American Maritime Officer: August 2020

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New study finds Jones Act does generate thousands of jobs, does not impact the cost of living in Hawaii

The Jones Act is critical to American security and prosperity, delivering over 650,000 U.S. jobs, a reliable supply chain, and protection to our nation's borders and national security interests. These benefits do not stop within the contiguous United States - and are realized even more in states like Hawaii, 2,500 miles from the U.S. mainland and home to 13,000 jobs related to the Jones Act shipping industry.

However, a number of recent studies and articles have questioned the value of the Jones Act to Hawaii. Their claims of negative impact are not supported by the facts and ignore the examples of the positive role of the Jones Act. In response, Reeve & Associates and TZ Economics produced a fact-based analysis of recent developments in the U.S. mainland/Hawaii liner shipping market in order to determine how and to what extent shipping services provided in that market impact the people and economy of Hawaii, and, in particular, the cost of living in Hawaii.

Findings demonstrate a negligible impact of Jones Act carriers' ocean shipping services on the price of goods shipped to Hawaii from the U.S. mainland, and instead illustrate positive economic contributions, including job creation, new infrastructure investments, and a reliable pipeline for critical consumer and industrial goods moving to and from the Islands. Read more...

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