Bill Overview
Title: Close Agency Loopholes to the Jones Act
Description: This bill eliminates several administrative exemptions to, and interpretations of, the Jones Act as enforced by U.S. Customs and Border Protection. The Jones Act requires that vessels transporting cargo domestically must be U.S.-built and generally owned and crewed by U.S. citizens.
Sponsors: Rep. Garamendi, John [D-CA-3]
Target Audience
Population: People in the maritime and shipping industries
Estimated Size: 500000
- The Jones Act generally affects the U.S. maritime industry, particularly businesses involved in domestic shipping.
- It mandates that vessels transporting goods between U.S. ports be U.S.-built and operated primarily by American citizens.
- Any changes in the Jones Act can affect shipping companies, shipbuilders, and crew members involved in the U.S. domestic shipping industry.
- The bill could also impact importers and exporters within the U.S. who rely on domestic waterways for transporting goods, affecting their logistics and costs.
- Communities and economies dependent on the domestic shipping industry, particularly coastal and island areas, might see impacts due to potential changes in shipping efficiency and cost.
Reasoning
- The population most affected includes small to medium-sized shipping companies, shipbuilders, sailors, and import-export businesses relying on domestic routes.
- The policy affects job stability and opportunities within the maritime industry, potentially increasing costs for businesses that must now comply with stricter requirements.
- This may lead to some resistance from smaller firms who benefited from the previous exemptions, while larger U.S.-based maritime companies might gain competitiveness.
- Communities peripheral to the shipping industry may see indirect effects through changes in local economic activity.
- Given the budget constraints, the policy will likely need to prioritize key economic areas and critical shipping routes for maximum impact.
Simulated Interviews
Maritime Logistics Manager (Houston, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 10/20
Statement of Opinion:
- The closure of these loopholes will increase our operating costs significantly.
- We will have to adjust our logistics and potentially charge higher rates.
- There's a risk of losing contracts to more competitively priced alternatives.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Shipbuilder (Seattle, WA)
Age: 32 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This policy helps increase demand for U.S.-built vessels, which is great for job security in shipbuilding.
- I am optimistic about more career opportunities opening up.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Import-Export Business Owner (New York, NY)
Age: 60 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 8/20
Statement of Opinion:
- Increased costs in shipping will inevitably mean higher prices for my goods.
- This could hurt small businesses like mine that heavily depend on competitive shipping costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 6 |
| Year 10 | 6 | 7 |
| Year 20 | 6 | 7 |
Worker Union Representative for Mariners (Honolulu, HI)
Age: 39 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy reinforces the need for American crews, which is beneficial for our members.
- We could see a positive shift in employment opportunities for local mariners.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 6 |
| Year 20 | 9 | 6 |
Dock Worker (Miami, FL)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- I worry about job security if shipping companies cut costs.
- There's potential for job growth locally, yet it's uncertain how quickly that'll happen.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Ship Captain (Norfolk, VA)
Age: 50 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- Stricter enforcement could streamline crew management, ensuring all-American crews.
- There's some concern about the transition period and adaptation costs.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Supply Chain Analyst (San Francisco, CA)
Age: 41 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 4.0 years
Commonness: 8/20
Statement of Opinion:
- Potentially higher domestic shipping costs could impact our delivery times and prices.
- We'll need to update our logistics network to accommodate changes efficiently.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 5 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Port Authority Official (New Orleans, LA)
Age: 55 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Ensuring compliance with the new policy will require additional resources and staff training.
- It could standardize operations but might complicate international logistics.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Freight Forwarder (Louisville, KY)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 7/20
Statement of Opinion:
- Adjusting to these regulatory changes will be challenging initially for coordinating shipments.
- Long-term benefits could be seen through clearer mandates and processes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Independent Maritime Consultant (Savannah, GA)
Age: 62 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- It's a chance for U.S. companies to strengthen their positions by meeting these new rules.
- Consulting demand may increase as companies navigate these changes.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Cost Estimates
Year 1: $25000000 (Low: $15000000, High: $35000000)
Year 2: $25000000 (Low: $15000000, High: $35000000)
Year 3: $25000000 (Low: $15000000, High: $35000000)
Year 5: $25000000 (Low: $15000000, High: $35000000)
Year 10: $25000000 (Low: $15000000, High: $35000000)
Year 100: $25000000 (Low: $15000000, High: $35000000)
Key Considerations
- The cost estimates do not include potential economic impacts on shipping communities and related industries.
- Potential job impacts need thorough assessments as some employees could face short-term disruptions while others might gain opportunities.
- Reactions from the maritime industry could influence overall cost and savings projections significantly.