This unfortunate reality demands a reassessment of U.S. maritime policy, a logical starting point for which should be the Jones Act. Passed in 1920 but with origins dating back to the late 1700s, the law restricts domestic shipping to vessels constructed in U.S. shipyards.
Theoretically, such protectionism ensures a vibrant domestic shipbuilding industry. In reality, however, U.S. shipyards’ competitiveness has withered to the point that their vessels cost several times more than those constructed abroad. Low shipbuilding output reflects a lack of demand for U.S. shipyards’ expensive offerings.
In addition to being a shipbuilding failure, meanwhile, the Jones Act also inflicts economic harm by raising the cost of water transportation. That’s no small thing for a vast country like the United States with thousands of miles of coastline and rivers. The law is a double whammy.
None of this is to let China off the hook, whose subsidies deserve to be called out. But the United States must also get its own house in order. An excellent place to start would be significantly reforming, if not entirely repealing, the costly and failed Jones Act.