Navigistics wilson gillette report dec 2019 and amsc analysis note. On a positive note for tanker owners, the usgusac trade pattern for cpp could. Appendix iv summarizes the requirements of jones act provisos and related laws, appendix v details our methodology, and appendix vi lists the ships in the alaskatrade jones act fleet in 1987. Industry us report us crude exports and the tanker market. Overall, the jones act fleet is responsible for over half a million u. Overall, there are more than 40,000 vessels in the jones act fleet, according to amp. The jones act requires goods or passengers moved in u.
Rather than maintaining a fleet of vessels that sits dormant until a period of deployment, the military can call on the jones act fleet on a temporary basis. Ship to wreck can the jones act tanker market keep. Section 27 of the merchant marine act is known as the jones act and deals with cabotage coastwise trade and requires that all goods transported by. To offer the widest variety of petroleum and chemical transportation solutions for customers, crowley has further committed its investment in the jones act and the revitalization of its product tanker fleet with the purchase of two u. Maritime law center, the jones act, november 1, 2016. New amo jobs as crowley completes acquisition of three. With the acquisition of these three tankers, the company now operates 40 jones actqualified large petroleum transportation vessels in the united states with a combined capacity of more than 12 million barrels. One widely acknowledged consequence of the jones act is that the usbuilt fleet is considerably older than the global, nonus built fleet. Kinder morgan kinder morgan continues to expand its. Legislative and regulatory background congressional research service 1 introduction the jones act, which refers to section 27 of the merchant marine act of 1920 p. The fleet also faces substantially higher operating expenses due to the cost of employing us citizens. The jones act ensures a strong and vibrant maritime industry, which helps ensure the united states maintains its expertise in shipbuilding and waterborne transportation.
The delivery marks another highpoint for crowleys petroleum services group as its tankers are at the forefront of the industry for. The water transportation segment is responsible for most of the economic contribution of the jones act fleet, accounting for 54 percent of employment and 78 percent of output. The jones act requires that all goods transported between u. The fleet, nearly 200 vessels strong in 2000, is now less than half that size. Some of these issues may be addressed in the coast guard and maritime transportation act of 2014 h. The jones act is a federal law that regulates maritime commerce in the united states. Among other purposes, the law regulates maritime commerce in u. Apts current fleet of sixteen medium range jones actqualified product tankers, each with 330,000 barrels of cargo capacity, is the largest and most modern in the industry. Kinder morgan to expand its fleet of jones act tankers. Under the terms of what is commonly called the jones act the formal name being the merchant marine act of 1920, 2 shipping between any two points in the united states is restricted to u.
Idle msc chemicals west coast clean usg crude oil 28 % 36 % 35 % 26 % 20 %. Terms of office in meba the meba membership referendum also yielded a longer term of elective office from three years to four, beginning with the terms of officials to be elected later this year. These tankers include nine stateoftheart vessels delivered between 2015 and 2017, which were constructed in u. Between 2006 and 2011, the jones acteligible fleet shrank by just over 17 percent. The merchant marine act of 1920 is a united states federal statute that provides for the promotion and maintenance of the american merchant marine.
Philadelphia, penn prweb april 15, 2016 crowley maritime corp. United states flag privatelyowned merchant flee maritime. As of december 15, 2019, there were some 24 container ships in the jones act fleet. Second eco class jones act product carrier in american.
Congress and subsequent modifications of international maritime regulationsnamely, the addition of regulations f and g to the international convention for the prevention of pollution from ships, adopted in 1973 and amended in 1978 marpol 7378resulted in a farreaching change in the design of tank vessels. The jones act was closely based on the federal employers liability act fela of 1908, which covers railroad employees. The mt pennsylvania and the mt florida engage in the marine transportation of crude oil, condensate and refined products in the united states, commonly referred to as the jones act trade, and are. Jones act in the market of petroleum product tankers. An economic analysis of the jones act mercatus center. Edited transcript of osg earnings conference call or. New jones act tankers are great for traders, lousy for owners. Its us flag fleet consists of 14 handysizemrs, plus 10 atbs the latter. Jones act tanker fleet deployment by main trades tankers and atbs crude tanker deployment back at 20 levels. Jones act tanker fleet deployment by main trades tankers and atbs 7 source. So far, the jones act mediumrange oil tanker fleet is pegged at about 44, with new ships on the way in 20142016. Petroleum tankers, chemical carriers, lng carriers, lnglpg. After pipeline explosion, business booms for jones act.
Due to their competitive advantage in labor costs and material inputs, asian countries make up the vast majority of the global oceangoing tanker market share, with korea at 60%, china at 30% and japan at 8% as of 20. This chapter examines the economic viability of the domestic jones act petroleum transportation industry 1 in light of the doublehull requirements of section 4115 of the oil pollution act of 1990 opa 90. Consolidated fleet summary and change list maritime. In total, osg has 10 vlccs, one ulcc, two ulcc fsos, one suezmax, nine aframaxes, two aframax size lightering vessels, nine panamax crude oil carriers, four lr1s and 23 product tankers. The merchant marine act of 1920, which is commonly referred to as the jones act, is a federal law that allows seamen to sue their employers for onthejob injuries caused by negligence on the part of vessel owners, companies, shipmasters, or fellow crew members.
American petroleum tankers apt is a subsidiary of kinder morgan terminals and is engaged in the marine transportation of crude oil, condensate and refined products in the united states domestic trade, commonly referred to as the jones act trade. American phoenix lands in siu fleet seafarers sail aboard. According to bloomberg vesseltracking data, about 27 jones act vessels were in service around the u. Ro tanker 25 2 9 7 57 jones act eligible dry bulk cargo. Theyre part of a growing fleet of socalled jones act ships, named for a law almost a century old that mandates any.
The second reason the jones act tanker fleet remains small is their high cost of operation compared to nonu. Sflag fleet overall containership dry bulk general generalcargo ro. We estimate supply and demand functions in this market, then use the estimates to compute consumer, producer, and total surplus in the presence and in the hypothetical absence of the jones act. Growth in oil activity stimulates orders for new jones act. Our active fleet includes tankers and articulated tug barges, of which 18 operate under the jones act and 2 operate internationally in the u. Since 2012, the capacity of the jones act fleet of tankers and large articulated tug barges atbs has increased by more than onethird, to 22. The apt tankers are on order at the general dynamics nassco shipyard in san diego. After jettisoning its international flag tanker business, the new osg is now a pure jones act operator.
The jones act fleet provides extra capacity and manpower that the military can call upon during deployments. Eias original report mentioned 56 jones act tankers handling. This is because the jones act, a 1920 law that seeks to protect u. The passage of the oil pollution act of 1990 opa 90 by the u. Possible jones act waivers future of jones act replacement of tankers with barges reduction in active seafarers role of domestic trade in u. Claims process for jones act maritime injury guide. Seafarers sail aboard new jones act tanker american phoenix lands in siu fleet the doublehulled tanker american phoenix above, in mobile, ala. The delivery marks another highpoint for crowleys petroleum services group as its tankers are at the forefront of the industry for their potential future conversion to lng. Research conducted for doublehull tanker legislation. Crowley takes delivery of louisiana, third jones act. Additional information on jones act vessels potential. In response to a congressional request, gao examined the effects of the jones act on alaska trade to determine the.
Jones act eligible vessels that are eligible to participate in domestic trade. The current usbuilt fleet has an average age of 33 years, versus years for the global fleet. For nearly 100 years the jones act has restricted the transportation of cargo between two points in the united states to ships that are u. Kinder morgan to expand its fleet of jones act tankers houston business wire kinder morgan energy partners, l. Navigistics wilson gillette report, june 2017 and amsc analysis. Claims process for jones act claims process for jones act if youre a qualified seaman and are injured on the job as a result of negligence by a vessels owner, officers, employer, or a fellow mariner, there are certain steps you must follow in order to file a legal claim against your employer under the jones act. Jones act fleet, newbuilds are once again on the rise. Psi, the sole operating subsidiary of philly shipyard asa. Navys position is clearrepeal of the jones act would hamper americas ability to meet strategic sealift requirements and navy shipbuilding. As of august 1995, the jones act fleet consisted of 222 tankers, tank barges, and itbs with a total capacity of 9. A burden america can no longer bear, does at least acknowledge that the total jones act fleet is around 40,000 vessels actually closer to 41,000, according to an october 2018 study, but it argues, of course, the primary objective of the law was to ensure a vibrant shipping industry as a pillar of u. Merchant marine policy the future of the jones act tank vessel fleet henry s. The first siu crew members aboard the jones act vessel included group photo, first. Although there are us crude exports and the tanker market the us flag, osgmanaged jones act mr overseas chinookhas been converted into a shuttle tanker.