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The U.S. Supply Chain Makes No Sense


Muda69
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1 hour ago, DanteEstonia said:

tHe mArKeT isn't going to change the fact that those boats can't get through the Panama Canal and reach the Eastern Seaboard. Getting rid of the Jones Act will not do anything at all for shipping costs. 

https://cei.org/studies/repeal-or-reform-the-jones-act/

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That is what has happened to the U.S. shipbuilding industry. Under the law’s supposed protection, the number of U.S. commercial shipyards has dwindled from 64 after World War II to barely one, Philly Shipyards, a subsidiary of a Norwegian company that uses South Korean designs and engines. It currently has no shipbuilding orders, and has begun to compete for Defense Department maintenance and repair contracts. Meanwhile, whole categories of ships, such as heavy lift, liquified natural-gas transport, and offshore construction vessels, are no longer made in the U.S. because of the Jones Act.[3] Any American who needs to use such a ship domestically must lobby Congress for a statutory exemption. 

Consequences for U.S. Commerce. The Jones Act’s proponents are fervent supporters of “buy American” but the law unintentionally favors foreign sellers over domestic ones. It is protectionism for foreign companies. Shipping rates on Jones Act routes are typically several times more expensive than rates in the competitive international market, especially in terms of cost per nautical mile travelled for a standard container. This is because federal law makes it almost three times more expensive to operate a ship domestically than internationally. The same shipping companies that charge nearly $3,000 to ship a container from Jacksonville to Puerto Rico charge half as much to ship that same container to nearby Dominican Republic.[4]

Consequences for National Security and Emergency Preparedness. The law has also failed its national security mission. The Defense Department prefers foreign transport ships because of their much lower cost, and the vast majority of the vessels chartered for sealift during the Gulf and Iraq Wars was foreign.[5] Even if U.S. commercial ships were affordable and available for military use, their military utility is fading fast: 21st century warfare requires transport ships that are fast and flexible, while the global maritime industry is heading in the other direction, with transport ships that are increasingly slower, bigger, and less maneuverable. As for national emergencies, every time one requires sealift the Jones Act needs to be waived so victims can get the relief they need from ships that are actually available.

Consequences for the U.S. Energy Sector. The impact of the Jones Act on American energy is particularly difficult to justify in today’s world of globally dominant North American oil production and falling prices. East Coast refineries are forced to import oil and gas from foreign countries while America’s own Gulf Coast suppliers drown in an ocean of cheap oil and gas, desperate for markets.[6] If it not for the Jones Act, America might be able to cut its imports of crude oil by half.  

Consequences for Puerto Rico. According to one study, the Jones Act is equivalent to a 64.6 percent tariff on domestic seaborne trade.[7] Puerto Rico, Hawaii, and Alaska can import whatever they want from America’s trading partners virtually tariff-free—but if they import anything from the mainland United States, they must pay a significant penalty. In some cases, the penalty is prohibitive: Puerto Rico is forced to get its energy from countries like Venezuela and Trinidad instead of from the United States. 

Recommendations. If reviving America’s shipbuilding and shipping industries ever became a national priority, the Jones Act would have to be repealed in its entirety. In the meantime, several reforms can be undertaken, including:

  • American-owned oceangoing vessels of all flags and origins—of which there are almost 1,000—should be exempted from the law so they can sail between American ports. This would essentially repeal the “American-build” requirement of the Jones Act, leaving the rest of it in place.
  • All energy shipments should be exempted from the Jones Act, so that American energy producers can ship directly to American consumers instead of having to ship to foreign countries while their potential American consumers have to find foreign sources to make up the shortfall. 
  • Shipping between U.S. ports and ports in Puerto Rico, Hawaii, and Alaska should be exempt from the Jones Act. 

For 100 years, the Jones Act has poisoned America’s maritime industry while imposing hidden costs on U.S. consumers. Its chief beneficiaries are foreign shippers whom the law in effect protects from American competition. Its only American beneficiaries are a small number of decrepit shipyards and shipping companies that depend entirely on the slow poison of its cartel restrictions, and the government officials who find short-term political benefit in subordinating the public interest to those special interests.

 

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10 hours ago, DanteEstonia said:

Looks like everyone's favorite Tory really did gut America. 

Hey @swordfish and @Impartial_Observer you got what you voted for. Enjoy your inflation.

Typical that a socialist like yourself supports government subsidies and heavy regulation in most if not all industries.

So you also believer the current wave of inflation was caused by Mr. Reagan ending subsidies?

Edited by Muda69
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On 7/30/2022 at 10:48 PM, DanteEstonia said:

Okay, so take it from someone with lived experience and something to contribute:

OK Mr. Supply Chain expert/Trucker/School Teacher.......

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1 hour ago, Muda69 said:

Typical that a socialist like yourself supports government subsidies and heavy regulation in most if not all industries.

Just in our important industries. 

1 hour ago, Muda69 said:

So you also believer the current wave of inflation was caused by Mr. Reagan ending subsidies?

Yes, ultimately. 

1 hour ago, swordfish said:

OK Mr. Supply Chain expert/Trucker/School Teacher.......

Did you film at the Long Beach Container Terminal? Do you you have a TWIC? When you do, let me know, then you'll know. 

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18 hours ago, DanteEstonia said:

But my car was made in 2021.

Oh Wow!  Mine too.

Just now, Muda69 said:

What year and model?

Jeep Grand Cherokee - 80th Anniversary Edition.  Black on black.

 

 

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19 hours ago, DanteEstonia said:

But my car was made in 2021.

What is your point you sick fuck?

Are you trying to impress me with your wealth you sick fuck?

Are you insinuating I can’t afford a year old Subaru you stupid fuck?

 I don’t drive a 20 year old truck you stupid fuck.

I’ve never had COVID you stupid fuck?

What is your fascination with me you sick fuck?

Congrats on your new Subaru, man I can only aspire to such heights!

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