The Jones Act: How a 1920 Shipping Law Strangles Puerto Rico's Economy

The Jones Act is one of the most economically destructive laws affecting Puerto Rico — a century-old statute that makes everything more expensive on an island that can least afford it.

The Law:
The Merchant Marine Act of 1920 (commonly called the Jones Act, after its sponsor Senator Wesley Jones of Washington state) requires that all goods shipped between U.S. ports be transported on vessels that are:
1. Built in the United States (U.S.-built ships cost 4-5 times more than foreign-built ships)
2. Owned by U.S. citizens or companies
3. Crewed by U.S. citizens or permanent residents
4. Registered (flagged) in the United States

Impact on Puerto Rico:
Puerto Rico imports approximately 85% of its food and virtually all manufactured goods, fuel, and construction materials. The Jones Act means:

1. Higher shipping costs: U.S.-flagged, U.S.-built ships are significantly more expensive to operate than foreign-flagged vessels. Estimates of the additional cost range from $1.5 billion to $2.5 billion annually
2. Higher food prices: Food costs in Puerto Rico are estimated to be 20-40% higher than they would be without the Jones Act
3. Higher fuel costs: All fuel must arrive on Jones Act-compliant vessels, increasing energy costs
4. Higher construction costs: Building materials cost more, making housing more expensive and infrastructure repair more costly
5. Higher medicine costs: Pharmaceutical imports and medical supplies are more expensive
6. Limited shipping options: Fewer carriers serve Puerto Rico because of the compliance requirements, reducing competition and further increasing costs
7. Slower delivery: Jones Act requirements can slow shipping compared to direct international routes

Who Benefits:
The Jones Act primarily benefits:
- U.S. shipbuilding companies (concentrated in a few states)
- U.S. maritime unions (crew requirements protect American jobs — in the maritime industry)
- A small number of Jones Act-compliant shipping companies that dominate Puerto Rico trade

Who Pays:
- Every Puerto Rican consumer pays higher prices for food, fuel, and goods
- Puerto Rican businesses face higher input costs, reducing competitiveness
- The Puerto Rico government pays more for infrastructure projects
- Hospitals pay more for medical supplies and equipment
- Schools pay more for educational materials

The Colonial Dimension:
The Jones Act is colonialism codified in shipping law:
1. No representation: The law was passed by a Congress in which Puerto Rico had no vote. It remains in effect because Puerto Rico has no voting members to amend it
2. Territorial application: The law applies to Puerto Rico because it is a U.S. territory — independent nations in the Caribbean are not subject to it
3. Exception denied: Puerto Rico has repeatedly requested Jones Act exemptions, particularly after Hurricane María, but Congress has refused. Even temporary waivers have been denied or granted too late to help
4. Hurricane María: After the hurricane, the Jones Act initially prevented foreign ships from delivering emergency supplies. A brief waiver was eventually granted, but only after public outcry
5. Neighboring comparison: The Dominican Republic, Jamaica, and other Caribbean nations pay lower shipping costs because they can use any international carrier

Reform Efforts:
- Multiple bills have been introduced in Congress to exempt Puerto Rico from the Jones Act — none have passed
- The U.S. maritime industry (a powerful lobby) opposes any exemptions
- Even some pro-statehood Puerto Rican politicians have advocated for Jones Act reform
- Economic studies consistently demonstrate the law's negative impact on Puerto Rico
- The GAO has studied the issue multiple times without recommending change