A political action group backed by a conservative billionaire with interests in the energy sector wants a suspended law protecting U.S.-flag shipping permanently repealed.
Americans for Prosperity, the flagship advocacy organization backed by conservative industrialist Charles Koch, said it plans a six-figure digital ad campaign urging Congress to permanently repeal the Jones Act.
The century-old law requires ships carrying cargo between American ports to be U.S.-built, owned, crewed and flagged.
President Donald Trump in March temporarily suspended the Jones Act for 60 days over concerns that the Iran war could result in price-gouging and shortages of fuel, fertilizer, and other vital commodities. The waiver, extended to 90 days, permits foreign-flag ships to operate in commerce between U.S. destinations, such as carrying fuel from the Gulf to eastern markets.
The waiver provided temporary but modest economic benefits – primarily by increasing shipping options – but did not significantly reduce consumer fuel prices in the immediate term, analysts say. The suspension also created uncertainty for the U.S. maritime industry over jobs and for carriers engaged in coastwise trade.
Wichita-based Koch Industries, with annual revenues of $125 billion, has operations in petroleum refining, chemicals and fertilizer production, areas where it would likely benefit from a Jones Act repeal.
“The century-old shipping mandate continues to needlessly drive up the cost of fuel, food, and energy for American families,” the org said in a release. The campaign pairs targeted digital advertising with a nationwide citizens’ effort writing letters to Congress to demand relief.
Trump issued the emergency waiver after Iran closed the Strait of Hormuz, the gateway to the Persian Gulf through which 20% of the world’s crude oil passes.
The campaign launches as inflation and rising consumer prices for food, gas and other staples has made affordability a central voter issue ahead of the midterm elections. It follows a May 6 coalition letter urging Congress to repeal the Jones Act as part of AFP’s larger affordability agenda.
“For more than a century, Washington has forced families to pay a hidden tax every time goods move between our own ports, and it is way past time to put an end to this failed regulation that has decimated the industry it was intended to help,” said AFP Chief Government Affairs Officer Brent Gardner, in a release. “You cannot claim to care about the cost of living while defending a law you have to suspend every time families need relief. Our message is simple: with a single vote, Congress can lower costs for every household in the country. It’s time to repeal the Jones Act.”
The campaign of digital ads and grassroots efforts is focused on key states and districts, in particular members of the House Committee on Transportation and Infrastructure, “as well as senators who campaign on lowering costs for working families. The goal is to build support for permanent repeal.”
AFP said that the waiver shows a fully booked Jones Act fleet was supplemented and not displaced by foreign vessels.
Read more articles by Stuart Chirls here.
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