, Section 9 of the U.S. Constitution explicitly states, 鈥淣o Preference shall be given by any Regulation of Commerce or Revenue to the Ports of one State over those of another.鈥 Yet, the very purpose of the Jones Act is to prioritize the ports of the mainland states.
Maybe that protectionist purpose was constitutional in 1920 when the object of the discrimination was only American 鈥渢erritories.鈥 But once Alaska and Hawaii became states in 1959, it became harder to justify.
And given that the effects of the Jones Act are felt acutely by residents and businesses in those states, the constitutionality of this century-old legislation is seriously suspect. If the Port Preference Clause means anything, it means Congress cannot pass laws that have the purpose and effect of putting Alaskan and Hawaii ports at a disadvantage.
People in Alaska and Hawaii deserve better than to be shackled by this relic of a bygone era, and the Constitution mandates it. Where there鈥檚 a willing plaintiff, there鈥檚 a way to do it.
Sign up for our FREE morning newsletter and face each day more informed.
Community Voices aims to encourage broad discussion on many
topics of
community interest. It鈥檚 kind of
a cross between Letters to the Editor and op-eds. This is your space to talk about important issues or
interesting people who are making a difference in our world. Column lengths should be no more than 800
words and we need a photo of the author and a bio. We welcome video commentary and other multimedia
formats. Send to news@civilbeat.org. The opinions and
information expressed in Community Voices are solely those of the authors and not Civil Beat.
Joshua Thompson is a senior attorney at Pacific Legal Foundation, a public interest law firm that defends Americans鈥 liberty against government overreach and abuse. He represents individuals for free in lawsuits challenging anticompetitive laws.
Great idea Joshua, abolish the Jones act and allow foreign ships to carry our goods, crewed by foreign crews payed sub par foreign wages. (Side note US crew labor wages have not kept up with inflation and cost of living). Then let芒聙聶s bring in foreign labor for everything in Hawaii while we are at it芒聙娄maybe all service jobs could be foreign labor芒聙娄that would be cheaper right? Let芒聙聶s also sub out the construction jobs to foreign labor too, maybe the military too, could save some money?Let芒聙聶s also get rid of the PUC too, because who needs reliable liner service to Hawaii? Who needs the mail? Let芒聙聶s have Hawaii be completely dependent on the free market芒聙娄sorry Molokai, no barge this month, slow tourist month Maui just make due with what you have and a ship will come once it芒聙聶s full and profitable.
BEl·
3 months ago
Those interested in learning more about this theory may wish to read a 2022 article in the Yale Law Journal entitled "The Neglected Port Preference Clause and the Jones Act." Hard to say how the courts would respond to the inevitable legal challenge, but it has the potential to make Matson and Pasha Hawaii very unhappy, as well as their numerous Hawaii-based employees.
Carl_Christensen·
3 months ago
While the article may be correct, it's rather like spitting into the wind. Congress can repeal it and no Congress in the last 100 years has shown any inclination to do so. I don't see any changes in the Jones Act coming down the road but protesting it was a nice gesture.
IDEAS is the place you'll find essays, analysis and opinion on public affairs in Hawaii. We want to showcase smart ideas about the future of Hawaii, from the state's sharpest thinkers, to stretch our collective thinking about a problem or an issue. Email news@civilbeat.org to submit an idea.