The U.S. cargo crisis is unfolding before our eyes, and it's not just about weather-sensitive barges failing under windy conditions or vessels taking on water due to holes. The root cause of these incidents lies in a century-old law that makes the most efficient vessels unaffordable: the Jones Act.
This outdated legislation requires ships moving goods between U.S. ports to be U.S.-registered and built in American shipyards, a policy that has proven to be more of a burden than a benefit. The result is a system where shippers are forced to rely on slow, weather-sensitive barges instead of modern self-propelled ships.
The economics simply don't add up. Building a deck barge capable of carrying 620 containers within Hawaii costs $25 million, while larger barges servicing the Puerto Rico trade cost between $30 million and $100 million, with adding a tugboat tacking on another $20 million. Compare this to a U.S.-built container ship, which can carry over 2,500 containers for more than $225 million.
This skewed economics has pushed shippers toward barges, resulting in a surge of domestic waterborne cargo moved by barges over the decades. But this is not just about cost; it's also about efficiency and reliability. Barges are slower, less maneuverable, and more vulnerable to rough weather than purpose-built ships, making them ill-suited for long-haul ocean supply chains.
Experts have long warned about the limitations of relying on barges for essential routes like Alaska–Seattle or Jacksonville–San Juan. The Alaska Steamship Company described its barge service as "slow and unreliable" back in 1968, and more than half a century later, the Congressional Research Service echoed this warning, noting that substituting barges for ships means moving cargo "in smaller, slower, and less reliable conveyances."
The benefits of using modern vessels are clear. Shipping firm Crowley Maritime uses only ships for St. Thomas and St. Croix in the U.S. Virgin Islands, where they're able to take advantage of a longstanding Jones Act exemption. The result is faster service – ships make the Jacksonville–San Juan passage in about three days, while barges require five.
So what's the lesson here? America's supply chains are too important to be left tethered to outdated maritime policy. The Jones Act is not protecting U.S. commerce; it's putting it at risk. It's time for policymakers to re-examine this law and consider alternatives that will promote efficiency, reliability, and economic growth.
This outdated legislation requires ships moving goods between U.S. ports to be U.S.-registered and built in American shipyards, a policy that has proven to be more of a burden than a benefit. The result is a system where shippers are forced to rely on slow, weather-sensitive barges instead of modern self-propelled ships.
The economics simply don't add up. Building a deck barge capable of carrying 620 containers within Hawaii costs $25 million, while larger barges servicing the Puerto Rico trade cost between $30 million and $100 million, with adding a tugboat tacking on another $20 million. Compare this to a U.S.-built container ship, which can carry over 2,500 containers for more than $225 million.
This skewed economics has pushed shippers toward barges, resulting in a surge of domestic waterborne cargo moved by barges over the decades. But this is not just about cost; it's also about efficiency and reliability. Barges are slower, less maneuverable, and more vulnerable to rough weather than purpose-built ships, making them ill-suited for long-haul ocean supply chains.
Experts have long warned about the limitations of relying on barges for essential routes like Alaska–Seattle or Jacksonville–San Juan. The Alaska Steamship Company described its barge service as "slow and unreliable" back in 1968, and more than half a century later, the Congressional Research Service echoed this warning, noting that substituting barges for ships means moving cargo "in smaller, slower, and less reliable conveyances."
The benefits of using modern vessels are clear. Shipping firm Crowley Maritime uses only ships for St. Thomas and St. Croix in the U.S. Virgin Islands, where they're able to take advantage of a longstanding Jones Act exemption. The result is faster service – ships make the Jacksonville–San Juan passage in about three days, while barges require five.
So what's the lesson here? America's supply chains are too important to be left tethered to outdated maritime policy. The Jones Act is not protecting U.S. commerce; it's putting it at risk. It's time for policymakers to re-examine this law and consider alternatives that will promote efficiency, reliability, and economic growth.