An appreciation for the Jones Act on Independence Day

As we celebrate Independence Day it is well worth noting that The American Maritime Partnership (AMP) and federal lawmakers, recently announced that California is the fourth largest domestic maritime state in the United States.

According to the findings of a new report conducted by PricewaterhouseCoopers (PwC) on behalf of Transportation Institute (TI), the Jones Act fuels a strong domestic maritime industry in The Golden State. The industry employs more than 51,450 individuals, produces $12.21 billion for the local economy and generates $3.6 billion in worker income in California alone.

Furthermore, this is an important shipyard state. A recent study of shipbuilding by the U.S. Maritime Administration (MARAD), covering both commercial and military ship construction, found a $3.67 billion annual economic impact in California with 34,810 associated jobs and more than $2.38 billion in worker income. 

The Jones Act study findings were announced last month, in San Diego at the christening of Lurline, the newest combination container/roll-on, roll-off (“con-ro”) ship of Oakland-based Matson, Inc. and General Dynamics NASSCO shipyard. Lurline is the largest “con-ro” ship ever built in the United States.

The Jones Act is not only a vital anchor for economic strength and job creation in California but also a pillar of the nation’s security and military capability. Specifically, this law states that the transportation of merchandise between U.S. ports is reserved for U.S. -built, -owned and -documented vessels.

“As a proud U.S. company and Jones Act carrier, our investment in this new ship is about much more than maintaining a high level of service to Hawaii,” says Matson’s chairman, Matt Cox. “It also helps drive substantial economic benefits and opportunities in communities around the Pacific, where this vessel will operate.”

Cox also shared some insights regarding logistics management imperatives. 

“These are all living wage jobs, supporting the families of American workers, the taxes they pay and the local impact they make all flow from this one ship,” he says. “Multiply that by all the ships NASSCO and other U.S. shipyards are building, and you get a sense of the value of the maritime industry to our country and its economy.”