So, @TheAtlantic ran a piece from Scott Lincicome on the #JonesAct. Scott is with @CatoInstitute & @CatoTrade and I would include him on this tweet, but he has me blocked.
Maybe that is because I am going to show how many things he gets wrong or misrepresents in his piece.
Maybe that is because I am going to show how many things he gets wrong or misrepresents in his piece.
Alright...here is my breakdown.
1. Direct Costs. 5x cost in construction.
As usual, Scott does not account for the massive subsidies and offsets provided by China, Japan & Korea that build 94% of the world's ships.
theatlantic.com/ideas/archive/…
1. Direct Costs. 5x cost in construction.
As usual, Scott does not account for the massive subsidies and offsets provided by China, Japan & Korea that build 94% of the world's ships.
theatlantic.com/ideas/archive/…
2. Why short-sea shipping is not used. It is TIME!
Why ship something from a site in rural Georgia to Boston by short-sea? You have to truck it to Savannah, wait & load on a ship, sail it with multiple stops, arrive in Boston and then truck...when you can just truck it.
Why ship something from a site in rural Georgia to Boston by short-sea? You have to truck it to Savannah, wait & load on a ship, sail it with multiple stops, arrive in Boston and then truck...when you can just truck it.
4. Perhaps if we provided the same benefits to trucking and rail that we do to shipping, we would see more short-sea shipping. However, that has not been the case; and that is why you see more cars and trucks on the roads on a system that eliminated short-sea shipping.
5. We built LNG carriers in the 1970s/80s under the Merchant Marine Act of 1936. But we did not start exporting LNG in any quantity until 2016.
I have supported a one-time build waiver to bring one LNG into the US fleet (because that is all you need).
I have supported a one-time build waiver to bring one LNG into the US fleet (because that is all you need).
6. Scott should really look at the issue of Wind Turbine installation to realize that the number of ships and mariners qualified to do this are in short supply around the world.
spglobal.com/marketintellig…
spglobal.com/marketintellig…
7. Because of the Jones Act of 1920, we have the Foreign Dredge Act of 1906? He may need to check his math!
He wants the US to give up its monopoly on domestic dredges to a Dutch of Chinese duopoly of dredges.
He wants the US to give up its monopoly on domestic dredges to a Dutch of Chinese duopoly of dredges.
8. Hurricanes Maria and Fiona hit Puerto Rico the issue was not the transportation of goods into the island, but the breakdown of the inland transportation system. That has nothing to do with the Jones Act.
9. Average age of Jones Act ships is 20 years.
World Average is 19.7 years.
GREAT SCOTT 0.3 years!
World Average is 19.7 years.
GREAT SCOTT 0.3 years!
10. "The competitive international market"? Three countries build 94% of the world's ships - China, Korea & Japan. There is no way we can compete when China gives $132B in subsidies from 2010 to 2018 or Korea $2B last year.
maritime-executive.com/article/south-…
maritime-executive.com/article/south-…
11. The
@PhillyShipyard
example is true. But this is what happens when you turn off an assembly line and come back to it a decade later.
Also, you redesign the ships to run on LNG vice diesel fuel. The same inflation is happening in all shipyards.
phillyshipyard.com/commercial-pro…
@PhillyShipyard
example is true. But this is what happens when you turn off an assembly line and come back to it a decade later.
Also, you redesign the ships to run on LNG vice diesel fuel. The same inflation is happening in all shipyards.
phillyshipyard.com/commercial-pro…
12. So what does Scott, @cpgrabow, @CatoInstitute & @CatoTrade want for US shipping, is to bring in foreign ships, crews & laws. How would US truckers compete in a similar scenario?
freightwaves.com/news/borderlan…
freightwaves.com/news/borderlan…
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