Absurd 200-Foot ‘Railway’ Demolished After Court Closes Shipping Loophole
thedrive.com
thedrive.com
Sounds like a terrible legacy law that needs to be reworked.
(Cruise ships can't just do Florida to Puerto Rico to Florida nor California to Hawaii to California, for two instances, unless they are US flagged and most of the cruise ship companies are not US flagged. To be fair, the company flags that aren't historic like Holland America's actual Dutch origins are mostly tax dodges, but the Jones Act isn't the best way to discourage tax dodgers.)
> The verdict required American Seafoods and its subsidiaries to find a new way to ship seafood into the United States, bringing the Bayside Canadian Railway's usefulness to an end.
It looks like the "railway" owner solved the problem by switching to Russian-sourced seafood (Jones act applies to shipments between US ports): https://www.maritime-executive.com/article/cbp-bayside-canad...
Sounds anti competitive and not really like a free market. China vibes.
Logical reasoning suggests that the author believes that the Jones Act is un-American. I'm not stating my personal opinion on the Jones Act itself but pointing out that the regulation of international and interstate commerce is, by definition, as American as it gets. It was uncontroversial back then and it is uncontroversial now. The Congress can pass these laws. There aren't a whole lot of things that are spelled out in the unamended constitution, but this is one of them. Whether they should maintain this particular law is a totally different issue.
Also the jones act not only requires the vessel to be US Flagged, but it must also be wholely owned by citizens of the united states, and either be US built or one of the following exceptions:
(i) was captured in war by citizens of the United States and lawfully condemned as prize;
(ii)was adjudged to be forfeited for a breach of the laws of the United States; or
(iii)qualifies as a wrecked vessel under section 12107 of this title;
The net result is that nearly half the US Flagged merchant fleet is not even Jones Act Eligible. Which seems pretty absurd.
In my Google, I did find an interesting Yale Law Journal [1] article that mentioned this case, that when on to say that repealing the Jones Act is basically DOA due to lobbying interests.
[1] The Yale Law Journal https://www.yalelawjournal.org The Neglected Port Preference Clause and the Jones Act
If the courts actually want to discourage this behaviour, they should have levied the fine