02-19-2015, 10:46 AM
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The Jones act was and is for the military - to insure American trained personel, know-how and ownership for times of war. They require ocean going transport for troops and supplies. American shipping is a relic of this "military-industrial complex".
These (american wages) extra costs are to some degree offset from Military Sealift Command funds. Matson, Hoizon, and Pasha are receiving payments as part of ready reserve fleet.
Yes, more competition would bring down rates somewhat. But the big cost factor is the huge number of empty containers that need to be repositioned and over a great distance. An empty costs the same as a loaded one and takes the space of potential revenue. So this imbalance doubles the costs per container and is reflected in the price we pay.
Unless Hawaii creates an export trade our shipping costs will remain high, and this isn't even considering distance and small market costs. Our 1.3 million can't even feed itself produce. Then there are the costs and environmental issues in building new marine terminals and yards. What do you want to see built on our shoreline?
Repealing the Jones Act is no panacea. It would require major changes to really lower our shipping costs.
The Jones act was and is for the military - to insure American trained personel, know-how and ownership for times of war. They require ocean going transport for troops and supplies. American shipping is a relic of this "military-industrial complex".
These (american wages) extra costs are to some degree offset from Military Sealift Command funds. Matson, Hoizon, and Pasha are receiving payments as part of ready reserve fleet.
Yes, more competition would bring down rates somewhat. But the big cost factor is the huge number of empty containers that need to be repositioned and over a great distance. An empty costs the same as a loaded one and takes the space of potential revenue. So this imbalance doubles the costs per container and is reflected in the price we pay.
Unless Hawaii creates an export trade our shipping costs will remain high, and this isn't even considering distance and small market costs. Our 1.3 million can't even feed itself produce. Then there are the costs and environmental issues in building new marine terminals and yards. What do you want to see built on our shoreline?
Repealing the Jones Act is no panacea. It would require major changes to really lower our shipping costs.