The Jones Act, Puerto Rico, and Barges: A Brief Overview

What is the Jones Act?

On June 5, 1920 the 66th United States Congress passed the Merchant Marine Act of 1920, which is commonly referred to as the Jones Act. The Jones Act prohibits foreign built and foreign flagged vessels from moving cargo port to port in the United States. By reserving the domestic shipping for vessels that are built, owned, crewed and flagged in the United States, Congress maintained that it strengthened national security by supporting the U.S. merchant Marine.

The Jones Act is enforced throughout the United States including Alaska, Hawaii, Guam and Puerto Rico. The US Virgin Islands, American Samoa and Northern Mariana Islands have been exempt from certain parts of the law. The US Customs and Border Protection, Department of Homeland Security and Coast Guard all help enforce the Jones Act.

Does my ship fall under the jurisdiction of the Jones Act?

If you are attempting to move commercial cargo from port to port in the United States or its territories, then it is likely that your vessel falls under the jurisdiction of the Jones Act. The Act covers accommodation barges (floatels), deck barges, spud barges, floating crane barges, drilling ships, oil rig platforms, passenger ships, push boats, oceangoing cargo vessels, small service ships and other commercial vessels. The Small Passenger Waiver Program allows for ships carrying no more than 12 passengers to be exempt. Customs is authorized to issue other waivers, but will not do so if The United States Maritimes Administration finds domestic ships to be available.

Has the Jones Act ever been waived?

Since the enactment of the Jones Act, there have been four times when it has been waived. The Department of Homeland Security will review requests on a case-by-case basis and will only grant waivers on the grounds of national defense. The Secretary of Defense has granted waivers in times of national emergencies. In the wake of Hurricane Katrina, the Jones Act was waived for vessels carrying oil and natural gas from September 1 to 19, 2005. In January 2012, the Jones Act was waived for an emergency shipment of gasoline from Dutch Harbor, Alaska to Nome. Also in 2012, the Secretary of Homeland Security issued a waiver for 12 days from November 2 to 13 after Superstorm Sandy. After Hurricanes Harvey and Irma, the Jones Act was waived for 7 days from September 8 to 15, 2017.

What does waiving the Jones Act mean for Puerto Rico?

Earlier today, President Trump waived the Jones Act for 10 days to help Puerto Rico recovery efforts. The waiver covers all products moving into Puerto Rico. In addition, it will help expedite delivering equipment to repair the infrastructure that was damaged during the storm.