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De Omnibus Dubitandum - Lux Veritas

Tuesday, April 22, 2014

Antiquated Law Adds Billions to Fuel Costs

By William F. Shughart II

An obscure 1920 law is costing Americans billions of dollars a year in higher fuel costs.  The Jones Act requires that cargo shipped from one US port to another be carried on a US-registered vessel, built, owned and crewed by Americans. This protectionist law was designed to support a shipbuilding industry that no longer exists—but inertia and labor-union muscle keep it on the books.

The law mainly makes the news in time of crisis........But every day the law adds to energy bills because it stops foreign-flagged tankers and barges from shipping among US ports. They can’t help move crude from Gulf Coast ports to East Coast refineries, or supply Florida with oil from Louisiana and Texas ports or ship oil between West Coast and Alaskan ports.  Without the Jones Act, in short, we’d have significantly greater domestic oil production……To Read More…..

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