Quick Definition

The Jones Act, formally known as the Merchant Marine Act of 1920, is a federal law that regulates maritime commerce in U.S. waters and between U.S. ports, requiring goods shipped between U.S. locations to be transported on ships that are built, owned, and operated by U.S. citizens or permanent residents.

Examples

• 1A shipping company operating between Miami and Puerto Rico must use U.S.-flagged vessels to comply with the Jones Act.
• 2An oil company transporting crude oil from Alaska to California must use a fleet that meets the Jones Act's requirements for U.S. ownership and crew.
• 3A manufacturer in Hawaii shipping products to the mainland U.S. must use Jones Act-compliant vessels, potentially increasing shipping costs due to limited availability of compliant ships.

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