The Jones Act:

Impact on Alaska Transportation and U.S. Military Sealift Capability

RCED-88-107: Published: Sep 30, 1988. Publicly Released: Oct 17, 1988.

Additional Materials:

Contact:

Office of Public Affairs
(202) 512-4800
youngc1@gao.gov

In response to a congressional request, GAO examined the effects of the Jones Act on Alaska trade to determine the: (1) economic costs of the act's requirement that only U.S. vessels carry cargo between points in the United States; and (2) impact of this requirement on achieving national defense objectives.

GAO found that: (1) the requirement increased annual transportation costs in Alaskan trade by about $163 million; (2) a new crude oil pipeline from California to Alaska could reduce the need for tanker transportation; and (3) the increased costs for Alaskan oil reduced Alaskan royalties and severance taxes by $37 million per year. GAO also found that: (1) U.S. military strategy relied heavily on the use of U.S.-flag ships to move military supplies abroad in case of war; (2) the U.S.-flag fleet declined from 1,050 ships in 1950 to 365 in 1987; (3) the number of positions for U.S. merchant mariners declined from 56,629 in 1950 to 10,376 in 1987; (4) although admitting foreign-built ships to Alaskan trade would probably not change the number of U.S.-flag ships in that trade, it might reduce the number of positions for U.S. merchant mariners; and (5) replacing existing ships with foreign ships would reduce the shipyard mobilization base.

Sep 14, 2016

Sep 2, 2016

Aug 8, 2016

Jul 28, 2016

Jul 13, 2016

Jul 7, 2016

Jun 24, 2016

Jun 21, 2016

May 26, 2016

Looking for more? Browse all our products here