NEW EY Study: Jones Act Shipping – More Affordable and Reliable Delivery for Puerto Rico
Comprehensive study indicates global shipping rates increased 27 times more than rates in the Caribbean in recent years
WASHINGTON – Today, the Transportation Institute (TI) released a comprehensive study by Ernst & Young (EY) evaluating the Jones Act and its implications on freight rates, container availability, port congestion, and carrier performance in the Caribbean Region relative to global averages. The study evaluated the timeframe between January 2019 and December 2021 and captured the heightened volatility of freight movement during the peak of the COVID-19 pandemic.
“Across multiple metrics, shippers overwhelmingly associated better carrier performance with Jones Act carriers than non- Jones Act ones,” according to the study. It also concluded that “in addition to providing stability and security in the region, the Jones Act shipping industry continues to provide substantial economic benefits to Puerto Rico.”
“Jones Act carriers are dedicated to Puerto Rico and help local businesses make goods more affordable and the supply chain more reliable compared to our global competitors,” said James L. Henry, Chairman and President of the Transportation Institute. “While the entire global supply chain was disrupted during the pandemic, our Jones Act carriers proved to be 27 times more affordable and 8 times more reliable than non-Jones Act carriers.”
Key Findings:
Global shipping rates increased 27 times more than rates in the Caribbean Region
Global shipping vessel delays were 8 times more than in the Caribbean Region
Jones Act Economic Impact on Puerto Rico
Over 2000 jobs
$96 million in wages
$221 million in economic output
About the Study:
EY engaged in primary data collection through a survey of 49 companies that ship to and from the continental United States and the Caribbean. The survey gathered information from shippers on advantages or impediments that they experienced while shipping via Jones Act and non-Jones Act carriers with respect to freight and shipping cost, the availability of containers, and the resiliency and adaptability in carrier customer service models to meet the COVID-19 pandemic and supply chain challenges. The study also evaluated the economic contribution of the Jones Act shipping industry in Puerto Rico based on direct, indirect and induced contributions.
An Executive Summary of the study is available HERE.
An EY analyst can be made available for a background interview upon request: [email protected]
###
About the Transportation Institute (TI)
The Transportation Institute (TI) was established in 1967 as a non-profit organization dedicated to maritime research education and promotion. The Institute participates in all phases of the nation’s deep-sea, foreign and domestic shipping trades, and barge and tugboat operations on the Great Lakes and on the vast network of America’s inland waterways. Many member company vessels are contracted to the U.S. military services. All are of U.S. registry — crewed by American citizens operating under the world’s highest safety standards, and proudly flying the American flag. With offices on the East and West coasts, Transportation Institute supports a wide range of programs that promote the strength of America’s capability. For more information please visit: (English) DedicatedToPuertoRico.org / (Spanish) DedicadosaPuertoRico.pr
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional
Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes.The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
jones act carriers, what is jones act puerto rico, shipping pr, puerto rico and the jones act, pr jones act, jones act suspension, puerto rico shipping news today, the jones act of puerto rico, jones act puerto rico shipping, competitive price accurate delivery, the jones act and puerto rico, pr maritime, jones act effect on puerto rico, jones act impact on puerto rico economy shipping costs, jones act impact on puerto rico shipping costs, jones act and puerto rico, act jones, jones act in puerto rico, jones act shipping puerto rico, what is the jones act for puerto rico, the jones affect, what is the jones act in puerto rico, puerto rico shipping law, jones act 1917 shipping
Understanding the Jones Act: Overview and Implications
The Jones Act, officially known as the Merchant Marine Act of 1920, is a federal law that regulates maritime commerce in the United States. It mandates that goods transported between U.S. ports be carried on ships that are owned, built, and crewed by Americans. This legislation aims to support the U.S. maritime industry and ensure national security by maintaining a robust shipping fleet.
The implications of the Jones Act are significant, particularly for territories like Puerto Rico, where it affects shipping costs and service reliability. By requiring the use of U.S.-flagged vessels, the Act can lead to higher freight rates compared to foreign shipping options. However, it also ensures that local economies benefit from a dedicated shipping industry, fostering job creation and economic stability.
Economic Benefits of the Jones Act for Puerto Rico
The Jones Act provides substantial economic advantages to Puerto Rico by ensuring a consistent supply of goods and services through U.S. carriers. This stability is crucial for local businesses, as it helps to keep shipping costs manageable and ensures timely deliveries, which are essential for maintaining inventory and customer satisfaction.
Moreover, the economic impact extends beyond just shipping costs. The presence of Jones Act carriers supports local employment and contributes to the overall economic health of the region. Studies have shown that these carriers often invest in the local economy, providing jobs and supporting ancillary services that further enhance Puerto Rico's economic landscape.
Comparative Analysis: Jones Act vs. Non-Jones Act Shipping
When comparing Jones Act carriers to their non-Jones Act counterparts, significant differences in service reliability and cost-effectiveness emerge. The recent Ernst & Young study highlights that while global shipping rates have surged, the rates for Jones Act carriers have remained relatively stable, providing a more affordable option for Puerto Rican consumers.
This stability is particularly important in times of global economic uncertainty, where non-Jones Act shipping may face disruptions or increased costs. The reliability of U.S. carriers under the Jones Act ensures that Puerto Rico can maintain its supply chains without the volatility often associated with international shipping logistics.
The Future of Shipping in Puerto Rico: Challenges and Opportunities
The future of shipping in Puerto Rico presents both challenges and opportunities, particularly in light of ongoing discussions about the Jones Act. While some advocate for reforming the Act to allow for more competition from foreign carriers, others argue that maintaining the current framework is essential for economic stability and security.
As the shipping landscape evolves, stakeholders must navigate these discussions carefully. Opportunities for innovation in shipping practices and technology could enhance the efficiency of Jones Act carriers, ensuring that they remain competitive and continue to serve the unique needs of Puerto Rico's economy.
jones act carriers, what is jones act puerto rico, shipping pr, puerto rico and the jones act, pr jones act, jones act suspension, puerto rico shipping news today, the jones act of puerto rico, jones act puerto rico shipping, competitive price accurate delivery, the jones act and puerto rico, pr maritime, jones act effect on puerto rico, jones act impact on puerto rico economy shipping costs, jones act impact on puerto rico shipping costs, jones act and puerto rico, act jones, jones act in puerto rico, jones act shipping puerto rico, what is the jones act for puerto rico, the jones affect, what is the jones act in puerto rico, puerto rico shipping law, jones act 1917 shipping, are there reliable maritime connectivity options
Understanding the Jones Act: Overview and Implications
The Jones Act, officially known as the Merchant Marine Act of 1920, is a federal law that regulates maritime commerce in the United States. It mandates that goods transported between U.S. ports be carried on ships that are owned, built, and crewed by Americans. This legislation aims to support the U.S. maritime industry and ensure national security by maintaining a robust shipping fleet.
The implications of the Jones Act are significant, particularly for territories like Puerto Rico, where it affects shipping costs and service reliability. By requiring the use of U.S.-flagged vessels, the Act can lead to higher freight rates compared to foreign shipping options. However, it also ensures that local economies benefit from a dedicated shipping industry, fostering job creation and economic stability.
Economic Benefits of the Jones Act for Puerto Rico
The Jones Act provides substantial economic advantages to Puerto Rico by ensuring a consistent supply of goods and services through U.S. carriers. This stability is crucial for local businesses, as it helps to keep shipping costs manageable and ensures timely deliveries, which are essential for maintaining inventory and customer satisfaction.
Moreover, the economic impact extends beyond just shipping costs. The presence of Jones Act carriers supports local employment and contributes to the overall economic health of the region. Studies have shown that these carriers often invest in the local economy, providing jobs and supporting ancillary services that further enhance Puerto Rico's economic landscape.
Comparative Analysis: Jones Act vs. Non-Jones Act Shipping
When comparing Jones Act carriers to their non-Jones Act counterparts, significant differences in service reliability and cost-effectiveness emerge. The recent Ernst & Young study highlights that while global shipping rates have surged, the rates for Jones Act carriers have remained relatively stable, providing a more affordable option for Puerto Rican consumers.
This stability is particularly important in times of global economic uncertainty, where non-Jones Act shipping may face disruptions or increased costs. The reliability of U.S. carriers under the Jones Act ensures that Puerto Rico can maintain its supply chains without the volatility often associated with international shipping logistics.
The Future of Shipping in Puerto Rico: Challenges and Opportunities
The future of shipping in Puerto Rico presents both challenges and opportunities, particularly in light of ongoing discussions about the Jones Act. While some advocate for reforming the Act to allow for more competition from foreign carriers, others argue that maintaining the current framework is essential for economic stability and security.
As the shipping landscape evolves, stakeholders must navigate these discussions carefully. Opportunities for innovation in shipping practices and technology could enhance the efficiency of Jones Act carriers, ensuring that they remain competitive and continue to serve the unique needs of Puerto Rico's economy.
