The Jones Act

DEFINITION of 'The Jones Act'

Legislation that regulates maritime commerce between U.S. cities. The Jones Act is found in Section 27 of the Merchant Marine Act of 1920. The act required that goods and passengers transported by water between U.S. ports be done in U.S.-made ships, owned by U.S. citizens and crewed by U.S. citizens. The Jones Act also provided sailors with additional rights, including the ability to seek damages from the crew, captain or ship owner in the case of injury.

BREAKING DOWN 'The Jones Act'

Some provisions of the Jones Act are considered to be protectionist in nature as it requires ships to be U.S.-flagged, crewed and owned. This may price ship builders and operating companies out of the international market because the added expense and higher labor costs make companies less competitive. Today, at least 75% of a ship's crew must be comprised of U.S. citizens

RELATED TERMS
  1. Assailing Thieves

    Individuals who are not members of a ship's crew who steal a ...
  2. Bottomry

    When the owner of a ship borrows money and uses the ship itself ...
  3. Inchmaree Clause

    A clause found in maritime insurance policies which provides ...
  4. HARPEX Shipping Index

    The container ship index of ship brokers Harper Petersen & ...
  5. Transloading

    Transferring goods from one mode of transportation to another ...
  6. Maritime Law

    A body of laws, conventions and treaties that governs international ...
Related Articles
  1. Investing

    Major Companies That Lose Money On Shipping (AMZN)

    We look at some of the big companies in the home delivery business that have high shipping costs and how they mitigate this.
  2. Stock Analysis

    The Real Winners Of Shipping's Paradigm Shift

    If you want to find an undervalued name, here are some obscure winners from the ever-changing shipping industry.
  3. Stock Analysis

    J. Crew Offers New Twist In Old Blame Game

    Problems with J. Crew's direct sales website have frustrated consumers and investors. Just ask the guy who was charged $9,208 for a few polo shirts.
  4. Stock Analysis

    Looking to Invest in Oil Tankers? Try These 3 Stocks (NAT, SFL)

    Obtain information on the oil shipping industry, and discover three of the most widely traded oil tanker stocks to obtain exposure to oil shipping.
  5. Investing News

    Bulk Carrier Vs. Container Vs. Tanker: Exploring the 2016 Shipping Market (C)

    Read about the divergent fates of oil tankers, dry bulk carriers, container ships and other seafaring vessels in the 2016 shipping market.
  6. Investing

    Amazon’s Minimum Purchase Increase Alienates Shoppers (AMZN)

    Amazon’s increased spend for free shipping from $35 to $49 will increase Prime members but cost the company occasional shoppers.
  7. Chart Advisor

    Smooth Sailing Ahead For Shipping Stocks?

    Traders will take note of the low RSI values on the charts of the shipping stocks because it could suggest that we are heading for a bounce.
  8. Budgeting

    Insider Tips For Saving On Cruises

    Savvy insights will help you navigate the choices and avoid some money drains on your first cruises.
  9. Stock Analysis

    Quality Stocks Under $10

    The companies have managed to get out of the worst economic period in over 70 years and have some upside potential.
  10. Mutual Funds & ETFs

    Top Three Transportation ETFs (IYT, XTN)

    These three transportation funds attract the majority of sector volume.
RELATED FAQS
  1. What kinds of costs are included in Free on Board (FOB) shipping?

    Find out about free on board shipping, the obligations of parties involved and the costs parties must assume in free on board ... Read Answer >>
  2. What is the difference between Cost and Freight (CFR) and Free on Board (FOB)?

    Learn about some international Incoterms, and find out about the difference between free on board shipping and cost and freight ... Read Answer >>
  3. What is the difference between cost and freight (CFR) and cost, insurance and freight ...

    Find out about the difference between cost and freight and cost, insurance and freight, two commonly used international trade ... Read Answer >>
  4. How does the International Chamber of Commerce define the term 'Free on Board' (FOB)?

    Find out more about the International Chamber of Commerce, Incoterms rules and how the International Chamber of Commerce ... Read Answer >>
  5. What are the legal regulations on delivery duty paid?

    Understand the legal requirements for delivery duty paid, as well as how responsibilities can shift between buyers and sellers ... Read Answer >>
  6. Are there international maritime laws that govern delivery duty paid?

    Learn about the interaction of international maritime laws and delivery duty paid. Find out more about the distinguishing ... Read Answer >>
Hot Definitions
  1. Labor Market

    The labor market refers to the supply and demand for labor, in which employees provide the supply and employers the demand. ...
  2. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  3. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  4. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  5. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  6. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
Trading Center