Lake Carriers' Association has denounced the Coastal Competition Shipping Act introduced yesterday in the Senate by Senator Jesse Helms (R-NC). The bill would substantially alter the Jones Act, the Federal law which regulates domestic waterborne commerce. "Although introduced by Senator Helms, this legislation was written by the Jones Act Reform Coalition, an organization which includes foreign-controlled agricultural and shipping interests," said Association President George J. Ryan. "We have reviewed this bill during its developmental stages and the final version, while still seductively titled, remains nothing more than an attempt to allow foreign-flag ships employing Third World crews into our domestic trades. These ships would be largely exempt from U.S. taxation, labor and safety laws and would represent such unfair and subsidized competition that the entire U.S.-Flag fleet on the Lakes and elsewhere would be in serious jeopardy. American shipyards would become a thing of the past."
The Jones Act is Federal legislation which requires cargo moving between two U.S. ports to be carried in vessels which are U.S.-owned and U.S.-built. Vessels documented under the laws of the United States are required to employ American citizens. Although enacted in 1920, the basic principles of the Jones Act have been the law of the land almost since the nation's founding. The American rail, trucking and aviation industries operate under similar laws.
"This whole debate over the Jones Act has been characterized by half-truths and outright distortions," Ryan continued. "For example, in Senator Helms' introductory speech, no doubt penned by the Jones Act Reform Coalition, it is stated that there are 'no certified Jones Act ships to meet the demands of producers [North Carolina hog and turkey farmers for midwest grain].' "
"That statement is not correct," Ryan declared. "When North Carolina farmers expressed interest in moving grain from the Great Lakes to North Carolina, U.S.-Flag carriers with ships and tug/barge units certified for ocean service did attempt to meet the need, but they were rebuffed. This whole issue has much more to do with farmers' dissatisfaction with rail freight rates and capacity than it does Jones Act vessel availability. The end result, however, will be that with U.S.-Flag vessels effectively removed from the scene, American railroads will be forced to compete directly with foreign-owned, -built and -crewed vessels for domestic cargos. In essence, our immigration laws will no longer apply to domestic waterborne commerce."
Ryan warned that the Coastal Shipping Competition Act threatens not just U.S.-Flag carriers and shipyards, but also the environment. "The Coastal Shipping Competition Act will exempt foreign-flag ships from the stringent safety and operational standards the United States enforces on U.S.-Flag vessels. The Great Lakes are the source of drinking water for 25 million North Americans. The Lakes have been protected by the high standards we and Canada apply to vessels flying our respective nations' flags, but the maritime industry does have a problem with substandard ships and operators. So real is the problem of substandard ships and operators that the U.S. Coast Guard has just added 11 countries to the list of Flag States to be targeted for increased ship inspections when operating in U.S. waters."
Ryan pledged an aggressive campaign to defend the Jones Act and other U.S. Cabotage laws. "LCA, both on its own behalf and as part of the Maritime Cabotage Task Force, a national coalition of Jones Act interests, will use all its resources to defend our Cabotage laws from this unwarranted attack. The U.S.-Flag Lakes fleet is the most efficient in the world and has provided its customers with safe, efficient and reliable transportation of raw materials such as iron ore, coal, stone, cement... These supposed reforms of the Jones Act will only surrender the U.S.-Flag Lakes fleet to foreign interests and destroy the shipbuilding industry in the U.S. - a source of real concern for our national security."