Thread: El Faro Sinking
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Old 10-10-2015, 03:07 AM   #92
Marin
Scraping Paint
 
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Join Date: Oct 2007
Posts: 13,745
A definition....

"The Merchant Marine Act of 1920, also known as the Jones Act, is a United States federal statute that provides for the promotion and maintenance of the American merchant marine. Among other purposes, the law regulates maritime commerce in U.S. waters and between U.S. ports. Section 27 of the Jones Act, deals with cabotage (i.e., coastal shipping) and requires that all goods transported by water between U.S. ports be carried on U.S.-flag ships, constructed in the United States, owned by U.S. citizens, and crewed by U.S. citizens and U.S. permanent residents. The Act was introduced by Senator Wesley Jones.

"Cabotage is the transport of goods or passengers between two points in the same country, alongside coastal waters, by a vessel or an aircraft registered in another country. Originally a shipping term, cabotage now also covers aviation, railways, and road transport. Cabotage is "trade or navigation in coastal waters, or the exclusive right of a country to operate the air traffic within its territory".

"In the context of "cabotage rights," cabotage refers to the right of a company from one country to trade in another country. In aviation terms, for example, it is the right to operate within the domestic borders of another country. Most countries enact cabotage laws for reasons of economic protectionism or "national security."

"The cabotage provisions relating to the "Jones Act" restrict the carriage of goods or passengers between United States ports to U.S.-built and flagged vessels. It has been codified as portions of 46 U.S.C. Generally, the Jones Act prohibits any foreign built or foreign flagged vessel from engaging in coastwise trade within the United States. A number of other statutes affect coastwise trade and should be consulted along with the Jones Act.... The steel of foreign repair work on the hull and superstructure of a U.S.-flagged vessel is limited to ten percent by weight.

"Ships built to satisfy the Jones Act may cost 3-4 times more than ships built in Korean or Japanese yards. The most expensive Jones Act ship is the tanker Liberty Bay."
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