Lake Carriers' Association has sent the following letter to the 75 members of the House of Representatives from Great Lakes states who to date have signed House Continuing Resolution 65, a statement of full support for the Jones Act and related maritime statutes. In total, 243 members of the House have signed HCR 65, much more than a simple majority.
March 31, 1998
Dear Representative:
Lake Carriers’ Association represents 11 American corporations operating 58 U.S.-Flag vessels exclusively on the Great Lakes. The cargos we move between U.S. ports - iron ore, coal, stone, cement, salt... truly drive the economy in the Great Lakes basin.
The movement of cargo between U.S. ports is referred to as the Jones Act trades. Last year you, and 74 other representatives from the Great Lakes states, signed House Continuing Resolution 65, a statement of full support for the Jones Act and related maritime statutes. As of today, 243 members of the House have signed HCR 65, much more than a simple majority.
My purpose today is to relate two very important developments concerning the Jones Act and Great Lakes shipping. First, the Lakes Jones Act fleet has picked up right where it left off when the record-breaking 1997 season ended in January. LCA members and other U.S.-Flag Great Lakes carriers will operate 68 of their 70 vessels during the 1998 shipping season. That’s an increase of one vessel. During 1997, a veteran laker was converted into a State-Of-The-Art self-unloader and has already loaded and discharged cargo at ports in Michigan, Indiana and Ohio. Since water levels are down this year, it may not be possible to better last year’s record total of 125 million tons, but we’re sure going to try!
The second development is the GAO has definitely rejected a supposed annual "cost" of $2.8 billion ascribed to the Jones Act in a 1995 ITC study. The GAO found much of the ITC data unverifiable or too dated. More importantly, the GAO scolded the ITC for not fully considering the cost of complying with U.S. tax, labor and safety laws. Exempt foreign ship operators from our laws and guess what - their freight rates are lower than U.S.-Flag vessels built and operated to the highest safety standards. Then again, when has Congress ever allowed anyone to compete in domestic commerce without obeying our laws, paying taxes, employing American citizens...? A ludicrous assumption for sure, but Jones Act critics quietly ignored that flaw.
I trust these developments only serve to strengthen your support for the Jones Act. Again, thank you for cosponsoring HCR 65.
Sincerely,
George J. Ryan
President
Lake Carriers' Association