American Feeder Lines is seeking a statutory waiver of the Jones Act, as part of a pilot program to implement a “marine highway” coastwise container feeder ship service. As part of the plan, AFL plans to replace these ships with US built vessels. But the long running Jones Act, is among the most of sacrosanct US maritime legislation, and waivers rare. Could this be the exception to the rule? By Stas Margaronis, AJOT Legislation will soon be sought in Congress to ask for a statutory wavier of the Jones Act, enabling four foreign built container ships to operate in US coastal trades. A Washington, DC consultant, who asked not to be identified, says he is assisting American Feeder Lines (AFL) in obtaining a waiver for four foreign-built container feeder ships to operate in the US domestic trade and says “a member of Congress will introduce legislation” to allow the company to bring in the ships. The consultant said officials at the US Department of Transportation (DOT) are aware of the proposal. On November 1st, American Feeder Lines, based in New York, issued a statement saying that it is seeking a Jones Act waiver “where a small number of foreign built vessels would be permitted to engage in coastwise trade as part of a pilot program.” AFL says it wants to demonstrate the viability of marine highway shipping with the idea that future ships would be built in the United States and replace the foreign built vessels. In response to the news of a possible waiver, Matthew Paxton, president of the Shipbuilders Council of America (SCA), told the AJOT SCA believes the rationale to waive the Jones Act for the four foreign-built container ships is to be a one time demonstration project for the viability of short sea shipping, also known as Marine highway shipping. “While we support short sea shipping and want to build new vessels for this energy efficient mode of transportation, we do not want to see the Jones Act undermined in anyway and we will scrutinize this proposal very carefully to make sure that does not happen.”

Statutory Jones Act Wavier

Getting a Jones Act waiver is no easy task. The Jones Act (cabotage) legislation is designed to ensure that exceptions (waivers) are for reasons of “national security,” which is a slightly broader term than “defense”. Traditionally Jones Act vessels have supported the US military efforts, as they are now in Afghanistan and Iraq, but also have been used in relief operations both home and abroad. Under the post 9-11 regulatory regime, the Jones Act is under the Department of Homeland Security and as such all waivers require the agency’s endorsement. But Homeland Security is something of a hodgepodge of organizations that previously had existed under other Federal agencies. This was evident in proposed Jones Act waiver when a MARAD spokesman quite correctly, said the waiver process involves agencies within the Department of Homeland Security: “The Maritime Administration does not have authority to waive the Jones Act. The agency does assist the Department of Homeland Security by searching for available Jones Act qualified vessels and making determinations on their availability if a waiver is sought. The Maritime Administration has not been asked to make an availability determination concerning any waiver application regarding American Feeder Lines.” The 1920 Merchant Marine Act (dubbed the Jones Act) mandates that vessels operating between US ports (including Puerto Rico and US possessions) must be built at U.S. shipyards and manned by US crews. A maritime consultant, formerly with the US Coast Guard, says that MARAD’s explanation is correct. He says both US Customs and the US Coast Guard, agencies within Homeland Security, would need to be involved in the process of seeking a waiver for the foreign-built container ships. The Jones Act has become a controversial issue, targeted for abolishment by both foreign interests and domestic shippers, who alternately seek either entrance into US trade lanes, or the perceived (but unproven)