The Merchant Marine Act of 1920, commonly known as the Jones Act, was designed to support the U. S. domestic maritime industry after World War I.
Section 27 of the law mandates that all goods transported by water between U. S. ports must be carried on ships that are built, owned, registered, and crewed by U.
S. citizens. While intended to maintain a strong national defense fleet and protect American shipbuilding, the long-term economic consequences have been fiercely debated.
Today, U. S. -built ships are dramatically more expensive to construct and operate than their foreign counterparts.
As a result, domestic shipping rates have skyrocketed, isolating non-contiguous territories like Hawaii, Alaska, and Puerto Rico. Instead of modernizing the domestic fleet, critics argue the act has shrunk the U. S.
merchant marine to a tiny fraction of its former self, forcing companies to move freight via overland trucks and trains whenever possible to bypass maritime restrictions.