Jones Act and Hawaii's High Cost of Living (Honolulu: transporting, hotels)

[R_Cowgirl]

If you live in Hawaii, Love Hawaii, are thinking of moving to Hawaii, do yourself a favor and read up on the Jones Act. (http://www.hawaiireporter.com/story.aspx?764f473b-09cb-44e4-b531-a0a97351e8fc - broken link) It is a cabotage law that was enacted almost a hundred years ago during our protectionist years, and it is time for it to go away. There is a compelling study done on it in this article. Scroll down and download the PDF file of the complete study at the end. We are always talking about "COST OF SHIPPING" creating a problem in the islands. Yet few go any further than that. The shipping employees love the Jones Act, because it guarantees longshoremen starting pay of $100,000 per year.

Foreign ships cannot ship goods between US ports under this law, for one. So it keeps foreign ships that need to stop on the mainland from stopping here first, even though they are "driving right by." This means goods have to be re-packed and re-shipped on an American liner BACK to the islands. THAT is what the "cost of shipping" means... the goods from foreign ports are delayed because they have to pass us by and go all the way to LA or SF! And if a foreign ship picks up cargo in one of those ports, it could easily offload some cargo in Hawaii on its way back to Asia, but that can't happen. Only a US ship can do that.

And that is the tip of the iceberg. Our government is subsidizing the US shipping industry under the Jones Act to the tune of $3 Billion a year. A subsidy that would be unnecessary if we had no Jones Act. But bureaucrats need to protect their positions. That subsidy has created a bureau that oversees the subsidies. Can't lose THOSE JOBS. Never mind what this law has done to small businesses all over the US.


Please read the article, scroll to the end, download the full study, and communicate it to everyone you know. Our "representatives" have been protecting these lucrative unions and NOT fighting to repeal the Jones Act. If enough people knew what it really means, understood the implications, and yelled about it... Hawaii might actually survive!

[cynmkolohe]

Interesting post--will make note of this for future reading!

Do you know if there is any pending legislation dealing with these issues?

[PacificFlights]

Originally Posted by R_Cowgirl

Foreign ships cannot ship goods between US ports under this law, for one. So it keeps foreign ships that need to stop on the mainland from stopping here first, even though they are "driving right by." This means goods have to be re-packed and re-shipped on an American liner BACK to the islands. THAT is what the "cost of shipping" means... the goods from foreign ports are delayed because they have to pass us by and go all the way to LA or SF! And if a foreign ship picks up cargo in one of those ports, it could easily offload some cargo in Hawaii on its way back to Asia, but that can't happen. Only a US ship can do that.

</p>
I agree that the Jones Act is a bit outdated. Foreign made buses, trucks, taxis, trains, light rail cars, police cars, etc are all allowed to operate in the US. So why ships can't be made elsewher and use here is out of line.
But it's not completely true about shipping between ports. Foreign flagged ships can stop in Hawaii on their way to the mainland if they want. They don't because of cost. It would cost more for a ship from Asia to stop in Hawaii than to go to one port and unload. Since the majority of cargo is destined for the mainland, stopping in Hawaii to unload some conatiners isn't cost effective.
That portion of the Jones Acts is not out of line with all other regulations. A Mexico moving company can't pickup cargo in the US and transport it to another US location. A Canadian taxi can't come into the US and pickup a fare and drop it off somewhere else in the US. Even foreign airlines are prohibited from transporting passenegers picked up in the US to another US city if they did not stop in a non US airport enroute.
The Jones Act has faults but so does many other rules that apply to other areas. Can you imagine a company from China coming to the US and operating all the resorts and hotels under their county's rules and not the US? They can pay as little as they like, don't have to obey HI health care for worker rules, can operate without obeying regulations and codes. What do you think will happen if your employer could operate under the employment laws of Sri Lanka and not the US?

[ArkansasTraveler]

Originally Posted by PacificFlights

</p>
I agree that the Jones Act is a bit outdated. Foreign made buses, trucks, taxis, trains, light rail cars, police cars, etc are all allowed to operate in the US. So why ships can't be made elsewher and use here is out of line.
But it's not completely true about shipping between ports. Foreign flagged ships can stop in Hawaii on their way to the mainland if they want. They don't because of cost. It would cost more for a ship from Asia to stop in Hawaii than to go to one port and unload. Since the majority of cargo is destined for the mainland, stopping in Hawaii to unload some conatiners isn't cost effective.
That portion of the Jones Acts is not out of line with all other regulations. A Mexico moving company can't pickup cargo in the US and transport it to another US location. A Canadian taxi can't come into the US and pickup a fare and drop it off somewhere else in the US. Even foreign airlines are prohibited from transporting passenegers picked up in the US to another US city if they did not stop in a non US airport enroute.
The Jones Act has faults but so does many other rules that apply to other areas. Can you imagine a company from China coming to the US and operating all the resorts and hotels under their county's rules and not the US? They can pay as little as they like, don't have to obey HI health care for worker rules, can operate without obeying regulations and codes. What do you think will happen if your employer could operate under the employment laws of Sri Lanka and not the US?

Well you about nailed that one. Foreign airline pilots (all pilots) have to communicate in English when operating in a country not their own.

TSA -- [ Bunker (Fuel) Charges Fact Sheet ] this will give em something to do.

In July 2008 marine fuel prices in the transpacific freight market reached a record level of $767 per ton – up nearly 260% from $296 per ton at the beginning of 2007. That 18-month increase alone raised the fuel-related cost of an average Asia-US sailing from $704,000 to $1.83 million via the West Coast, and from $972,000 to $2.52 million via the East Coast/Gulf.

Them big boys even coming up out of Strait of Malacca are on a great circle course and they are not going to do a 500+ mile detour for one or twelve containers. AND at 6,000 teu + to the vessel it will not be calling podunk of the Pacific. It could not enter this pool called Honolulu harbor.

AND the longshoremen are union members under a contract and will receive the same rate of pay what ever the flag of the vessel calling.