Friday, February 10, 2017

Feds proposing maritime rule changes

While the country wrestles with President Trump's executive orders on border security, lesser known legislative changes proposed by U.S. Customs and Border could have profound consequences on Gulf Coast shipbuilders and related industries. The proposals to close “loopholes” contained within the Merchant Marine Act of 1920 (a.k.a. Jones Act) are designed to give preference to U.S. workers and shipbuilders over foreign companies and foreign labor, according to supporters. The Jones Act is primarily concerned with ensuring that all goods transported by water between U.S. ports are carried by U.S.-flagged ships, manufactured in the U.S., owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. This in turn supports domestic shipbuilding, but a so-called loophole in the law currently allows foreign companies to manufacture ships in the United States and allows all companies to hire foreign workers. However, critics say that any changes to the law would leave the deep-water construction industry short of ships to continue operating effectively. (Source AL.com 02/06/17)