I get so tired of this stuff.
You can only read the same half truths and obfuscating stories so much so often. That this video comes from another legacy media talking head, underscores how little actual investigative journalism they probably did. It all makes me nauseous.
I live in Hawaii. I work in this industry. I know this stuff because I am living through it everyday. You can repeal the Jones Act tomorrow with a snap of your fingers. If you owned a US flag ship with Americans and are a US corporation, what would YOU do if they changed the law?
You’d do what any other sane business guy would do; incorporate in a foreign country to lower your taxes, reflag your ship to some low ball third world country, fire all the Americans, hire eastern Europeans to man your ship, and do business as usual.
Would I lower my freight rates? No, why would I do that? What little money I just saved myself by doing everything listed above, I’m gonna pocket that gravy. Thats for me. Plus, I probably gotta make the shareholders feel like they’re getting a little something, eh?
But on a daily basis, my operational cost won’t change whether I’m a US ship or Chinese flag. Lets say we have two identical ships side by side running between LA and Honolulu.
- I’m still paying the same for stevedore services in Los Angeles and Honolulu.
- I’m still paying for Pilots, Tugs, and Line Handlers.
- I’m still paying all the same port fees, dockage, moorage, port entry, etc.
- I’m still paying for fuel.
- I’m still paying for groceries and supplies and parts.
- I’m still having to fly crew back and forth, albeit maybe not as much or as often.
- I’m still paying for ship agency fees.
At the end of the each day, we’re all still paying the same to run our ships operationally. So maybe your mortgage is less on a foreign hull. But otherwise, the run these two ship are on are virtually the same, with the sky high price of fuel being the single biggest component that truly impacts the daily cost.
All the other issues may be valid, but getting back to the core “complaint” so often heard about the Jones Act causing high retail prices here in Hawaii, I say no.
When I hear somebody complaining about the Jones Act here, I ask them, “So how much should it cost to bring stuff to Hawaii on a ship?” (remember, the trade lane here is one way. Stuff comes in, empty boxes go back)
I never get a real answer, usually just more whining.