Section 27 of the merchant marine act is known as the jones act and deals with cabotage coastwise trade and requires that all goods transported by. Second eco class jones act product carrier in american. Additional information on jones act vessels potential. An economic analysis of the jones act mercatus center. The jones act alliance for innovation and infrastructure. The fleet also faces substantially higher operating expenses due to the cost of employing us citizens. Kinder morgan to expand its fleet of jones act tankers. Among other purposes, the law regulates maritime commerce in u. Psi, the sole operating subsidiary of philly shipyard asa. Under the terms of what is commonly called the jones act the formal name being the merchant marine act of 1920, 2 shipping between any two points in the united states is restricted to u. In response to a congressional request, gao examined the effects of the jones act on alaska trade to determine the. As the th and 14th vessels built in their class, their proven design provides crowley. Eias original report mentioned 56 jones act tankers handling.
This chapter examines the economic viability of the domestic jones act petroleum transportation industry 1 in light of the doublehull requirements of section 4115 of the oil pollution act of 1990 opa 90. Between 2006 and 2011, the jones acteligible fleet shrank by just over 17 percent. Maritime law center, the jones act, november 1, 2016. The passage of the oil pollution act of 1990 opa 90 by the u. After pipeline explosion, business booms for jones act. After jettisoning its international flag tanker business, the new osg is now a pure jones act operator. Jones act eligible 61 97 4 maradprograms msp visa vta 66 5 28 20 63 u.
Its fleet of 10 atbs include older units that came to osg with its 2006 acquisition of. With the acquisition of these three tankers, the company now operates 40 jones actqualified large petroleum transportation vessels in the united states with a combined capacity of more than 12 million barrels. New jones act tankers are great for traders, lousy for owners. The merchant marine act of 1920, which is commonly referred to as the jones act, is a federal law that allows seamen to sue their employers for onthejob injuries caused by negligence on the part of vessel owners, companies, shipmasters, or fellow crew members. Since 2012, the capacity of the jones act fleet of tankers and large articulated tug barges atbs has increased by more than onethird, to 22. The second reason the jones act tanker fleet remains small is their high cost of operation compared to nonu. We estimate supply and demand functions in this market, then use the estimates to compute consumer, producer, and total surplus in the presence and in the hypothetical absence of the jones act. The jones act requires goods or passengers moved in u. The jones act fleet provides extra capacity and manpower that the military can call upon during deployments. Seafarers sail aboard new jones act tanker american phoenix lands in siu fleet the doublehulled tanker american phoenix above, in mobile, ala. Edited transcript of osg earnings conference call or.
The jones act requires that all goods transported between u. Jones act in the market of petroleum product tankers. Some of these issues may be addressed in the coast guard and maritime transportation act of 2014 h. Theyre part of a growing fleet of socalled jones act ships, named for a law almost a century old that mandates any. Claims process for jones act maritime injury guide. Due to their competitive advantage in labor costs and material inputs, asian countries make up the vast majority of the global oceangoing tanker market share, with korea at 60%, china at 30% and japan at 8% as of 20. The current usbuilt fleet has an average age of 33 years, versus years for the global fleet. Overall, the jones act fleet is responsible for over half a million u. American petroleum tankers apt is a subsidiary of kinder morgan terminals and is engaged in the marine transportation of crude oil, condensate and refined products in the united states domestic trade, commonly referred to as the jones act trade. Kinder morgan to expand its fleet of jones act tankers houston business wire kinder morgan energy partners, l.
These tankers include nine stateoftheart vessels delivered between 2015 and 2017, which were constructed in u. The fleet, nearly 200 vessels strong in 2000, is now less than half that size. The merchant marine act of 1920 is a united states federal statute that provides for the promotion and maintenance of the american merchant marine. Our active fleet includes tankers and articulated tug barges, of which 18 operate under the jones act and 2 operate internationally in the u. Research conducted for doublehull tanker legislation. The delivery marks another highpoint for crowleys petroleum services group as its tankers are at the forefront of the industry for their potential future conversion to lng. This is because the jones act, a 1920 law that seeks to protect u. In total, osg has 10 vlccs, one ulcc, two ulcc fsos, one suezmax, nine aframaxes, two aframax size lightering vessels, nine panamax crude oil carriers, four lr1s and 23 product tankers.
Sflag fleet overall containership dry bulk general generalcargo ro. Although there are us crude exports and the tanker market the us flag, osgmanaged jones act mr overseas chinookhas been converted into a shuttle tanker. The apt tankers are on order at the general dynamics nassco shipyard in san diego. Possible jones act waivers future of jones act replacement of tankers with barges reduction in active seafarers role of domestic trade in u. Navys position is clearrepeal of the jones act would hamper americas ability to meet strategic sealift requirements and navy shipbuilding. Philadelphia, penn prweb april 15, 2016 crowley maritime corp. Overall, there are more than 40,000 vessels in the jones act fleet, according to amp. Ro tanker 25 2 9 7 57 jones act eligible dry bulk cargo. Congress and subsequent modifications of international maritime regulationsnamely, the addition of regulations f and g to the international convention for the prevention of pollution from ships, adopted in 1973 and amended in 1978 marpol 7378resulted in a farreaching change in the design of tank vessels. Ship to wreck can the jones act tanker market keep. For nearly 100 years the jones act has restricted the transportation of cargo between two points in the united states to ships that are u. The first siu crew members aboard the jones act vessel included group photo, first. Consolidated fleet summary and change list maritime.
Appendix iv summarizes the requirements of jones act provisos and related laws, appendix v details our methodology, and appendix vi lists the ships in the alaskatrade jones act fleet in 1987. Industry us report us crude exports and the tanker market. Legislative and regulatory background congressional research service 1 introduction the jones act, which refers to section 27 of the merchant marine act of 1920 p. Jones act fleet, newbuilds are once again on the rise. As the th and 14th vessels built in their class, their proven design provides crowley customers with absclassed vessels that have been thoroughly tested and refined for performance and. Idle msc chemicals west coast clean usg crude oil 28 % 36 % 35 % 26 % 20 %. Kinder morgan kinder morgan continues to expand its. To offer the widest variety of petroleum and chemical transportation solutions for customers, crowley has further committed its investment in the jones act and the revitalization of its product tanker fleet with the purchase of two u.
American phoenix lands in siu fleet seafarers sail aboard. Growth in oil activity stimulates orders for new jones act. A burden america can no longer bear, does at least acknowledge that the total jones act fleet is around 40,000 vessels actually closer to 41,000, according to an october 2018 study, but it argues, of course, the primary objective of the law was to ensure a vibrant shipping industry as a pillar of u. On a positive note for tanker owners, the usgusac trade pattern for cpp could. Claims process for jones act claims process for jones act if youre a qualified seaman and are injured on the job as a result of negligence by a vessels owner, officers, employer, or a fellow mariner, there are certain steps you must follow in order to file a legal claim against your employer under the jones act. Apts current fleet of sixteen medium range jones actqualified product tankers, each with 330,000 barrels of cargo capacity, is the largest and most modern in the industry. New amo jobs as crowley completes acquisition of three. So far, the jones act mediumrange oil tanker fleet is pegged at about 44, with new ships on the way in 20142016. The delivery marks another highpoint for crowleys petroleum services group as its tankers are at the forefront of the industry for.
The mt pennsylvania and the mt florida engage in the marine transportation of crude oil, condensate and refined products in the united states, commonly referred to as the jones act trade, and are. Jones act tanker fleet deployment by main trades tankers and atbs 7 source. Department of transportation maritime administration united. Crowley takes delivery of louisiana, third jones act. Jones act tanker market to grow with oil production. One widely acknowledged consequence of the jones act is that the usbuilt fleet is considerably older than the global, nonus built fleet. Petroleum tankers, chemical carriers, lng carriers, lnglpg. Navigistics wilson gillette report, june 2017 and amsc analysis. Rather than maintaining a fleet of vessels that sits dormant until a period of deployment, the military can call on the jones act fleet on a temporary basis. United states flag privatelyowned merchant flee maritime. The jones act is a federal law that regulates maritime commerce in the united states. Merchant marine policy the future of the jones act tank vessel fleet henry s. According to bloomberg vesseltracking data, about 27 jones act vessels were in service around the u.
As of december 15, 2019, there were some 24 container ships in the jones act fleet. Jones act eligible vessels that are eligible to participate in domestic trade. The water transportation segment is responsible for most of the economic contribution of the jones act fleet, accounting for 54 percent of employment and 78 percent of output. Terms of office in meba the meba membership referendum also yielded a longer term of elective office from three years to four, beginning with the terms of officials to be elected later this year. Jones act tanker fleet deployment by main trades tankers and atbs crude tanker deployment back at 20 levels. Navigistics wilson gillette report dec 2019 and amsc analysis note. The jones act ensures a strong and vibrant maritime industry, which helps ensure the united states maintains its expertise in shipbuilding and waterborne transportation. Its us flag fleet consists of 14 handysizemrs, plus 10 atbs the latter. The jones act was closely based on the federal employers liability act fela of 1908, which covers railroad employees.
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