Jones Act

 

Jones Act vessels are U.S.-built, U.S.-owned, U.S.-crewed, and U.S.-documented ships and vessels used for domestic water transport between U.S. ports under the Merchant Marine Act of 1920. These requirements are designed to protect the U.S. maritime industry by restricting this cabotage trade to American-flagged and crewed vessels. The law applies to various commercial vessels, including cargo ships, tankers, tugboats, cruise ships, commercial fishing vessels, and some offshore drilling platforms. 

 

Key Requirements for Jones Act Vessels:

• U.S.-Crewed: The crew must be U.S. citizens. 
   

• U.S.-Documented: The vessel must be registered in the United States. 
   

• U.S.-Built: The vessel must be built (or rebuilt) in the United States. 
   
• U.S.-Owned: At least 75% of the equity and voting interest must be controlled by U.S. citizens, and any corporate parents must qualify as a Documentation Act Citizen. 
   

Types of Vessels Covered:

The Jones Act applies to a range of commercial vessels engaged in domestic water transport, such as: 

 

• Tugboats and barges

• Tankers and container ships

• Oilfield service vessels

• Commercial fishing vessels

• Cruise ships

• Offshore drilling rigs, drilling ships, and production platforms

Purpose of the Jones Act:

The Jones Act serves as an economic protectionist strategy to bolster American shipyards and the nation's maritime fleet. It is a federal statute that ensures goods transported between U.S. points via water are moved exclusively by U.S.-flagged vessels. 

 

Exceptions and Waivers:

In certain circumstances, the U.S. government can issue waivers to the Jones Act requirements. 

 

• National Security Waivers: The Secretary of Defense can request waivers for national defense reasons.

• Disaster Relief Waivers: Waivers can be granted in the aftermath of natural disasters to allow foreign vessels to supply affected areas.