| |  Print This Article

TOTE Ship Order May Sink GAO Puerto Rico Jones Act Study

BY MICHAEL HANSEN - The influential British maritime journal Lloyd’s List published three articles today regarding the long awaited US. Government Accountability Office (GAO)’s release of a report on their study of the impact of the Jones Act on Puerto Rico and how it may be influenced by TOTE Inc.’s recent announcement of a new building order for two 3,100 twenty-foot equivalent unit (TEU) containerships for the Puerto Rico trade.

 

TOTE Inc. announced on December 5th that they had placed the two-ship order with General Dynamics NASSCO Shipbuilding yard in San Diego, California, with an estimated cost of at least $175 million apiece.  We have estimated the additional cost of U.S. ship construction will impose more than $600 million on Puerto Rico consumers over the life of the two ships.

 

The GAO Puerto Rico Jones Act study was requested by the Resident Commissioner (also known as Congressman or Representative) Pedro Pierluisi in late 2011.  The latest advice from Puerto Rico indicates the GAO will release their Puerto Rico Jones Act study on Ash Wednesday, February 13, 2013.

 

The Lloyd’s List articles contend that TOTE ship order may have been timed to influence the GAO conclusions especially as it relates to the U.S.-build requirement of the Jones Act.  Although the Lloyd’s List articles were limited to the Puerto Rico, Matson Inc. also added fuel to the fire by letting it be known on November 25, 2012, that they are budgeting $400 million to build two 3,000 TEU containerships sometime in the next two to five years for the Hawaii trade.

 

The Jones Act requires that a vessel must be U.S.-built, U.S.-flag, U.S.-owned and U.S.-crewed in order to carry cargo between two places encompassed by the coastwise laws of the U.S.  The U.S. built requirement adds between 300 and 500 % to the cost of constructing a deep draft ship, while the U.S. flag, owned and crew requirements adds about 20% to the operating cost of the ships.

 

We will have to wait and see what the GAO releases in February to know whether or not the TOTE and Matson Jones Act ship construction announcements have influenced the outcome of their study on the impact of the Jones Act on Puerto Rico.

 

 

Michael N Hansen is the President of the Hawaii Shippers Council. Reach him at pacmar@hawaiiantel.net

 

The Hawaii Shippers Council (HSC) is a business league organization incorporated in 1997 to represent cargo interests – known as “shippers” – who tender goods for shipment with the ocean carriers operating the Hawaii trade. 

Short URL: http://www.hawaiireporter.com/?p=252432

10 Comments for “TOTE Ship Order May Sink GAO Puerto Rico Jones Act Study”

  1. Yeah? So what? You think the foreign flagged ships that would carry cargo to PR were built for free? These ships cost a bit more, but they are built by American, in an American shipyard, crewed by Americans, all of whom pay taxes to America. and they take their salary home, and spend it in America. The money stays here. Let Evergreen carry freight from Miami to PR and all the money goes to China. Which would I prefer as an American? Duh? The Jones Act protects American Jobs and keeps the money where it belongs, in America.

  2. learn about best custom essay writing services from you. I'll be using it now. Thanks a lot and continue your awesome work!

  3. In which do you attracted the summary? We would like to have in mind the dissertation service details that made anyone arrive at this specific principle? You may can reveal a few tips? This post looks somewhat biased. The idea would be excellent when you can substantiate the claim.

  4. The information and the detail were just perfect. I think that your perspective is deep, its just well music free videos

  5. These ships cost a bit more, but they are built by American, in an American shipyard, crewed by Americans, all of whom pay taxes to America. and they take their salary home, and spend it in America. The money stays here. Let Evergreen carry freight from Miami to PR and all the money goes to China.
    opcionesbinariasray.com/

  6. In which do you drawn the summary? We would like to have in thoughts the thesis support information that created anyone reach this particular principle? You may can expose a few tips? This publish looks somewhat one-sided. The concept would be outstanding when you can determine the declare.

  7. This is very nice resource of education. I like it your content thanks..
    professional research paper writers

You must be logged in to post a comment Login

News Cycle on The Rick Hamada Show








Recently Commented

  • Blue Eyed Devil: Are you talking about Obama or Karl Marx?
  • juan achi: The true traitors are those self-important brutes in this building who dismantle that Fourth amendment in...
  • Larry: Taking money from those that earn it and giving it to those that don't . The guy is a re-distributor of...
  • Brick Sealers: Brick Sealers Stone Sealers and Brick Sealers stocked by and available from Monaseal. Driveway...
  • Samuel: So what exactly are our Democrat delegation to US congress doing?. Why don't they introduce a bill that...