Rep. Oberstar recommends Jones Act waivers on case-by-case basis

Rep. Oberstar recommends Jones Act waivers on case-by-case basis    Rep. James L. Oberstar, D-Minn., told Homeland Security Secretary Michael Chertoff that blanket waivers to allow foreign-flag vessels to operate in U.S. coastal trades are unnecessary.
   The 1920 Merchant Marine Act, also known as the Jones Act, provides that only vessels built and owned by U.S. citizens and flagged in the United States can carry merchandise between U.S. ports. Waivers to the Jones Act are rarely granted.
   However, in the aftermath of two recent hurricanes in the U.S. Gulf, the Bush administration directed the Homeland Security Department twice to temporarily waive the Jones Act for the transportation of petroleum shipments. The most recent waiver is due to expire Oct. 24.
   Oberstar, the ranking member of the House Transportation and Infrastructure Committee, said in a letter Monday to Chertoff that it’s “not clear” to him whether the Bush administration’s recent waivers helped facilitate the flow of petroleum from the storm damaged Gulf ports.
   “In fact, the administration’s objective would best be served, I believe, by the use of all available resources — including American tankers and tank barges — to transport petroleum product between points in the United States,” Oberstar said. “There is substantial U.S.-flag tonnage currently available and standing by in the Gulf.
   “Unfortunately, the Jones Act waiver has the effect (of) encouraging the use of foreign low-cost flag-of-convenience tankers and discouraging the use of American vessels and crews,” he said.
   Shortly after the hurricanes, an agricultural coalition also requested a blanket waiver of the Jones Act to transport their products in the coastwise trades from the Gulf.
   Oberstar reminded the administration that in 1990 the Customs Service, Maritime Administration and Energy Department agreed to a Jones Act waiver program for situations of “actual or imminent energy supply shortage.” Under the program, if no qualified U.S.-flag vessel is available the Jones Act could be waived on a case-by-case basis for that specific voyage.
   “I understand this is a system that has worked for the past 15 years,” Oberstar said. “It also has the benefit of allowing the government to track waivers to ensure a working knowledge of the number and type of waivers, something not possible under a blanket waiver.”
   The Washington-based Maritime Cabotage Task Force (MCTF), a large group of American shipping interests, praised Oberstar for his recommendation to Chertoff.
   “As usual, Congressman Oberstar has hit the nail on the head,” Glen G. Nekvasil, spokesman for the task force, told Shippers’ NewsWire. “MCTF appreciates Congressman Oberstar’s strong support for the Jones Act, and shares his belief that any future waiver for petroleum products must be on a case-by-case basis and only if U.S.-flag tonnage is available.”